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Global Policies -vs- Local Protections: When Foreign Employment Practices Meet Kenya Labour Law

Sep 9
4 min read

The modern workplace is increasingly becoming borderless. Kenyan employees now work remotely for foreign-based entities, often under contracts governed by foreign law and the particular entity’s global workplace policies.


This raises an important legal question: what happens when a foreign employer's policies conflict with mandatory Kenyan employment protections where the employee is based and working from Kenya? The answer is not always straightforward. Parties may agree to apply foreign law or adopt global HR policies, but such arrangements do not necessarily displace the protections an employee is entitled to under Kenyan law.


An international contract can still be connected to Kenya


Kenyan courts have recognised that an employment relationship may have an international character where, for instance, the employer is incorporated abroad while the employee performs the bulk of their duties in Kenya. In such cases, the courts look beyond the formal identity of the employer to the substance of where the relationship is actually rooted, including: the employee's habitual place of work, where remuneration is paid, and where tax and statutory deductions are administered.


This principle was applied in Dorcas Kemunto Wainaina v IPAS [2018] KEELRC 2065 (KLR), where the Employment and Labour Relations Court held that, despite the employer being US-based, the dominant features of the relationship connected it to Kenya. The case is a useful illustration of a wider point that a foreign-law clause in a contract does not, by itself, out the jurisdiction of Kenyan courts. Foreign-based employers should not assume that structuring a contract or policy abroad takes the relationship outside the reach of Kenyan law.


Global policies cannot override mandatory local protections


Foreign-based employers commonly rely on standardised global policies covering termination, working hours, leave, performance management, whistleblowing, conflicts of interest and employee conduct. These policies are typically drafted to comply with the law of the employer's headquarters, but once applied to staff working in Kenya, they must be measured against Kenya's mandatory statutory requirements.


For instance, global policies drafted in the US may contain provisions that are lawful in their jurisdiction but do not comply with the Kenyan law. Examples include


  • Employment “at will”;

  • Disciplinary procedures that allow termination without a formal hearing;

  • Notice provisions that allow shorter period than that provided under the Act; and

  • No notices or compensation on redundancy.


On the other hand, Kenya’s Employment Act for example, requires an employer contemplating termination for misconduct, poor performance or incapacity to explain the reason to the employee and give them an opportunity to respond. It further requires both a valid and fair reason for termination and compliance with a fair procedure. Wainaina V IPAS held that a global policy permitting termination without these safeguards cannot be relied on as a substitute for what Kenyan law demands.


Choice of law, jurisdiction and mandatory protection are distinct questions


A clause stating that a contract is governed by foreign law does not end the inquiry. Kenyan courts recognise that parties may choose the governing law, but will still weigh connecting factors e.g. where the employee actually works, and where pay and tax are administered, in deciding whether Kenyan courts have jurisdiction and whether mandatory local protections apply regardless of the chosen law.


Employers and employees should therefore keep three questions apart: the law governing the contract; the forum with jurisdiction to hear a dispute; and the mandatory protections that apply

where the work is actually performed. A contract can answer the first without resolving the other two as seen in Wainaina V IPAS.


Remote work has raised the stakes


The growth of remote employment has complicated traditional assumptions about where employment takes place. A Kenyan employee may be employed by a company incorporated in

Europe, report to a manager in the United States, be paid through an international payroll provider, and perform all substantive work from Kenya. Here, the applicable legal framework turns on the substance of the relationship rather than the location of the employer's head office.


Kenya’s Employment Act also contains specific provisions on foreign contracts of service. It prescribes requirements around the form and attestation of certain foreign contracts, including compliance with Kenyan employment standards, a reminder that Parliament has long anticipated cross-border employment and legislated to protect Kenyan workers within it.


The risk for multinational employers


The principal risk for foreign-based employers is assuming a uniform global policy can be applied identically in every jurisdiction. A policy lawful where it was drafted may still expose an employer to liability in Kenya if implemented without regard to mandatory local requirements. In particular around termination, discrimination, statutory leave, remuneration and disciplinary process. Kenya’s Employment Act prohibits discrimination in training, promotion, terms and conditions, and termination, and this protection cannot be diluted by a global policy permitting practices unlawful under Kenyan law.


Practical guidance


For foreign-based employers, the better approach is not to abandon global policies and to localise their implementation. Additionally, they should ensure that contracts and local addenda clearly identify the applicable law, jurisdiction, statutory benefits and procedures that apply to Kenyan staff.


For employees, the existence of a foreign employer or an international contract should not be

assumed to remove Kenyan legal protections. It is worth examining the governing-law clause, the actual place of work, the contractual terms, and Kenya's mandatory employment requirements before assuming a global policy is the final word.


This article is for informational purposes only and does not constitute legal advice. For tailored advice, please reach out to us directly at sarinke@mckayadvocates.com


Author Vivian Ntinyari




4 Comments


hazil temno
3 days ago

Very practical piece. The point that a dismissal can be fully compliant with a head-office policy and still fail under Kenyan law is something a lot of regional HR teams only learn in court. The hearing requirement under the Employment Act is the classic trap, especially when global processes rely on written submissions or decisions made by a regional team. One sector where this must come up constantly is online gaming. Kenya has one of the biggest betting markets in Africa, and international operators like slot-raze.co.uk typically run HR from a head office abroad while hiring local customer support and compliance staff. A local addendum clarifying that Kenyan law prevails seems like the cheapest insurance any multinational could buy. Do…

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This article describes my situation almost exactly. I work from Nairobi as a remote customer support lead for an Australian company that runs australian online pokies platforms. My contract says it’s governed by the law of New South Wales, I’m paid through an international payroll provider, and the global handbook allows termination on two weeks’ notice with no hearing. Last year a colleague here was let go after a single video call, no written reasons, no chance to respond, and HR simply pointed to the global policy. Reading Wainaina v IPAS, it seems the real question is where the relationship is actually rooted, and in our case everything (the work, the PAYE deductions, NSSF, NHIF) happens in Kenya. Very useful…

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Roni Cray
Oct 09

Great insights on the importance of balancing global employment policies with local labour protections. The same principle of regulatory compliance applies to other online industries, including gaming platforms such as Caswino, where understanding the applicable rules and responsible participation are equally important. Thanks for highlighting the need to consider local legal requirements in an increasingly interconnected digital world.

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The distinction between global policies and mandatory local protections is especially important with remote work. A contract may be drafted abroad, but the employee’s actual place of work can still have major legal consequences. It’s a good reminder that standardised policies, much like twitter accounts for marketing, can’t simply be applied the same way everywhere without considering the local context.

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