Quick Tips for Managing Employment Disputes Legally

Running a business in Kenya brings a lot of responsibilities, especially when it comes to managing employees and ensuring a smooth and fair workplace. When employment disputes arise, how you handle them can significantly impact your business. We have put together a guide that can help you resolve employment disputes legally and efficiently to protect your business and foster a positive work environment.

If you need legal counsel or more information, reach out to us today – law@ammlaw.co.ke /(020)493 8222.

1. Know the Common Causes of Employment Disputes

Understanding why employment disputes happen can help you prevent issues before they escalate. The common reasons for disputes include:

• Discrimination or Harassment – The Kenyan Constitution (Article 27) and Employment Act prohibits discrimination based on gender, race, disability, or religion.
• Wage or Benefit Issues – Conflicts around overtime pay, delayed payments, or lack of benefits are frequent, so adhering to minimum wage and other legal compensation guidelines is essential.
• Disagreements Over Termination – Employees sometimes feel they’ve been dismissed unfairly. Kenya’s Employment Act, 2007 requires a fair reason for termination and following a defined procedure when dismissing employees to avoid claims of wrongful termination.

Knowing these common causes will help you build fair policies and handle disputes properly when they do arise.

Our Legal Advice: Establish Clear Policies as they are the foundation of any good dispute-resolution process. Ensure policies regarding harassment, discrimination, workplace behavior, and disciplinary procedures are clearly communicated to all employees. A well-defined grievance policy can prevent misunderstandings and provide employees with a clear channel to voice concerns.

2. Encourage Open Communication

Encouraging open communication and providing clear ways for employees to share concerns is one of the most effective ways to prevent disputes.

• Create a Grievance Process – Let employees know who to contact and how to raise issues formally. Following fair disciplinary procedures, as required under the Employment Act (Section 45), helps create a fair process everyone can trust.
• Offer Informal Resolution Options – Mediation can be a great way to handle minor disputes internally. Kenya’s Labour Relations Act, 2007 encourages businesses to use Alternative Dispute Resolution (ADR), including mediation, before escalating issues to formal litigation.
• Hold Regular Check-ins – Periodic one-on-one meetings or team check-ins allow employees to voice concerns early on and keep the lines of communication open.

Our Legal Advice: Foster an open-door policy to build trust with employees and between supervisors and employees to help resolve issues quickly, preventing many conflicts from escalating.

3. Document Employment Decisions Carefully

Good record-keeping is one of your best tools for managing employment disputes. Clear, consistent documentation can protect your business if a dispute arises.

• Employment Contracts – Each employee should have a signed contract, as mandated by the Employment Act (Section 9), outlining their role, pay, hours, and terms of employment.
• Performance Records – Document all performance reviews and disciplinary actions. When you address performance issues or give warnings, write it down and have the employee sign an acknowledgment.
• Compensation and Time Records – Keep up-to-date records of each employee’s hours and wages. This documentation can help settle wage disputes quickly and ensure you’re in compliance with Kenya’s minimum wage laws.

Our Legal Advice: Both employers and employees should document their own perspectives for transparency. Detailed records can show that you have handled decisions fairly and by the book, which is vital if issues go to court.

4. Stay Compliant with Employment Law

Kenya’s employment laws, like the Employment Act, Labour Relations Act, and the Occupational Safety and Health Act, are designed to protect both employees and employers. Being familiar with these laws will help you avoid inadvertent employment disputes.

• Review Key Laws regularly – Make sure your policies stay up-to-date with any changes to Kenyan labor laws. Reviewing your employee handbook and policies each year helps you stay compliant.
• Consult Legal Experts When Needed – Having an employment lawyer or HR consultant you can reach out to for quick questions is helpful. They can assist with complex issues, terminations, or contracts.
• Provide Regular Training for Management – Ensure your management team understands Kenyan labor laws and their responsibilities, especially concerning discrimination, harassment, and fair treatment. This training can help prevent legal issues and create a respectful work environment.

Our Legal Advice: Take a proactive approach about legal compliance to reduce the risk of disputes and ensure that, if they do arise, you’re prepared to handle them appropriately.

5. Investigate Employee Claims Promptly

When an employee brings a complaint, it’s essential to act promptly and objectively. A quick, fair investigation can help resolve most issues internally.

• Assign a Neutral Investigator – Choose someone with no prior involvement in the complaint, like a HR manager or a trusted senior team member, to investigate.
• Gather Relevant Documentation – Collect any related documents, including performance records, emails, and witness statements, to understand the issue.
• Follow a Structured Investigation Process – Document the steps you take during the investigation to show transparency and impartiality. Kenya’s Employment Act (Section 41) requires that employees be given a fair hearing before any action is taken, which is vital if termination is involved.

Our Legal Advice: For each case, always conduct a thorough, fair investigation process to demonstrate to employees that their concerns are taken seriously and handled with integrity.

6. Consider Settling Disputes to Save Time and Resources

In some cases, resolving a dispute with a settlement may be quicker and more cost-effective than a lengthy legal process. Settlements can protect your business and give both parties a way to move forward.

• Evaluate Settlement Options Early – Weigh the costs of a settlement against the potential time and money involved in litigation. Settlement can be especially useful for minor disputes.
• Negotiate with Legal Guidance – Seek legal advice before agreeing to settlement terms to ensure they comply with Kenyan law and protect your business’s interests.
• Use Confidentiality Agreements – Including a confidentiality clause in your settlement can help protect your business’s reputation and ensure the issue stays private.
• Settlements can be a practical solution, giving both parties closure and allowing your business to move forward smoothly. 

Conclusion

By managing employment disputes with a fair, open, and legally sound approach, you can protect your business while fostering a positive workplace culture. Remember to prioritize communication, keep thorough records, stay informed about Kenyan labor laws, and seek legal guidance. Handling disputes effectively not only safeguards your business but also strengthens your reputation as a fair and responsible employer in Kenya.

Sources

1. Constitution of Kenya, Article 27: Prohibits discrimination.
2. Employment Act, 2007, Section 45: Requires fair disciplinary procedures.
3. Employment Act, 2007, Section 41: Outlines requirements for procedural fairness.
4. Deloitte. (2020). 2020 Global Human Capital Trends: A Framework for Managing Employee Relations in the Modern Workplace. This report covers trends in human capital management and emphasizes conflict resolution in corporate governance. Available at: https://www2.deloitte.com
5. Society for Human Resource Management (SHRM). (n.d.). “Managing Workplace Conflict.” SHRM provides practical resources and expert advice on managing workplace conflict and legal disputes effectively. Available at: https://www.shrm.org. 

Colvin, A. J. S. (2012). “An Empirical Study of Employment Arbitration: Case Outcomes and Processes.” Journal of Empirical Legal Studies, 9(4), 777-807. – Offers insights into the outcomes and effectiveness of arbitration as a method of dispute resolution.