Termination of Contract of Employment

Before any termination a notice should be offered depending on the policy of the organization. an employee who does not understand the notice shall be explained the whole notice to him orally, in a language the employee understands. Each and every employee is entitled to lawful and fair termination.

a) Expiry of contract

A contract is terminated when the period expressed in it expires, if the employee is engaged on a journey, the employer may extend the period of service for a sufficient period, which shall not exceed one month, to enable the employee to complete the journey.


b) Termination on account of redundancy

An employer shall not terminate a contract of service on account of redundancy unless the employer complies with the following conditions;

  • Where the employee is a member of a trade union, the employer notifies the union and the labour officer in charge of the area of the reasons for, and the extent of, the intended redundancy not less than a month prior to the date of the intended date of termination.
  • Where the employee is not a member of a trade union, the employer notifies the employee personally in writing and labour officer.
  • The employer has to pay off in cash any leave due to an employee who is declared redundant.


c) Termination on grounds of misconduct

An employer shall before terminating the employment of an employee, on grounds of misconduct, poor performance or physical incapability explain to the employee, in a language the employee understands, the reason for termination in presence of another employee or a union representative of his own. Before terminating the employment of an employee or summarily dismissing an employee, an employer shall hear and consider any representation which the employee and the person chosen but the employee may make on grounds of misconduct or poor performance.

Procedure for Handling a Termination In Case of Displinary

  1. Informal warming-A verbal/informal warming is given to the employee in the 1st instance of a minor offence the warning is administered by the employees supervisor.
  2. Formal warming-A written formal warning is given to the employee in the 1st instance of more serious offence or after repeated instance of minor offences. It is done by the immediate manager.
  • -It should state the extent nature of offence and indicate any future displinary action which will be taken against the employee if the offence is repeated within a specified time limit.
  • A copy of the written warning is placed in the employee’s personal file but it is destroyed 12 months after the date of when it was given if no other offence has been committed.
  • -The employee is expected to read and sign the formal warming and has the right to appeal to the higher management if he/she thinks that the warning is unjustified.
  • -The H.R managers should be asked to advise on the text of the written warming.
  1. Further displinary action: If despite previous warnings an employee fails to reach the required standards in a reasonable period of time it may be adequate to consider further displinary action. The action may be suspension or dismissal.

d) Termination of probationary contract

No employer shall employee under probationary contract for more than a period of twelve months. The employer should issue a 7 days notice prior termination.

e) Summary dismissal

This is when an employer terminates the employment without any notice or with less notice than the employee is entitled to. The following are some of the matters that may amount to gross misconduct so as to justify the summary dismissal of an employee. But this does not prevent an employer or employee from respectively disputing whether the facts giving rise to the dismissal are justifiable or of lawful grounds:

  1. Without leave or lawful cause an employee absents himself from his/her appointed work place.
  2. During working hours an employee becomes intoxicated hence rendering himself incapable to perform his duties.
  3. An employee willfully neglects to perform any work which it was his duty to perform or carelessly or improperly performs it.
  4. An employee uses abusive or insulting language to his employer or to a person placed in authority over him/her.
  5. An employee commits or on sufficient grounds is suspected of having committed a criminal offence against his employer of his employer’s property.

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