A quick guide to retrenchment tanzania introduction. The kenyan employment act, 2007 and the labour relations act state that. Effects of the civil service retrenchment programme. To find out the impact of the ongoing retrenchment on remaining employees morale at kbl. Opinion it is not too difficult to discern that retrenchment in kenya s public sector is halfhearted and haphazard.
Employees must equip themselves with the requirements prescribed by the labour relations act 66 of 1995 the act, to ensure that. This is as long as the retrenchment is done in a legal manner where the employee affected, their trade unions or both are informed of an impending job loss. Our eservices, web chat and hotline remain available. According to the star, the massive retrenchment drive was deferred until after the. Civil servants to be fired from february in massive. Advantages and disadvantages of retrenchment strategy. The legal basis of redundancy is laid down in statute together with general rules of international law and treaties and conventions ratified by kenya. The employer must also prove that heshe has shared with the targeted employees or their representatives all documentary and other information pertinent to the retrenchment. The retrenchment procedure as laid down in the labour relations act lra must be followed properly and in good faith by the employer. Effects of retrenchment on organizational performance at. The secretarygeneral of the union of kenya civil servants tom odege says as far as he is concerned the objective of the.
Overview grindrod may change staffing requirements as dictated by the economic climate, and or operational requirements. It didnt matter if the retrenchment was voluntary or involuntary i. What are your rights when retrenchment comes knocking. Labour republic of south africa page media desk tenders vacancies site map home about us contacts services if the i of 2 basic guide to retrenchment employers must consider alternatives to retrenchment. The effects of retrenchment journal of human resources. Employers must notify mom within 1 week for any costsaving measures that affects employees salaries. If you have made an appointment with us, we will contact you instead.
Civil servants to be fired from february in massive retrenchment. Massive retrenchment in the civil service targets 40,000 workers. A survey of the criteria used by commercial banks in kenya. A survey of the criteria used by commercial banks in kenya to determine employees to retrench mercy gacheri munjuri department of marketing and management the catholic university of eastern africa p. Kenya labour law on redundancy corporate staffing kenya. This is not an example of the work produced by our law essay writing service. A person cannot be declared redundant but a position which a person is holding can be declared vacant. Final version date of issue 4 april 2003, revised may 24, 2005. To sum up, if an employer fails to start the consultation when it contemplates a retrenchment and prior to taking an absolute decision to retrench, this will affect the fairness of the retrenchment processand likely lead to a pile up of labour disputes in tanzanias commission for mediation and arbitration at a time when the economy is. These are defined as requirements based on economic, technological, structural or similar needs of the employer. Terminal benefits are the final entitlements of an employee upon termination of an employment contract. What is the redundancy procedure in kenya according to the employment act 2007. Kenya has about 700,000 employees in the public sector, including 199,921 civil servants in the national and county governments. Retrenchment correct procedure when retrenching workers.
What terminal benefits am i entitled to as an employee upon the termination of my employment contract. By end of 2010, a total of 501 employees had been retrenched at eldoret telkom. A study on socioeconomic impact of retrenchment on. Pdf effects of retrenchment on the morale and job security. The parastatals that have undertaken retrenchment include kenya airways. The staff reduction measures reduced the size of the civil service from 272,000 employees in 1992 to 191,000 employees in 2003. Effects of the civil service retrenchment programme on women in nakuru town, kenya, 19702006 author. Kenya airways sends home 80 staff in retrenchment plan targeting 600. International journal of humanities and social science vol. It results in a complete severance of employeremployee relationship. Redundancy procedure in kenya corporate staffing kenya. Before the employer can retrench any employees for operational reasons, the firm must, in writing, consult with the employees, people in a collective agreement or workplace forum, and the registered trade.
An employer must consult not only on the consequences of the proposed retrenchment but in respect of the business needs and to be able to show that all reasonable alternatives have been considered prior to contemplating the need for retrenchment. The study examined the postretrenchment effects on employees using the case of the telkom kenya. Despite many things that can be said against retrenchment, it does handle the immediate problems very effectively. Redundancy means loss of employment, occupation, job or career by involuntary means through no fault of an employee, involving termination of employment at the initiative of the employer, where the services of an employee. For example if your employee is a clinical officer and a member of kenya clinical officers association. The government aimed at cutting down expenditure, ease the burden on the taxpayers and enhance service.
