Right of employer to retrench an employee.

An employer has a right to retrench an employee. The Kenyan Employment Act 2007 defines retrenchment as the loss of a job or occupation through no fault of the employee. Retrenchments happen mostly where the services of the employee are no longer needed. In the case of Telkom Kenya Limited v John O. Ochanda [2013] eKLR. In its obiter, the court noted the following: “The law is very clear regarding the mechanism to be applied once a decision has been reached by an employer to retrench, restructure, downsize or declare redundancy.  An employer after securing the necessary agreement is obliged to pay all the normal terminal benefits and severance pay at a given rate for each year the employee has already served. “http://kenyalaw.org/caselaw/cases/view/96237/

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