Starting a new job, or hiring someone, raises the same questions: do we need a written contract, how long can probation last, and how much notice is required to leave? The Employment Act sets minimum rules that no contract can reduce. This guide summarises the main ones in plain language. It is general information, not legal advice, so check the current Act or ask a lawyer about your case.

The written contract

Where employment lasts more than three months, the employer must give the employee a written contract that states the main terms. These include the job title, the date the job began, the place of work, the pay and how often it is paid, hours of work, leave and the notice period. Even a verbal agreement is binding, but the written terms prove what was agreed. Employers who are hiring for the first time should read hiring your first employee alongside this page.

Probation

Probation lets both sides test the fit. Under the Act, a probationary period cannot be longer than six months, and it may be extended once by up to six more months, but only with the employee's agreement. The contract should state the probation period in writing. During probation, either side can end the contract by giving at least seven days' notice or pay in place of notice. Probation does not remove other rights: the employee still earns leave, is paid at least the minimum wage and must receive statutory deductions. Check the minimum in how to check the minimum wage for your job.

Notice to end a contract

Once probation ends, the minimum notice depends on how the employee is paid:

Pay period Minimum notice (unless the contract gives more)
Paid daily The contract ends at the close of any day, with no notice
Paid weekly or fortnightly Seven days
Paid monthly 28 days

A contract may require longer notice, such as two or three months for senior roles, and the same period must bind both sides. Notice can be replaced by payment of the equivalent wages. Notice must be in writing for the clearest record.

Termination fairly and with a reason

An employer must have a valid and fair reason to end a permanent contract, such as misconduct, poor performance or redundancy, and must follow a fair procedure, which usually means telling the employee the issue and hearing their reply. Terminating without reason or procedure can lead to compensation of up to twelve months' pay in the Employment and Labour Relations Court. Redundancy has its own steps, explained in how redundancy and severance pay are taxed.

Fixed-term and casual engagements

A fixed-term contract ends on the stated date without notice, but repeated renewals can create an expectation of permanent employment. Casual work has its own rules, covered in casual workers and daily wage employees. Document the term and the end date on a probation and contract expiry tracker so renewals are decided before the date passes.

What happens to pay when you leave

The employer must pay all wages due up to the last day, any unused annual leave and any other amount owed under the contract. Some of these payments are taxable, and the PAYE on terminal dues can differ from your normal month. Use the terminal dues tax calculator and the severance pay calculator to estimate them before you resign. For the checklist, read what you are owed when you resign.

Before you sign: a checklist

  • Is the pay stated as gross, with the statutory deductions explained?
  • Is the probation period and the notice during and after it written down?
  • Does the contract say who owns work done and whether side jobs are allowed?
  • Are leave days, sick leave and overtime rules stated? Compare with annual leave rights.
  • Are allowances and benefits listed, so you know which are taxable?

Use the PAYE calculator to turn an offered gross pay into take-home pay before you accept. Employers can use the new employee onboarding checklist to make sure registration with KRA, NSSF and SHIF is done in the first month.

Frequently asked questions

Can an employer extend probation more than once? The Act allows one extension of up to six months, and only with the employee's agreement. A longer or repeated probation is risky for the employer.

Can I be dismissed during probation without a reason? The contract can be ended on seven days' notice, but the employer should still act fairly and not discriminate. Pay due up to the last day must be paid.

Is a verbal job offer binding? A verbal agreement can form a contract, but the employer must still issue written terms once employment passes three months. Keep messages that confirm the offer.

Can notice be longer for managers? Yes. The contract may set a longer period, such as two or three months, as long as the rule applies to both sides.