Labour Institutions Act

Section 1. Short title Section This Act may be cited as the Labour Institutions Act.

Section 3. Interpretation Section an heir, successor, assignee or transferor of an employer; or

Section 4. Application Section 4(1)(a) the defence forces or the reserve as respectively defined in the Kenya Defence Forces Act (Cap. 199); Section 4(1)(b) the National Youth Service. Section 4(2) The Cabinet Secretary may, on the recommendation of the Board and after taking account of all conventions and other international instruments ratified by Kenya, by order, exclude from the application of all or part of this Act limited categories of employed persons in respect of whom special problems of a substantial nature arise. Section 4(3) The Cabinet Secretary may, after consultation with the Board, by order exclude from the application of all or part of this Act, categories of employed persons whose terms and conditions of employment are governed by special arrangements, provided those arrangements afford protection that is equivalent to or better than that part of the Act from which those categories are being excluded.

Section 5. Establishment of the Board Section There is established the National Labour Board.

Section 6. Composition of the Board Section 6(1)(a) a chairperson who has experience and expertise in labour relation matters; Section 6(1)(b) the General Secretary of the most representative federation of trade unions; Section 6(1)(c) the Chief Executive of the most representative federation of employers’ organisation; Section 6(1)(d) two persons appointed from nominees of the most representative federation of employers’ organisation dealing with labour matters; Section 6(1)(e) two persons appointed from nominees of the most representative federation of trade unions; Section 6(1)(f) not more than two other independent members; Section 6(1)(g) the Director of Employment; Section 6(1)(h) the Director of Micro and Small Enterprise Development; Section 6(1)(i) the Director of Occupational Safety and Health Services; Section 6(1)(j) the Director of Industrial Training; Section 6(1)(k) the Registrar of the Employment and Labour Relations Court; and Section 6(1)(l) the Registrar of Trade Unions. Section 6(2) The provisions of the Schedule shall apply with respect to the Board. Section 6(3) The Cabinet Secretary may on the advice of the Board, amend the Schedule.

Section 7. Functions of the Board Section 7(1)(a) all matters concerning employment and labour; Section 7(1)(b) legislation affecting employment and labour; Section 7(1)(c) any matter relating to labour relations and trade unionism; Section 7(1)(d) any issue arising from the International Labour Organisation and the International Labour Organisation Conventions; Section 7(1)(e) codes of good practice; Section 7(1)(f) any issue raised by an international or regional association of states of which Kenya is a member; Section 7(1)(g) systems of labour inspection and the administration of the labour laws; Section 7(1)(h) any aspect of public employment services, vocational guidance, vocational training and the employment of persons with disabilities; Section 7(1)(i) the formation and development of policies designed to promote the granting of paid educational leave to workers for the purpose of training, trade union social and civic education and trade union education; Section 7(1)(j) the general state of employment, training and manpower development in the country; Section 7(1)(k) productivity measurement and improvement; Section 7(1)(l) the appointment of wages councils; Section 7(1)(...

Section 8. Committees of the Board Section 8(1)(a) Work Permits Committee; Section 8(1)(b) National Manpower Development Committee; Section 8(1)(c) Trade Disputes Committee; Section 8(1)(d) Productivity Committee; and Section 8(1)(e) such other committees or panels as are necessary for the performance of the Board’s functions. Section 8(2) The Board may, with the approval of the Cabinet Secretary, co-opt into the membership of the committees established under this section other persons whose knowledge and expertise are necessary for the functions of the committees or the Board.

Section 9. Remuneration of members Section There shall be paid to the Chairperson and members of the Board such remuneration, fees or allowances for expenses as the Cabinet Secretary in consultation with the Cabinet Secretary in charge of Finance, may determine.

Section 10. Secretary and officers of Board Section shall be the secretary to the Board; and

Section 11.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 12.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 13.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 14.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 15.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 16.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 17.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 18.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 19.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 20.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 21.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 22.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 23.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 24.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 25.[Repealed by ActNo. 20 of 2011, s. 31]

Section 26.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 27.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 28. Appointment of Committee of Inquiry Section 28(1) The Cabinet Secretary, may by notice in the Gazette , appoint a Committee of Inquiry to inquire into any matter which appears to the Cabinet Secretary to be connected with or relevant to any trade dispute or to trade disputes in general, or to trade disputes of any type or class, whether or not any such dispute has been reported to the Cabinet Secretary under this Act. Section 28(2) Where the Cabinet Secretary has referred any matter to the Committee of Inquiry under subsection (1), the Cabinet Secretary may refer to the Committee of Inquiry any other matter which in his opinion ought to be so referred. Section 28(3) A Committee of Inquiry shall consist of three or more persons including a Chairperson, as the Cabinet Secretary deems fit to appoint and the Cabinet Secretary may appoint a public officer to be the secretary of the Committee of Inquiry. Section 28(4) A Committee of Inquiry consisting of three or more persons may act notwithstanding any vacancy in their number.

