All templatesSETTLEMENT AGREEMENT ON TERMINATION OF EMPLOYMENT
THIS SETTLEMENT AGREEMENT is made on the ______ day of ____________ 20____ BETWEEN Zawadi Textiles (Kenya) Limited ("the Employer") AND Ruth Achieng Odera ("the Employee").
1. Employment and Termination
The Employee has been employed by the Employer since 12 January 2019. The employment ends on 31 October 2026 by reason of redundancy.
2. Notice
The notice period is one month.
3. Final Dues
The Employer will pay the Employee the following final dues:
(a) Salary up to and including 31 October 2026: KES 95,000.
(b) Accrued but untaken leave of 14 days: KES 44,333.
(c) Severance pay: KES 332,500, calculated on the basis of fifteen (15) days' basic pay for each completed year of service, being seven (7) completed years, computed on the Employee's final basic salary of KES 95,000 per month.
(d) One month's salary in lieu of any shortfall in notice: KES 95,000.
(e) Certificate of service.
4. Settlement Payment
In addition to the final dues, the Employer will pay the Employee KES 120,000.
5. Full and Final Settlement
On receipt of the sums in this Agreement the Employee accepts them in full and final settlement of all claims arising from the employment and its termination, except rights that the law does not allow to be waived.
6. Certificate of Service
The Employer will give the Employee a certificate of service.
7. Notices
Work and employment
Separation and settlement agreement template (Kenya)
Also called: Termination Letter & Settlement Agreement
What it is for
Employer and employee agreeing the terms on which the job ends.
The Kenyan law it follows
- Employment Act Cap 226 — s.35 and s.36 (notice and payment in lieu), s.40 (redundancy: notices, selection, severance of not less than fifteen days' pay for each completed year), s.41 (hearing before termination for misconduct, poor performance or incapacity), s.51 (certificate of service)
Who prepares it
You can prepare this yourself. It is still wise to have an advocate read it before you sign, especially where a lot of money or a long commitment is involved.
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Sample separation and settlement agreement
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This is a sample for general information. It is not legal advice and may not suit your situation. Laws change, and a document has to fit your own facts; have an advocate check it before you rely on it.