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Why Reading Your Employment Contract Is No Longer Optional.

In today’s fast-changing labour market, securing a job offer often comes with excitement and urgency. Many employees sign employment contracts quickly, assuming the terms are standard or trusting verbal assurances from employers. However, an employment contract is a legally binding document that governs your rights, obligations, and exit from employment. In an era of rising labour disputes and strict compliance requirements, failing to read and understand contract clauses can lead to serious financial and legal consequences. This article explores why reading your employment contract is critical, the risks of ignoring its terms, and what Kenyan employment law requires.

Your employment contract defines your relationship with your employer from day one to exit. It sets out your role, salary, working hours, leave entitlements, disciplinary procedures, and how termination will be handled.

Why Your Employment Contract Matters

Under Kenyan employment law, specifically the Employment Act, 2007, any employment engagement lasting three months or more must be in writing. This legal requirement exists to ensure clarity and protect both parties. When disputes arise, labour officers and courts rely heavily on what is written in the contract—not on verbal assurances or assumptions.

Most employees focus on salary and job title, but some of the most important clauses are often overlooked.

Termination and notice clauses determine how much notice you or your employer must give and whether payment in lieu of notice applies.

Disciplinary procedures explain how misconduct is handled and whether due process is followed.

Working hours and overtime clauses define whether extra hours are compensated.

Confidentiality and non-compete clauses may restrict what you can do after leaving the organization.

The Clauses Many Employees Ignore (Until It’s Too Late)

Many people only discover these clauses when facing disciplinary action or termination—when it’s already too late to negotiate.

Simply put, if it’s not written, it’s difficult to enforce. 


The Benefits of Reading Your Contract

Reading your employment contract gives you clarity and confidence. You know your rights, your responsibilities, and your limits. This knowledge protects you from unfair treatment, unlawful deductions, and denied benefits.

Understanding your contract also puts you in a stronger position during disputes. You can engage HR or management using facts and documented terms rather than emotions or assumptions. It encourages professionalism and accountability on both sides.

Most importantly, reading your contract allows you to make informed decisions about your career.

The Risks of Not Reading Contract Clauses

Not reading your contract comes at a cost. Many employees are shocked by clauses they unknowingly agreed to—especially during termination or restructuring.

Courts rarely accept ignorance as a defence. Once you sign, you are legally bound. Financial losses can arise from misunderstood notice periods, deductions, or penalty clauses. In some cases, restrictive clauses can limit future employment opportunities and career growth.

In short, what you don’t read can hurt you.

Final Thoughts

Before you sign, slow down. Read the contract. Ask questions. Seek clarification. If something is unclear, request an explanation or amendment.

Your employment contract shapes how you work, how you are managed, and how you exit. In an era where labour disputes are common and legal costs are high, informed consent is essential.

A job offer is important—but understanding what you are signing is even more important.

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