The employment contract: mitigating covid 19 risks as a business owner

April 29, 2020

The ongoing covid-19 pandemic necessitates that all business owners re-assess their risks and exposure in all operational areas of their businesses. It is essential that all small business owners and startup founders stay current with the constantly changing developments and government guidelines and what these may mean for your legal obligations, and your business at this moment. Accordingly, we have put together a series of mini info-sheets that you can quickly glance at to help you find your bearing during this period.

Most businesses are currently exploring ways to significantly reduce costs and operational expenses to enable them stay afloat. Fact. One such operational area in any business involves human resource. As a small business owner in the private sector, you may be aware that one of the questions your employee keeps thinking about is what will become of their job should this pandemic go on for a while.  Or maybe,

Does my employment contract cover a scenario such as covid19?

Well the process of determining your legal obligations as an employer can be quite flawless if you know where to look, and what to look out for.  Bearing in mind that recruiting and training a team is a long term investment for any business, you can consider discussing the following options with your employees during this pandemic:

  1. Leave of absence

This refers to a situation where an employee goes on an unpaid leave for a defined period of time. Notably, the Employment Act, (2007) was recently amended to accommodate this as an option in a standard employment contract in Kenya.

  1. Working remotely or Flexible working hours/ Shifts

Consider encouraging location independent work mode or in the alternative, having your employees work in shifts. Come up with a duty roaster and have them work in shifts in flexi hours.

  1. Paid leave

Having all employees proceed on paid leave is also an option that you may discuss with your employees during this period, especially where there are outstanding and earned days.

  1. Salary reductions

You can also consider re-negotiating the terms of engagement with your employees for a defined period of time.

  1. Maintaining all the statutory and occupational safety and health advisories at the work place as required by the Ministry of Health and the World Health Organisation for your employees who have to be physically present at the work place.

Lastly, you may also consider reviewing and updating your business policies and manuals, and employee contracts to reflect the above. Please click here to learn more about your legal obligations , employee contracts and how to review any contract with ease.