Redundancy in Kenya: Process & Payment Checks

Identify the operational decision

A redundancy review starts with the business reason and the role affected. Keep a written explanation of the change, the positions involved, alternatives considered and the proposed timetable. A payment schedule alone cannot establish whether the process is appropriate.

For an employee, ask what operational change is said to affect the position and keep the notices received. For an employer, preserve the decision records and avoid treating redundancy as a shortcut for a conduct or performance issue.

Review notices and selection together

Section 40 of the Employment Act addresses notices to the relevant employee or union and the labour officer, selection considerations, leave, notice pay and severance. Identify the union position and the applicable contract or collective agreement before deciding the notice route.

Check the actual content, recipients and dates of the documents. Selection criteria should be explained and recorded, particularly where some people in comparable roles remain. Ask what consultation and consideration of alternatives are appropriate in the circumstances rather than relying only on a standard letter.

Calculate each component separately

Section 40 provides for severance of not less than 15 days' pay for each completed year of service. That component is distinct from accrued leave, salary due and the applicable notice payment. A contract or collective agreement may need to be considered for additional or more favourable terms.

The correct pay basis and daily-rate calculation should be checked for the item and facts. Do not treat a calculator's selected assumptions as a judicial determination. Record what is included, what has already been paid and how the gross total becomes the proposed net payment.

Keep a process and evidence checklist

• The restructuring or operational rationale and affected roles.
• Relevant contracts, policies and collective agreements.
• Notices with dates, recipients and delivery evidence.
• Consultation records, responses and alternatives considered.
• Selection criteria and the evidence used to apply them.
• Individual service records, leave balances and payment schedules.
• Proposed exit documents and any settlement terms.

Where an inconsistency is identified, establish what corrective step is legally available before continuing. Payment after an objection does not automatically answer every procedural concern.

Get advice before the critical step

The redundancy calculator combines a provisional financial estimate with process questions. Use its result as an agenda for review, not as approval to issue notices or a guarantee of a successful claim.

An employer should seek advice before implementing the process. An employee should seek advice promptly after receiving the relevant notices, especially before agreeing a release. A 30-minute consultation can identify the main risks and define a separate scope for document review, implementation support or representation.

Useful tools for this question

The tools provide provisional information based on selected assumptions. They do not verify documents or determine legal rights.

Official sources and further reading

• Employment Act: section 40 and related provisions

Related legal services

This guide provides general information, not legal advice, and does not create an advocate-client relationship. The appropriate route, applicable law and current official procedures should be checked for your circumstances. Do not send confidential documents through the enquiry form.