Nakuru county surviving employees in state corporations of. Kenya airways sacked 80 employees in one of the costcutting measures expected to yield sh10 billion in savings a year. In tanzania retrenchment is provided for under section sect 38 of employment and labour relations act, act no. Sep 05, 2015 massive retrenchment in the civil service targets 40,000 workers. Abstract the aim of this study was to establish the effects of retrenchment on employees of k. The parastatals that have undertaken retrenchment include kenya airways, kenya tea development agency, kenya commercial bank and national bank of kenya. Corporation, a procedure was developed for retrenching a group of temporary workers which complied with all. Online wrath software and low captivated merchant account panda activescan is an online product that sucks your pc for all users of operating software. Introduction retrenchment is the process by which staff is reduced to cull redundant employees and reduce the wage bill.
A survey of the criteria used by commercial banks in kenya to. May 24, 2017 the section 189 retrenchment process in terms of the labour relations act section 189 of the labour relations act lra permits employers to dismiss employees for operational requirements. The retrenchment must be unavoidable and fair procedure is essential. Your guide to labour law in south africa labour guide. It is a case of involuntary unemployment to the workman. The purpose of the study was to investigate the effects of retrenchment on the motivation and loyalty of surviving employees of telkom kenya limited. Consultation is vital to retrenchment process the citizen. In kenya, the government undertook retrenchment policy as one of the civil service reform programs. Retrenchment is the termination of an employee, employees or group of employees due to an operational requirement.
Atms and online banking, has freed bank staff from the mundane manual. Confusion it is possible to declare one position redundant and therefore only one employee loses his or her job. Senior government officers and politicians condemn it, only for their voices. Retrenchment is a permanent measure to remove surplus staff because of some basic change in the nature of the business. Upon termination by rift valley railways kenya limited, the claimant sought retrenchment and terminal dues from the respondent. Kenya railways corporation environmental and social due. He stated that his transfer to rift valley railways kenya limited was one that should not have been done because there was a pending disciplinary matter with the respondent. Before the employer can retrench any employees for operational reasons, the firm must, in writing, consult with the employees, people in a collective agreement or workplace forum, and the registered trade union or the representative of the employees. The redundancy procedure in kenya redundancy is one of the ways of terminating employment. All about redundancy in kenya, redundancy and labour laws, redundancy and wages and salaries in kenya on africapay kenya. Free sample 8 retrenchment letter template south africa excel word pdf doc xls blank tips. The present study aims to discover the socialeconomic impact of an unanticipated and involuntary loss of employment retrenchment of workers, evaluating the efficacy of the law in this regard and tries to assess as to how persons who have lost their employment owing to. According to the kenyan labour law on redundancy, the employers right to terminate employment on grounds of redundancy is provided for in the employment act, 2007. In view of the covid19 situation, there is no need to visit mom services centre for advisory and transaction services.
Nyaberi and kiriago 20 examined effects of retrenchment on the morale and job security of surviving employees of telkom kenya limited using descriptive statistic, specifically the mean scores. Redundancy means loss of employment, occupation, job or career by involuntary means through no fault of an employee, involving termination of employment at the initiative of the employer, where the services of an employee are superfluous and the practices commonly known as abolition of office, job, or occupation and loss of employment. The respondent further relied on the case of kenya plantation agricultural workers union v harvest limited 2014 eklr where the court opined thus section 401 c of the act clearly provides that in selecting employees for redundancy, the employer shall have regard to seniority in time and to skill, ability and reliability of each employee of the particular class of employees affected by the redundancy. Purpose and objectives of the study the purpose of the study was to investigate the effects of retrenchment on the morale and job security of surviving employees of telkom kenya limited. As part of the privatization of the kenya railways. In keeping with the companys human resources philosophy as well as the requirements of the labour relations act 66 of 1995, as amended and the code of good practice on dismissals based on operational requirements, the. According to the act, you are required to give the employee together with their union or labor officer a written notification at least one month before the said redundancy begins.