Section 29. Report of Committee of Inquiry Section 29(1) A Committee of Inquiry shall inquire into and report on any matter referred to it under section 28 and shall submit a report on the matter to the Cabinet Secretary. Section 29(2) Subject to section 24 , the Cabinet Secretary may order the publication of any report made by a Committee of Inquiry in whole or in part and in such manner and at such time as the Cabinet Secretary deems fit.

Section 30. Appointment of Commissioner for Labour, Director of Employment and other officers Section 30(1)(a) a Commissioner for Labour; Section 30(1)(b) a Director of Employment; and Section 30(1)(c) such other officers as may be necessary for purposes of administration of laws relating to labour and employment. Section 30(2)(a) labour officers; Section 30(2)(b) employment officers; or Section 30(2)(c) medical officers. Section 30(3) The persons appointed under subsections (1) and (2) shall be authorised officers for purposes of this Act.

Section 31. Appointment of Registrar, deputy registrar and assistant registrars of trade unions Section 31(1) The Cabinet Secretary shall appoint a Registrar of Trade Unions who shall be responsible for the registration and regulation of trade unions, employers’ organisations and federations. Section 31(2) The Cabinet Secretary may appoint a deputy registrar of trade unions, assistant registrars of trade unions and such other officers as may be required for the purposes of this Act. Section 31(3) The Registrar of Trade Unions shall, in the exercise of his powers relating to the registration and regulation of trade unions, act on the advice of the Board.

Section 32. Delegation Section 32(1) The Commissioner for Labour may, in writing, delegate to any labour officer any of the Commissioner’s powers, functions and duties. Section 32(2) The Director of Employment may in writing, delegate to any employment officer any of the Director’s powers, functions and duties. Section 32(3) The Registrar of Trade Unions may, in writing delegate to the Deputy Registrar or Assistant Registrars any of the Registrar’s powers, functions and duties. Section 32(4)(a) attach conditions to a delegation and may amend or revoke a delegation at any time; and Section 32(4)(b) vary or set aside any decision made by a person acting on delegation under subsections (1), (2) and (3).

Section 33. Certificate of authority for authorised officer Section 33(1)(a) the Commissioner for Labour, in the case of a labour officer; Section 33(1)(b) the Director of Employment, in the case of an employment officer; and Section 33(1)(c) the Director of Medical Services, in the case of a medical officer. Section 33(2) When performing duties under this Act, an authorised officer, if reasonably requested to do so by any person affected, shall produce his certificate of appointment to that person.

Section 34. Powers of entry to premises by authorised officer Section 34(1) An authorised officer may, either alone or in the presence of another person, enter any premises or place where persons are, or may be, employed for the purpose of performing his duties as specified under this Act or any other labour law. Section 34(2) An authorised officer shall, on the occasion of an inspection or visit authorised by or under the provisions of this Act, notify the employer or his representative of his presence for that purpose at the first practicable opportunity, unless it is considered by the authorised officer concerned that the notification may be prejudicial to the performance of his duties or otherwise likely to defeat the object thereof.

Section 35. Powers of labour officer Section 35(1)(a) require the production of wage sheets or other employment records kept by an employer, and records of payments made to outworkers by persons giving out work, and any other such records as are required by any labour law or wages order to be kept by employers, and to inspect and examine those sheets or records and copy any material part thereof; Section 35(1)(b) require any person giving out work and any out-worker to give any information which is in that person’s power to give with respect to the names and addresses of the persons to whom the work is given or from whom the work is received and with respect to the payments to be made for the work; Section 35(1)(c) inspect and copy any material part of any list of outworkers kept by an employer or other person giving out work to outworkers; and Section 35(1)(d) examine, either alone or in the presence of any other person, with respect to any matter under Part VI, any person whom the labour officer has reasonable cause to believe to be or to have been an employee to whom a wages order applies or applied or the employer of any such person or a servant or agent of the employer employe...

Section 36. Powers of employment officer Section 36(1) An authorised officer may, for the purposes of collecting labour market data, exercise the powers conferred upon a labour officer by section 25 (1)(a) to (c), (f) and (g). Section 36(2) Where an employment officer seizes a register, record, book or other document in the performance of the employment officers’ duties, the employment officer shall give to the employer or his representative a receipt in respect of such register, record, book or other document in the prescribed form.

