An employee walks into your office and drops a resignation letter on your desk. What happens next?
Most employers scramble. Can they leave immediately? What if they’re in the middle of a disciplinary process? Do you have to pay them for the full notice period if you’d prefer they leave early?
In today’s blog, you’ll find the exact notice periods required by law, what to do when an employee quits without notice, and the obligations you must fulfill before their last day.
If you need personalized guidance on handling employee resignations, book a free consultation with our HR experts.
Kenya Labour Law Resignation Notice Period Requirements
Before we even talk about notices, understand that there are two main types of contracts in employment:
- Contracts for specific work or tasks. e.g., Building a wall or transporting goods from point A to B. These types of contracts end automatically once the job is done.
- Contracts based on time. e.g., monthly, weekly, or daily employment. These are ongoing and require notice before ending.
Now that we’ve established that, how much notice should Kenyan employees give before resigning?
According to Kenya’s Employment Act, 2007 (Section 35(1)),
- If an employee is paid daily, they can end the contract at the end of any day, without giving prior notice.
- If wages are paid weekly or biweekly, the employee must give notice before the next pay period begins.
- Employees paid monthly must give at least 28 days’ notice before ending the contract.
The notice periods defined in the Employment Act are the baseline legal requirements.
However, employers and employees are free to agree to longer notice periods in their contracts.
When this happens, the terms of the contract take precedence over the law’s default rule.
For example, if there’s a clause in the employment contract that says, “Either party must give two months’ written notice before termination,” then the employee will follow that.
This means that if an employee decides to resign, they must give their employer two months’ notice (not 28 days).
Similarly, if an employer wants to terminate employment, they must also provide two months’ notice or pay the employee in lieu of notice for that full period.
Can an Employee Resign Without Notice?
Yes, a Kenyan employee can resign without notice, but they must compensate the employer for the unserved notice period.
Under Section 36 of the Employment Act, the party who ends the contract without notice must pay the other party the equivalent of the remuneration that would have been earned during the notice period.
For example, if an employee’s notice period is one month and they resign immediately, you can deduct one month’s salary from their final pay. This deduction is legally known as payment in lieu of notice.
If the employee has no final dues left to offset the amount, you are legally allowed to bill them for the unserved notice period instead.
When an Employer Waives the Notice Period
What about when an employee serves their notice, but the employer prefers they leave earlier?
In such cases, the law still protects the employee.
When an employer waives all or part of the notice period, they must pay the employee remuneration equivalent to the unserved portion of the notice.
For example, if an employee gives a one-month notice but you ask them to leave after two weeks, they’re entitled to two weeks’ pay for the remaining notice period.
How to calculate pay in lieu of notice under Kenyan law
Pay in lieu of notice is basically the amount an employee would have earned if they had worked through the notice period.
For example, if an employee’s contract provides for one month’s notice and their monthly salary is KSh 60,000, but they leave immediately, you can deduct KSh 60,000 from their final dues.
Employer Obligations After Employee Resigns
After an employee resigns or issues a notice, there are several responsibilities an employer must fulfil. Let’s break them down:
1. Accept resignation in writing
Under Kenyan labor laws, every employee has the right to terminate their contract of service.
As such, when an employee communicates their intention to resign (in writing, where required), the employer is legally bound to acknowledge it.
Employers can not refuse or decline a resignation.
The resignation takes effect from the notice date stated in the letter or immediately if the employee pays in lieu of notice.
Resignation also applies even if the employee was in the middle of a disciplinary hearing.
However, Kenyan courts have made a distinction:
- If an employee resigns with immediate effect, the employer’s authority to continue or conclude disciplinary proceedings ends at the moment the resignation is received.
- If an employee resigns with notice, the employer retains the right to discipline them during the notice period, since the employment contract is still active until the notice expires.
A resignation letter overrides a pending disciplinary process if it is immediate, but disciplinary authority continues if the employee is serving notice.
2. Facilitate handover and clearance
Begin the handover and clearance process immediately after receiving the resignation notice.
The employer should outline a handover plan that includes:
- A list of tasks, projects, and responsibilities the employee must complete or transfer.
- Identification of a replacement or interim staff member to take over critical duties.
- Documentation of passwords, client contacts, and ongoing commitments to ensure seamless transition.
In addition to the handover, the employer should facilitate clearance procedures, such as:
- Returning all company assets (e.g., laptop, access card, tools, uniform, or vehicle).
- Settling any financial obligations the employee may have to the company.
- Completing an exit checklist or clearance form to confirm that all responsibilities have been properly discharged.
You should ideally complete clearance before or on the employee’s final working day.
3. Process final dues
When an employee resigns, the employer is required to calculate and pay all final dues within a reasonable time after the last working day.
Final dues generally include:
- Unpaid salary up to the last day worked
- Payment for accrued but unused leave days
- Overtime or commissions owed, if applicable
- Service pay, where the employee qualifies under Section 35(5) of the Employment Act
If the employee resigns without serving the full notice period, the employer may deduct payment in lieu of notice from the final pay.
4. Issue a Certificate of Service
As long as an employee has requested a Certificate of Service, the employer is required by law to provide it.
This applies as long as the employee has been in employment for four consecutive weeks
The Certificate of Service confirms that the person was employed, when they started and left, and what role they held. It should include the following sections:
- The employer’s name and postal address
- The employee’s name
- The employment start date
- The employee’s job title and usual place of work
- The employment end date
This certificate is so critical that if an employer refuses to issue one or includes false information in it, they commit an offence under Section 51(4) of the Employment Act.
Upon conviction, the employer may face a fine of up to KSh 100,000, imprisonment for up to six months, or both.
Unlike the Certificate of Service, employers are not legally required to provide employees with a testimonial, reference letter, or performance certificate.
Wrapping Up
An employee resignation handled the wrong way can result in financially heavy legal penalties and damage your reputation.
While the law provides a lot of guidance on employee resignation rights, it’s still better to have an HR expert review or create exit policies that will protect your business.
Bridge Talent Management has worked with over 100 businesses across Kenya, and we know all the pitfalls that come with ending an employment contract.
We offer HR compliance audits, staff handbook reviews, and advisory calls for both employers and HR departments.
Book a free consultation to get started.
FAQs
Can I resign without notice in Kenya?
Yes, you can resign without notice in Kenya, but you’ll need to compensate your employer for the unserved notice period. This means they can deduct the equivalent salary from your final pay. It’s called payment in lieu of notice, and it’s covered under Section 36 of the Employment Act.
What are the rules for resignation in Kenya?
The notice period depends on how often you’re paid. Daily workers can resign at the end of any day without notice. Weekly or biweekly workers must give notice before the next pay period. Monthly employees must give at least 28 days’ written notice, unless your contract specifies a longer period.
What rights does an employee have during resignation?
Employees have the right to resign at any time, and the employer cannot refuse their resignation. Employees are entitled to all final dues, including unpaid salary, accrued leave, and any owed commissions. Employees also have the right to request a Certificate of Service, which the employer must provide by law if they’ve worked for at least four consecutive weeks.
Can an employee withdraw their resignation notice?
Since resignation is a legal right and doesn’t require employer approval, withdrawing it would need the employer’s consent. Once the employer has accepted the resignation and started planning for the employee’s exit, it can’t be taken back without their agreement.
What is the law for resignation in Kenya?
Resignation in Kenya is governed by the Employment Act, 2007, particularly Sections 35–51. The law sets minimum notice periods based on payment frequency, but both parties can agree to longer notice periods in the employment contract.
Book a consultation to review your resignation and notice procedures.
