# Notice Period Kenya: Employment Act Rules

> Kenya's notice rules for employers: 28 days, longer contracts, pay in lieu, resignation waivers, probation, redundancy and fair termination.

Original page: https://cazini.co.ke/guides/notice-period-kenya-employment-act  
Updated: 2026-11-13 · Cazini (Paul Omondi)

For a monthly-paid employee in Kenya, section 35 of the Employment Act sets notice at 28 days following written notice, unless the contract provides a longer period. Either party may instead pay the remuneration for the applicable notice period under section 36. Paying notice does not, by itself, make an employer's termination lawful: the reason and procedure must also be fair.

## Choose the correct notice rule

Start with the contract type, pay interval and notice clause. Then establish whether the exit is a resignation, an employer-initiated termination, a probationary termination or redundancy. Do not send the same notice letter for every route.

Section 35's rules below concern contracts other than those for specific work without reference to time or for a journey.

| Employment or pay arrangement | Statutory notice rule |
| --- | --- |
| Daily-paid employment | Terminable by either party at the close of any day without notice. |
| Wages paid at intervals shorter than a month | Written notice, with termination at the end of the pay period next following notice. |
| Wages or salary paid monthly or at longer intervals | Termination at the end of 28 days following written notice. |
| Probationary contract | At least seven days' notice by either party, or seven days' wages in lieu paid by the employer. |
| Redundancy | Separate section 40 notification, selection and payment conditions apply. |

For weekly or fortnightly payroll, identify the pay-period boundaries before selecting the termination date. Section 35 does not create a universal seven-day notice rule for everyone paid more frequently than monthly.

### Check longer contractual notice

Sections 26 and 35 establish minimum protections and allow longer contractual notice. A contract requiring three months' notice is not displaced merely because the employee receives monthly pay.

Read the wording literally. A calendar month and 28 days are not interchangeable. Record the date notice is given, the applicable contractual wording, the notice-expiry date and any earlier release date separately.

For qualifying written notices, if the employee cannot understand the notice, the employer must arrange an oral explanation in a language the employee understands.

## Serving notice, paying in lieu and waiving notice

These routes have different payment consequences. Record which route applies before sending instructions to payroll.

### Serving the notice period

Where notice will be served, document the expected end date, handover arrangements and reporting expectations. Keep the written notice and evidence of when it was delivered together, rather than relying only on a payroll termination date.

Suggested administrative wording, once the correct exit process has been completed:

> Written notice is given under the applicable notice provision. The notice period begins on [date] and expires on [date]. Your employment end date is [date]. The arrangements for handover and final remuneration are set out below.

This wording records notice. It is not a substitute for the reasons and procedure required for an employer-initiated termination.

### Payment in lieu under section 36

Either party may end a section 35 contract without serving notice by paying the other party the remuneration that would have been earned or paid during the applicable period.

The statutory wording is remuneration, not simply basic salary. Do not automatically exclude allowances because a payroll template labels the calculation “notice salary”. Identify the remuneration that would have applied during the notice period and obtain advice where a component is disputed.

Prepare a calculation sheet showing:

- The statutory or longer contractual notice period.
- The portion served and the portion being paid instead.
- The remuneration components included, with reasons for any exclusions.
- The calculation basis and supporting contract or payroll records.
- Notice pay separately from other final-dues items.

Use [payroll workflows](https://cazini.co.ke/payroll) to keep the exit calculation and approvals together. The [Kenya PAYE calculator](https://cazini.co.ke/tools/kenya-paye-calculator) can help explain ordinary salary deductions, but it does not determine the legal notice entitlement or resolve disputed termination-payment treatment.

[Kenya PAYE calculator](https://cazini.co.ke/tools/kenya-paye-calculator) - work out net pay and every deduction for any salary.

### Employer waiver under section 38

If an employee gives resignation notice and the employer waives all or part of it, section 38 defaults to payment of remuneration for the unserved portion unless both parties agree otherwise.

“Do not come back tomorrow” is therefore not a cost-free response to a resignation. Distinguish an employer-directed release from an employee's request for an earlier exit.

Suggested wording where the employer will pay:

> We acknowledge your resignation notice dated [date]. The company waives service of the remaining notice from [date] and will pay remuneration for that unserved period. Your employment end date is [date].

If a different arrangement is agreed, record the actual agreement rather than treating a unilateral instruction as mutual consent.

### Employee leaves without serving notice

Section 36 addresses payment by either party, but an employee's notice liability and the employer's proposed recovery method are separate questions. Do not automatically net an alleged notice debt against salary, leave payments or other final dues.

Keep the resignation, contract clause, attendance record and calculation. Seek documented agreement and legal review of any proposed deduction or set-off before processing it; this guide does not establish a deduction entitlement.