Section 37. Powers of medical officer Section order an employee who, in the opinion of the medical officer, is sick and for whom the conditions prevailing at the place of employment are not conducive to the rapid recovery of his health or strength, to return to the place of work or to proceed to hospital, and in that case the employer shall at the earliest opportunity and at his own expense send the employee to the place of work or to a hospital, as the case may be;

Section 38. Obstructing an authorised officer Section wilfully obstructs or hinders an authorised officer in the exercise of any power conferred by this Act or any rules made under this Act; or

Section 39. Offences by companies, etc. Section 39(1) Where an offence under this Act is committed by a company, association or body of persons, corporate or incorporate or by a public body, and the offence is proved to have been committed with the consent or connivance, or to have been facilitated by any neglect on the part of any director, Chairperson, manager, secretary or other officer employed by such company or association or body of persons or public body, that director, Chairperson, manager, secretary or other officer shall be deemed to have committed an offence. Section 39(2) In any proceedings under this Act, it shall be sufficient in the charge or information to allege the nature of any employment to which the charge relates and to state the name of the ostensible employer and the burden of proving that the employment is not such as alleged or that the employers specified in the charge or information is not the actual employer shall lie upon the person or public body alleging that fact.

Section 40. Evidence Section Where an entry is required by this Act to be made in a register or written record, the entry made by an employee or on his behalf shall be admissible as evidence of the fact therein stated.

Section 41. Confidentiality Section 41(1) Any authorised officer or other person who is or has been engaged in the administration of this Act, who discloses, except for the purposes of the exercise of his functions or when required to do so by a court or under any written law, any information acquired by him in the exercise or purported exercise of his functions under this Act to any other person commits an offence and shall on conviction be liable to a fine not exceeding one hundred thousand shillings or to imprisonment for a term not exceeding six months, or to both. Section 41(2)(a) for the purpose of any criminal proceedings; Section 41(2)(b) for the purpose of the proper administration of this Act; or Section 41(2)(c) in accordance with any written law.

Section 42. Annual report Section 42(1) The Commissioner for Labour and the Director of Employment shall, not later than the thirtieth of April in each year, prepare and publish an annual report of the activities undertaken in their respective departments. Section 42(2)(a) development with regard to relevant laws and regulations; Section 42(2)(b) the staff under the jurisdiction of the Commissioner for Labour; Section 42(2)(c) statistics of places of work to be inspected and number of workers employed therein; Section 42(2)(d) findings in the course of inspection; Section 42(2)(e) statistics of industrial accidents and occupational diseases; Section 42(2)(f) statistics of persons with disabilities in work places and any aids being provided by the employer; Section 42(2)(g) statistics of proceedings brought before the Employment and Labour Relations Court or other courts and their disposal; and Section 42(2)(h) statistics of stoppages of work in various sectors of the industry. Section 42(3)(a) the staff under the jurisdiction of the Director; Section 42(3)(b) productivity level; and Section 42(3)(c) labour market information and employment trends.

Section 43. Establishment of wages councils Section 43(1)(a) a General Wages Council; Section 43(1)(b) an Agricultural Wages Council; and Section 43(1)(c) an Export Processing Zones Wages Council. Section 43(2)(a) the remuneration and other conditions of employment of any category of employees in any sector is not adequately regulated by collective agreements; and Section 43(2)(b) it may be expedient to set minimum wages and other conditions of employment in respect of employees in those sectors. Section 43(3)(a) employees in a sector, or part of a sector, either nationally or within a specific area; or Section 43(3)(b) one or more specified categories of employees, either nationally or within specific sectors or areas. Section 43(4)(a) specifying the terms of reference of the wages council; Section 43(4)(b) the names of persons appointed as members of the wages council; Section 43(4)(c) stipulating the period in which the wages council is required to investigate and prepare a report for the Cabinet Secretary; and Section 43(4)(d) inviting representations from interested parties. Section 43(5)(a) a chairperson; Section 43(5)(b) not more than three members nominated by the Board rep...

