When a company announces redundancy, it often comes during uncertain times, and for many employees, it can feel overwhelming.
In simple terms, redundancy happens when a position is no longer needed, perhaps due to restructuring, automation, downsizing, or a shift in business direction. It’s important to remember that redundancy is not a reflection of your performance or behavior. It’s a business decision, and Kenyan law has clear provisions to ensure that the process is fair and transparent.
Understanding the Legal Framework
According to the Employment Act, 2007, specifically Section 40, your employer must follow certain procedures when carrying out redundancies. They are required to give at least one month’s written notice to you and the labour officer before the redundancy takes effect. The decision about who is selected for redundancy must be based on objective and fair criteria such as skill, reliability, and length of service. Genuine consultation with employees or their representatives is also expected to happen during this process.
What You’re Entitled To
If you’re affected by redundancy, there are several benefits you’re entitled to under Kenyan law. These include notice pay, which applies if your employer hasn’t given you the full month’s notice, they must compensate you with one month’s salary instead. You are also entitled to severance pay, calculated at a minimum of 15 days’ pay for every completed year of service. On top of that, you should receive payment for any unused annual leave days and any other end-of-service benefits like pension or gratuity, depending on your employment contract or company policy. A certificate of service must also be issued, confirming your period of employment.
Voluntary Redundancy: A Personal Choice
Some companies offer employees the option of voluntary redundancy before moving to mandatory layoffs. This means you can choose to leave the organization in exchange for a negotiated package. These voluntary packages often come with enhanced benefits, such as higher severance pay, extended medical coverage, early release, or even career support services. If you’re considering this option, it’s wise to carefully review the terms and consult a financial advisor or legal expert to help you decide what’s best for you.
What You Should Do Now
During this period, it’s important to stay informed. Attend company meetings, ask questions, and read all official communication. Review your contract to understand what you’re entitled to, and start planning ahead. Update your CV, explore training opportunities, and consider your financial needs. If your company offers counseling or job search support, take advantage of it.
If You Suspect Unfair Treatment
If at any point you feel that the redundancy process has been unfair, perhaps if you suspect discrimination or that proper procedure wasn’t followed, you have the right to raise the issue. You can file a complaint with the labour office, speak to your union if you are a member, or pursue legal action through the Employment and Labour Relations Court.
Can a Company Replace You After Declaring You Redundant?
According to Kenyan labour law, redundancy must be genuine, meaning the position you held should no longer be required. If a company declares you redundant and then rehires for the exact same role, this can be viewed as unlawful termination disguised as redundancy. In such cases, you have legal grounds to sue the employer for unfair dismissal.
You can file a complaint with the Ministry of Labour or take the matter to the Employment and Labour Relations Court. If the court finds that the redundancy was not genuine, the company may be required to reinstate you, pay compensation, or provide additional damages for wrongful termination. Keeping documentation of all redundancy communications and evidence of rehiring can strengthen your case significantly.
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Redundancy can be a challenging experience, but knowing your rights and options empowers you to take the next step with clarity and confidence. If you have questions about how the redundancy process applies to you, don’t hesitate to speak with HR or reach out to your local labour officer for guidance.
