This archive report was first published on 21 July 2019.
As corporate restructuring takes place in Kenya, massive staff layoffs are becoming increasingly common. A recent merger, for instance, led to a significant reduction in staff numbers. But what is the right way to lay off staff?
According to the Employment Act, a redundancy should be carried out in a non-discriminatory and equitable manner. This means that the relevant regulators should be notified, and targeted staff should be paid as provided for in the Act.
When laying off staff, companies should be sensitive to the employees' needs and take measures to minimize the impact on their livelihoods. This can include providing recommendations and assistance in finding new employment. In some cases, companies can even outsource functions to sacked staff, allowing them to form a company and earn a living.
However, Kenya does not yet have transfer of undertakings (Tupe) regulations, which ensure that terms of employment are preserved despite a change of ownership. This means that employees who are laid off due to a change of ownership may not have the same protections as their counterparts in other countries.
Ultimately, the right way to lay off staff is to follow the law and be sensitive to the employees' needs. By doing so, companies can minimize risks and impact, and maintain a positive reputation.
Published on Sunday, July 21, 2019