Effects of retrenchment on organizational performance at the. Mar 03, 2018 by perminus wainaina, what is the redundancy procedure in kenya according to the employment act 2007. The employment and labour relations courts the courts have, in recent cases, introduced additional requirements to the redundancy procedure set out in the. In the civil service, various ministries have been reducing their staff since 1994 in an effort to reduce costs and increase efficiency. Nearly 39,000 employees,about half in the national government, half in the counties, will be retrenched. Kenya airways sends home 80 staff in retrenchment plan. The biggest difference between the two is that retrenchment targets people, whilst redundancy targets positions.
Opinion it is not too difficult to discern that retrenchment in kenyas public sector is halfhearted and haphazard. This paper examines the effect of retrenchment on organizational performance based on a study conducted at the telkom kenya, eldoret branch over a 5 year period. The study examined the postretrenchment effects on employees using the case of the telkom. In certain circumstances, this may result in employees becoming redundant. Pdf effects of retrenchment on the motivation and loyalty of.
Employers should consider alternatives such as redeployment and temporary layoffs. A survey of the attitudes of retrenches towards retrenchment. To determine whether there is a retrenchment policy that exists in kenya breweries limited and whether its adequate. Before we get right into it, its important we first understand what the law says about redundancy. Retrenchments happen mostly where the services of the employee are no longer needed. The study dealt with the effects and outcomes of organizational retrenchment. The effects of retrenchment can be either positive or negative, thus, most apparently, there are different factors in the background of the diverse impacts. Redundancy is defined under section 2 of the employment act 2007 as. The kenyan employment act 2007, defines redundancy as the loss of a job or occupation through no fault of an employee, happening mostly where the services of the said employee are no longer needed. However, no similar studies on the effects of retrenchment on performance of survivors have been conducted particularly in k.
The kenyan employment act 2007 defines retrenchment as the loss of a job or occupation through no fault of the employee. It concentrated on the effect of retrenchment on the survivor those who remain in the organization after the retrenchment, and on the organization. This case study utilised questionnaire as a data collection tool to. Retrenchment is the process by which staff is reduced to cull redundant employees and reduce the wage bill. Pdf the study examined the postretrenchment effects on employees using the case of the telkom kenya.
The civil service retrenchment programme implemented in 2000 had great social and economic implications on the lives of different social groups in nakuru town, kenya. The impact of retrenchmentredundancy on employees that. To identify how the motivational levels of employees have been affected by retrenchment process. A retrenchment procedure is carried out when the company has squandered a vast amount of money into something irretrievable. Although kenya airways has so far sent home only 80 employees, it plans to lay off 600 others in its second phase of retrenchment, making it the. Pdf effects of retrenchment on the morale and job security of. It was set to be effected from 2016 but was put off by the presidency, a senior officer in the presidency told the star on thursday. Retrenchment strategy advantages and disadvantages wisestep. Implications of retrenchment on human resource personnel. Employers must consult all the relevant parties when.
Effects of retrenchment on the motivation and loyalty of. Free retrenchment letter template south africa please amharic the most phone and don t windows individual configurations for every device you own in itinerary person, open the short list and discussion in unopened mode. To find out the perceptions of kbl staff towards the retrenchment process. The employer must also prove that heshe has shared with the targeted employees or their representatives all documentary and. The effect of the global recession continues to stifle the growth and profitability of a copious numbers of corporate entities which is evident from the restructuring and retrenchment schemes which continue to move through various business sectors countrywide. Termination notice period, severance pay at work in kenya. Telkom kenya tkl started retrenching in may 2006 in preparation for privatization. These are defined as requirements based on economic. Several civil servants will be retrenchment beginning february 2018. Termination notice period, pay, terminal benefits in kenya. Effects of retrenchment on the morale and job security of.
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