Taking on your first employees is a milestone for any business. It also marks the point where employment law applies to you in full. The duties are manageable if you prepare for them early, and this checklist sets out the contracts, registrations and records that put a first hire on a proper footing.
What should be in place before your first employee starts?
Start with the contract itself. Under the Employment Act 2007, a contract of service lasting three months or more must be in writing, and the particulars must be given no later than two months after work begins. Issuing a signed contract on or before the first day is cleaner. A short job description, an agreed reporting line and a record of the agreed salary and pay date complete the core paperwork.
A checklist for the first week
- A signed written contract covering duties, pay, hours, leave and notice
- A job description and a clear reporting line
- The employee’s identification and PIN details for payroll
- A health and safety orientation, in line with the Occupational Safety and Health Act 2007
- Leave application forms and a simple system for approving them
Which registrations must a new employer complete?
Payroll obligations begin as soon as wages are paid. An employer registers with the Kenya Revenue Authority for PAYE, enrols the employee with the NSSF, and makes the required social health insurance arrangements. Registration is handled online through the relevant portals, and each agency publishes its current requirements. Setting these up before the first payslip avoids arrears and penalties later.
How do you keep records from day one?
The Employment Act 2007 expects employers to keep written records for each employee, and orderly files settle disputes quickly. Keep the signed contract, copies of identification, payslips, leave records and any warnings or appraisals in one place. A consistent file also makes it easier to answer queries from the labour office or the tax authority.
When should you seek advice?
A modest review of your contract template and payroll setup before the first offer goes out often prevents expensive arguments later. Our corporate advisory team assists with employment documents and employer compliance as part of the firm’s wider practice areas.
This article was written by Charles Muriu Mathenge, who advises businesses, HR directors and boards on corporate and commercial matters at CS Advocates LLP.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.