Employee Consultation Before Redundancy

The requirement of consultation is not expressly provided in section 40 of the Employment Act, 2007. However, by dint of Article 2(6) of the Constitution, treaties and conventions ratified by Kenya form part of the law of Kenya. Kenya is a state party to the International Labour Organization (ILO) since 1964 and is therefore bound by the ILO conventions.

Article 113 of Recommendation No. 166 of the ILO Convention No. 158- Termination of Employment Convention, 1982, requires consultation between the employer or their representatives and the employee, before termination of their employment on grounds of redundancy.

Redundancy consultation is important for several reasons:

i. Legal requirements

Before making any redundancies, employers are frequently required by law to consult with employees or their representatives i.e. for those in unions with a CBA, they have to consult with the representative of the Union. Legal action and penalties may follow failure to do so.

ii. Fairness

The consultation gives staff members a voice in decision-making and can help guarantee a fair and open redundancy process. Additionally, it gives staff members the chance to voice their doubts and questions about the choice, which can help to calm their fears and uncertainties.

iii. Opportunity to explore alternative options

Redeployment, retraining, or reducing hours are a few examples of alternatives to redundancy that can be identified with the aid of consultation. By doing so, it may be possible to reduce the number of layoffs and give those affected a greater chance of finding new employment.

iv. Employee confidence

Employee engagement and confidence may be significantly impacted by redundancy. By giving workers a sense of control and participation in the decision-making process, consultation can help to lessen this effect.

In light of the above, it is very essential that Employers take redundancy consultation very seriously in order to ensure a fair and transparent process that minimizes litigation and the negative effects on employees.

How we can help

At CM SME Club, we provide valuable legal advice and guide businesses on the redundancy procedures including advising on the obligations of employers and conducting legal risks assessments to shield you from claims of unfair dismissal or discrimination. We will also help you come up with clear and comprehensive redundancy policies and procedures for your company. Subscribe today at https://cmsmeclub.com/ The requirement of consultation is not expressly provided in section 40 of the Employment Act, 2007. However, by dint of Article 2(6) of the Constitution, treaties and conventions ratified by Kenya form part of the law of Kenya. Kenya is a state party to the International Labour Organization (ILO) since 1964 and is therefore bound by the ILO conventions.