## Notice does not replace fair termination

Under sections 43 and 45, the employer must prove the reason for termination and establish a valid, fair reason and fair procedure. A notice letter or notice payment cannot repair an unsupported dismissal.

Before terminating for misconduct, poor performance or physical incapacity, section 41 requires the employer to:

- Explain the contemplated reason in a language the employee understands.
- Allow a fellow employee or shop-floor union representative to be present.
- Hear and consider the employee's representations.

Keep the supporting evidence, explanation, employee response, hearing record and decision rationale with the notice calculation. An [employee-management record](https://cazini.co.ke/employee-management) should distinguish the reason for exit from its payment arrangements.

### Probation still needs procedural fairness

Section 42 provides the probationary notice rule shown above. It also limits probation to six months, extendable once for up to a further six months with the employee's agreement.

Do not rely on the statutory text excluding probationers from section 41. That exclusion was declared unconstitutional, and the Court of Appeal recorded in Red Lands Roses Ltd v Mugo in 2025 that the provision an employer sought to enforce had no legal effect.

## Redundancy follows a separate route

Do not treat a role elimination as ordinary termination with 28 days' notice. Section 40 requires at least one month's prior notice of the intended redundancy to the union and local labour officer for union members, or personally in writing to non-union employees and the labour officer.

The employer must also apply statutory selection considerations, pay accrued leave in cash, provide at least one month's notice or wages in lieu, and pay severance of at least 15 days' pay for every completed year of service.

In Cargill Kenya Limited v Mwaka, the Court of Appeal held that section 40(1)(f) does not require a separate termination notice before declaring redundancy. That does not remove the statutory redundancy notification and payment conditions. Plan the notifications, selection record and final payments together.

## Close the employment record properly

Before closing payroll, reconcile the exit date, notice served, notice paid or waived, and other applicable final dues. Keep the employee-facing breakdown consistent with the notice letter and any release agreement.

Section 51 requires a certificate of service unless employment lasted less than four consecutive weeks. Include the statutory particulars and do not include adverse comments about conduct or performance.

For unjustified termination, section 49 remedies can include notice-period wages and compensation of up to 12 months' gross monthly wage or salary at dismissal. That compensation is a maximum, not an automatic award. The practical safeguard is a supported reason, a fair process and an auditable payment calculation, not merely a signed notice letter.

## Sources

[Kenya Law - Employment Act, Cap. 226](https://new.kenyalaw.org/akn/ke/act/2007/11) - Minimum terms, notice, payment in lieu, waiver, redundancy, fairness, probation, remedies and certificates of service.
[Ministry of Labour - Employment Act, 2007](https://www.labour.go.ke/sites/default/files/law/The_Employment_Act_2007.pdf) - Written notice and explanation in a language the employee understands.
[Kenya Law - Red Lands Roses Ltd v Mugo, 2025](https://new.kenyalaw.org/akn/ke/judgment/keca/2025/96/eng%402025-01-24/source.pdf) - Legal effect of the probationary exclusion from the section 41 process.
[Kenya Law - Cargill Kenya Limited v Mwaka & 3 others, 2021](https://new.kenyalaw.org/akn/ke/judgment/keca/2021/115) - Separate termination notice under section 40(1)(f) and redundancy conditions.

## Frequently asked questions

### Is the notice period in Kenya 28 days or one calendar month?

For employees paid monthly or at longer intervals, section 35 sets the statutory notice at 28 days following written notice. A contract can provide a longer period, so do not treat a contractual calendar month as automatically identical to 28 days.

### Can a Kenyan employment contract require three months' notice?

Yes. Section 35 allows a contract to provide a longer notice period than the statutory minimum. HR should apply the relevant contract clause rather than assume the statutory 28 days overrides it.

### Can an employer terminate immediately by paying in lieu of notice?

Section 36 allows termination without serving notice by paying the remuneration that would have been earned during the applicable notice period. That settles the notice obligation, not the fairness of the dismissal. The employer must still establish a valid, fair reason and follow the applicable fair procedure.

### Can an employee resign immediately, and can we deduct notice pay?

Section 36 permits either party to end a qualifying contract without serving notice by paying the other party the applicable notice-period remuneration. Do not treat the employee's notice liability as automatic authority to deduct whatever amount you calculate from final dues. Document the position and obtain legal review of the proposed recovery or set-off before processing it.

### What notice applies during probation in Kenya?

Section 42 provides for at least seven days' notice by either party, or seven days' wages in lieu paid by the employer. Do not rely on probation to skip procedural fairness. In Red Lands Roses Ltd v Mugo, the Court of Appeal recorded in 2025 that the provision excluding the section 41 process had no legal effect.