One of the vexing issues for
any employer in the Kenyan economy is employee management. By this I mean
managing the process of hiring and retaining employees who make a positive
contribution towards realizing the goals of the company. Large corporations are
largely affected by issues like strikes and go slows and the government has
also been vexed by strikes in the education and health sectors.
Inevitably a large part of
employee management is tackled through labour laws. The law provides on how an
employee is hired, the employment contract, terms and benefits and cessation of
employment. A brief highlight of the key laws is important.
The employment Act has
provisions that regulate the relationship between employer and employee
including the minimum terms and conditions of employment such as the terms of
an employment contract, appointment, benefits including leave, termination and
others. The Employment Act also has provisions on resolution of disputes
between parties to an employment contract. The Labour Relations Act on the
other hand has provisions governing the registration and regulation of trade
unions. The Act allows collective bargaining and therein provides for the
manner of negotiating Collective Bargaining Agreements. It also has provisions
on dispute resolution between trade unions and employers.
The Occupational Health and
Safety Act and the Work injury Benefits Act have provisions aimed at protecting
employees while at work. They provide for measures geared towards making the
work environment safer and has provisions on adequate compensation in the event
of work injuries. The Industrial Court Act on the other hand establishes the
Industrial Court, pursuant to the Constitution. The Court has jurisdiction to
resolve labour disputes between employers and employees.
There are a host of other
legislations that affect employer-employee relations such as the National
Social Security Fund Act. Subsidiary legislations such as the annual minimum
wage will also influence this relationship. Policy measures by the government
in various spheres such as immigration will impact the relationship. Lastly as
County Governments enact more legislation, some laws are expected to impact the
employment relationship.
On the above analysis, it is
important to have Small and Medium Enterprises invest in labour law due
diligence and this is why. SMEs normally start operations with a minimum work
force who are easily managed. In most cases a human resource department is not
considered necessary, it’s an increased cost. As SMEs grow and thrive,
employee-relations dynamics also evolve in a larger magnitude. Employees will
feel entitled to a larger piece of the pie if profits are growing. At the same
time an employer cum entrepreneur is also thinking of how to grow the company
and reinvest earning into the business so that the company has a firm
foundation for continued growth.
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