Hiring a new employee is an exciting milestone for any business. But before your new hire officially joins the team, there’s one document that sets the foundation for your working relationship: the employment contract.
A well-crafted contract doesn’t just protect your organization; it also ensures that both parties are clear on expectations, rights, and responsibilities. At EagleHR Consultants, we’ve seen how a detailed contract can prevent misunderstandings, promote compliance, and build trust from day one.
Here’s what every employer should include in a job contract.
Basic Information
Start with the essentials: the employer’s name, the employee’s full legal name, position, department, and start date. Include the physical address of your business and the reporting line (who the employee will report to). For fixed-term roles, clearly state the contract duration and renewal terms.
Job Description
Outline the main duties and responsibilities. Be clear but flexible by including a statement that duties may evolve based on company needs. This helps avoid disputes when tasks shift over time.
Type of Employment
Specify whether the role is permanent, temporary, part-time, or contractual. Each category comes with different entitlements and obligations under Kenyan employment law.
Compensation
Detail the employee’s gross salary and payment frequency, whether monthly or biweekly. Include any performance bonuses, commissions, or benefits such as housing or transport allowances. State when salary reviews or adjustments will occur.
Benefits and Allowances
List all benefits clearly, from medical insurance and NHIF/NSSF contributions to pension or provident funds. If applicable, include information about company-sponsored wellness programs or professional development support.
Working Hours
Define standard working days and hours. Indicate how overtime is handled and whether remote or hybrid work arrangements are available. This clarity helps manage expectations on both sides.
Leave Entitlements
Outline the different types of leave available, including annual, sick, maternity, paternity, and public holidays. As per Kenyan law, employees are entitled to at least 21 working days of paid annual leave after 12 months of service.
Termination and Notice
Provide clear guidelines on how either party can terminate the contract. Include the notice period, often one month, and any conditions for severance pay or redundancy. Mention procedures for returning company property and completing clearance.
Confidentiality and Non-Disclosure
Protect your business by including a confidentiality clause. It should prevent employees from sharing sensitive information during and after their employment.
Non-Compete and Conflict of Interest
State any restrictions regarding working with competitors or engaging in activities that could conflict with the company’s interests. These clauses should be reasonable in scope and duration.
Intellectual Property
Clarify ownership of any work created during employment. In most cases, intellectual property developed on the job belongs to the employer.
Disciplinary and Grievance Procedures
Reference your company’s policy on how disciplinary issues or grievances will be handled. This promotes fairness and transparency while ensuring compliance with the Employment Act.
Company Policies and Code of Conduct
Include a statement that the employee agrees to follow company policies, such as anti-harassment, IT use, and social media guidelines. This ensures alignment with organizational culture and standards.
Dispute Resolution
Specify how disputes will be resolved through mediation, arbitration, or the courts, and the governing law, for instance, Kenyan law.
Signatures
The contract must be signed by both the employer and employee, dated, and witnessed where possible. This confirms mutual understanding and agreement.
Final Thoughts
A job contract is more than a legal formality; it’s the blueprint of your working relationship. It defines expectations, prevents conflict, and safeguards both parties. Employers who invest in clear, compliant contracts set the stage for strong, lasting professional relationships.
If you need help crafting or reviewing employment contracts, or if you’re looking to recruit and onboard the right talent, get in touch with EagleHR Consultants at info@eaglehr.co.ke or call 0700 178 680.
We’re here to help you hire right, stay compliant, and build a thriving workforce.