Employment

Unfair Dismissal: Your Rights & Compensation in Kenya

Feb 10, 2026 1 min read
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Was your employment terminated unfairly? Learn the legal procedure and how to sue for damages under the Employment Act.

What is Unfair Dismissal?

Under the Employment Act 2007, a dismissal is unfair if the employer cannot prove a valid reason for it, or if the process followed was procedurally unfair. Valid reasons for dismissal must relate to the employee's conduct, capacity, or the operational requirements of the business.

Your Rights When Dismissed

Every employee has the right to be heard before being dismissed. The employer must issue a notice of allegations in writing, give the employee an opportunity to respond (in person or in writing), and hold a disciplinary hearing before making a decision.

Procedural Requirements

Even where there is a valid reason for dismissal, the employer must follow a fair procedure. Failure to do so — such as dismissing an employee on the spot without a hearing — renders the dismissal procedurally unfair, even if the employee was genuinely guilty of misconduct.

Compensation You Can Claim

If the Employment and Labour Relations Court finds your dismissal unfair, you may be awarded: reinstatement to your former position; or compensation of up to 12 months' gross salary (or more in exceptional cases). You may also claim unpaid salary, leave days, and notice pay.

How to File a Claim

You must file your claim at the Employment and Labour Relations Court within three years of the date of dismissal. The process involves filing a memorandum of claim, serving it on your employer, and attending a mediation session before a full hearing.

Act Fast

Do not delay. Gather your employment contract, dismissal letter, payslips, and any correspondence with your employer. Contact us at Mutea Muthuri & Associates for a consultation on the strength of your claim.

Topics

unfair dismissal Kenya wrongful termination Kenya Employment Act Kenya compensation dismissal ELRC Kenya
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