Termination of employment
The normal process
Termination of appointment is effected in accordance with the terms and conditions of
service incorporated in the contract or letter of appointment. The employee is given
three months’ notice in writing or one month gross salary in lieu thereof. Either side
may effect termination of any appointment including probationary. Such notice may
include earned leave. Normally, the services of employee are terminated on the follow-
ing grounds:
- Reaching the compulsory retirement age.
- Medical. That is where an employee has by reasons of any disease of body or mind,
become unable to discharge his/her duties efficiently following the recommendation
of a medical board. - Redundancy. That is where the post held by an employee has been abolished. The
procedure requires consultation with workers committee as provided under Section
61 (9) of the security of employment act No. 62 of 1964 (CAP 574). - Where the appointing authority finds that the interests of the organisation are in
question due to general and sustained employee inefficiency, which cannot be
attributed to negligence or failing health. - Where the disciplinary action has resulted in such punishment being awarded.
Terminal benefits
Upon termination, depending on the contract of employment and reasons for termina-
tion, an employee is entitled to the following benefits:
- One salary in lieu of notice,
- Accumulated earned leave,
- Fare for the employee and his direct family to his registered place of domicile,
- Transport costs for personnel effects 1.5 tons to the employee‘s registered place of
domicile, and - Social security scheme membership benefits (NPF/PPF).
Termination by retrenchment
The company maintains the existing job establishment, as long it is required. The pre-
vailing business environment determines the number of job opportunities. Therefore,
when there is need to retrench employees as dictated by the business environment, re-
dundancy is affected once the management has consulted the trade union as required by
law under S. 61, (9) of the security of the Employment act 1964, Public service (negoti-
ating machinery) act 2003 and Employment and labour relations act 2004. The follow-
ing criteria would be adhered to in effecting retrenchment:
- Retain hardworking employees,
- Retain workers whose jobs are not affected by the business environment,
- Retain workers with the ability to perform, and
- Last in first out (LIFO) is used but management reserves the right to retain certain
employees with shorter period, but whose skills are needed for efficient running of
business.