Section 44. Functions of wages council Section 44(2) Recommendations made to the Cabinet Secretary in accordance with subsection (1)(c) may include recommendations on any matter that the Cabinet Secretary may include in a wages order. Section 44(3)(a) question any person who may be able to provide information relevant to the investigation; Section 44(3)(b) in writing, require any person to provide any information, book, document or object relevant to the investigation; or Section 44(3)(c) conduct public hearings. Section 44(4)(a) answer any question relevant to an investigation; or Section 44(4)(b) furnish any information, book or document requested by a wages council, Section 44(5)(a) the needs of employees and their families, taking into account the general level of wages in the country, the cost of living, social security benefits and the relative living standards of other social groups; Section 44(5)(b) economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment and the need to encourage investment; Section 44(5)(c) the ability of employers to carry on their business su...

Section 45. Publication of draft wages order Section 45(1)(a) specifying that the Cabinet Secretary proposes to make a wages order; Section 45(1)(b) specifying where copies of a draft of the wages order can be obtained; and Section 45(1)(c) inviting comments within a reasonable period on the draft wages order, which may not be less than thirty days from the publication of the notice. Section 45(2)(a) in the Gazette ; and Section 45(2)(b) at least twice, with an interval of at least seven but not more than fourteen days between each publication, in a newspaper with a wide circulation. Section 45(3) Any person may submit written comments on a draft wages order within the specified period. Section 45(4)(a) the specific grounds of objection; and Section 45(4)(b) the deletions, additions or modifications proposed. Section 45(5) If no objections are received, the Cabinet Secretary may publish a wages order in accordance with section 46 . Section 45(6)(a) shall refer the objections to the proposed wages order and any other comments submitted within the specified time period to the wages council for consideration; and Section 45(6)(b) may request the Board to consider and advise on the obj...

Section 46. Publication of wages order Section 46(1) The Cabinet Secretary may, after considering any further report of the wages council and any further advice from the Board, publish a wages order. Section 46(2)(a) published in the Gazette ; and Section 46(2)(b) be laid before the National Assembly within twenty-one days of publication. Section 46(3) On publishing a wages order, the Cabinet Secretary shall also publish notices in a newspaper in accordance with section 45 (2)(b) advising persons where a copy of the wages order can be obtained.

Section 47. Contents of wages order Section 47(1)(a) set minimum rates of remuneration; Section 47(1)(b) specify the matters in which an employer may make deductions from employee’s wages and specify the maximum amount of deductions; Section 47(1)(c) specify the maximum amount which may be deducted from an employee’s wages in respect of rations supplied by the employer; Section 47(1)(d) provide that an employer may only make a deduction in respect of rations supplied if authorised in writing by a labour officer; Section 47(1)(e) regulate task based work and piece work; Section 47(1)(f) regulate outwork, casual work and contract work; Section 47(1)(g) set minimum standards of sanitation for employees who reside on the premises of their employer; and Section 47(1)(h) regulate any other matter concerning remuneration or conditions of employment. Section 47(2)(a) make different provisions for different classes of employees; and Section 47(2)(b) contain provisions for the amendment or revocation of previous wages orders.

Section 48. Wages Order to constitute minimum terms of conditions of employment Section 48(1)(a) the minimum rates of remuneration or conditions of employment established in a wages order constitute a term of employment of any employee to whom the wages order applies and may not be varied by agreement; Section 48(1)(b) if the contract of an employee to whom a wages order applies provides for the payment of less remuneration than the statutory minimum remuneration, or does not provide for the conditions of employment prescribed in a wages regulation order or provides for less favourable conditions of employment, then the remuneration and conditions of employment established by the wages order shall be inserted in the contract in substitution for those terms. Section 48(2)(a) pay to an employee to whom a wages regulation order applies at least the statutory minimum remuneration; or Section 48(2)(b) provide an employee with the conditions of employment prescribed in the order, Section 48(3) If an employer is found guilty of an offence under subsection (2), the court may in addition to any other penalty order the employer to pay the employee the difference between the amount which ough...

Section 49. Power of officers to institute proceedings Section pay to the employee the statutory minimum remuneration; or

Section 50. Meaning of remuneration Section 50(1)(a) for the purpose of a contribution to any provident fund or superannuation scheme; Section 50(1)(b) in respect of rations supplied by an employer which the employer is permitted to make under a wages order; Section 50(1)(c) under any provision of any other written law for the time being in force which provides for or permits deductions to be made from an employee’s wages by the employer; or Section 50(1)(d) at the request in writing of the employee, for any purpose in which the employer has no direct or indirect beneficial interest. Section 50(2) Any reference in this Part to the "statutory minimum remuneration" means the minimum remuneration prescribed in a wages order.

Section 51. Employee waiting for work on employer’s premises Section an employee who resides on the premises of the employer shall not be deemed to be employed for any time during which the employee is present on the premises by reason only of the fact that he is so resident; and