Written resignation letter is standard.

Generally, employees who resign aren't eligible for severance pay.

• Final Dues: All wages earned up to the employee’s last working day

• Accrued Leave Pay: Payment for any unused annual leave days, calculated on a pro-rata basis

• Service Pay (if applicable): Payable only if the employee was not a member of NSSF, a registered pension scheme, or a gratuity scheme. As most formal employees are enrolled in NSSF, service pay is often not payable

• Is absent from work without authorization or a valid reason

• Is intoxicated to the point of being unable to perform duties

• Intentionally neglects, refuses, or improperly performs work

• Uses abusive or offensive language

• Willfully disobeys a superior's instructions

• Is arrested for a criminal offense punishable by imprisonment and remains in custody for more than 10 days

• Engages in criminal conduct against the employer or its property

Before terminating an employee for gross misconduct, you're required to inform the employee of the allegations and give them a chance to respond. If the employee believes the dismissal was unjust or carried out in bad faith, they have the right to pursue compensation through the court.

In summary dismissals, you must provide written reasons for the dismissal, proof of a fair hearing (Section 41), and documentation of disciplinary proceedings.

Not applicable. Summary dismissal (Section 44) requires no notice period, but still requires a procedural hearing.

Not applicable.

When an employee is lawfully dismissed without notice (summary dismissal), you're required to pay any pending wages, allowances, or other benefits. Additionally, within seven days, you must file a written report with the labor officer in the district where the employee was working, outlining the reasons for the dismissal and the applicable notice period.

"Without cause" generally refers to termination that's not disciplinary—meaning the employee isn't guilty of misconduct, but you end the contract for other reasons (e.g., contract expiry or performance-based decisions). Termination "without cause" must still be for a valid reason and accompanied by procedural fairness, or you may be liable for unfair termination (Section 49).

Termination must be in writing. Letter must include: date of termination, applicable notice period (or pay in lieu), stated reason (even if general), reference to employee's rights (final dues, certificate, etc.)

Employees on indefinite contracts are entitled to a minimum of one month's written notice if they've been employed for five years or less. For those who have worked more than five years, the required notice period increases to at least two months.

Only payable if termination is due to redundancy (which is not possible under the EOR setup).

Upon termination without cause, the employee is entitled to:

• Final Salary: Wages earned up to the final day, including pay in lieu of notice if not worked

• Accrued Leave: Cash payment for any unused annual leave (Section 28)

• Service Pay (only if NSSF not paid): Must be calculated in accordance with Section 35(5)

• Pension / NSSF Contributions: Ensure that final contributions are submitted

Mutual termination occurs when both you and the employee voluntarily agree to end the employment relationship under mutually agreed terms. While not explicitly detailed in the Employment Act, 2007, mutual separation is legally recognized under contract law principles, provided it's voluntary, both parties consent in writing, and the agreement doesn't violate labor rights. Courts will typically uphold a mutual termination agreement if it's not coerced, ambiguous, or made under duress.

A written mutual separation agreement is required, signed by you (or authorized officer), the employee, and a witness (optional but standard). The agreement must clearly outline: effective date of termination, reason for mutual separation, waiver of further claims (if any), breakdown of final payments.

Not legally required if the parties agree to waive it in the mutual agreement. However, the agreement must specify whether notice is being served, waived, or if payment in lieu is being made.

Not mandatory unless the agreement includes it.

• Final Salary: All earnings up to the final working day

• Accrued Leave: Cash compensation for any unused annual leave (Section 28)

• Notice Pay (if not waived): One month’s salary if applicable

• Pension/NSSF Contributions: Ensure all contributions are up to date and final payments submitted

• Medical Cover: Usually terminates with employment unless otherwise extended by agreement

• Bonus or Commission: Must be paid if contractually earned by the date of separation

Severance pay is not payable.

Upon expiry, you must settle:

• Final wages
• Accrued leave pay
• Any contractual benefits
• NSSF/SHIF remittances

This occurs when you end the contract before the agreed end date, outside misconduct grounds.

Written notice is mandatory unless the contract provides otherwise. Notice period is as per the contract, or at least one month (for monthly contracts), per Section 35. Payment in lieu of notice is allowed under Section 36.

Severance pay is not payable.

• Early Termination Compensation: If the contract does not allow early termination, the employee may claim salary for the remaining period as damages, based on case law

• Final Salary: Payment up to the date of termination

• Pay in Lieu of Notice

• Accrued Leave Pay

• Clearance and Exit Documentation

• Certificate of Service

According to Section 18(4) of the Employment Act, 2007, you must pay the employee's final wages and any other dues on or before the next payday following the termination or resignation.

While the Employment Act doesn't specify a direct monetary penalty for late payment, failure to pay wages timely is considered a breach of contract and can lead to complaints to the Directorate of Labour or Employment and Labour Relations Court. You may be ordered to pay the wages plus compensation for damages and interest.