Labour Institutions Act

This Act may be cited as the Labour Institutions Act.

Lists "an heir, successor, assignee or transferor of an employer; or" as text in the interpretation section.

The Cabinet Secretary may, by order and with Board involvement, exclude certain categories of employed persons or groups with special arrangements from all or part of the Act.

Section shall be the secretary to the Board.

The National Labour Board is established.

Section 6 lists the members that make up the National Labour Board and says the Schedule applies; the Cabinet Secretary may, on the advice of the Board, amend the Schedule.

Section 7 lists the functions and powers of the National Labour Board (the Board), including matters it addresses (employment, labour relations, codes, inspections, training, appointment of councils and court members), investigatory and research powers, and that the Board may co-opt participants (without voting rights) and determine its own procedure.

Section 8 lists committees of the Board and says the Board may, with the approval of the Cabinet Secretary, co-opt other persons into committee membership.

The Chairperson and members of the Board are to be paid remuneration, fees or allowances for expenses, and the Cabinet Secretary in consultation with the Cabinet Secretary in charge of Finance may determine those amounts.

Section 11 was repealed by ActNo. 20 of 2011, s. 31.

Section 12 has been repealed by Act No. 20 of 2011, s. 31.

Section 13 was repealed by ActNo. 20 of 2011, s. 31.

Section 14 was repealed by ActNo. 20 of 2011, s. 31.

Section 15 has been repealed.

Section 16 has been repealed.

Section 17 was repealed by Act No. 20 of 2011, s. 31.

Section 18 was repealed by Act No. 20 of 2011, s. 31.

Section 19 was repealed.

Section 20 is repealed by Act No. 20 of 2011, s. 31.

Section 21.[Repealed by ActNo. 20 of 2011, s. 31.]

Section 22 has been repealed by Act No. 20 of 2011, s. 31.

Section 23 has been repealed.

Section 24 has been repealed.

Section 25 has been repealed.

Section 26 is repealed.

Section 27 has been repealed (see Act No. 20 of 2011, s. 31).

The Cabinet Secretary may, by notice in the Gazette, appoint a Committee of Inquiry to investigate matters connected with trade disputes.

A Committee of Inquiry must investigate matters referred under section 28 and submit a report on the matter to the Cabinet Secretary.

Persons appointed under subsections (1) and (2) shall be authorised officers for the purposes of this Act.

The Cabinet Secretary must appoint a Registrar of Trade Unions; the Registrar is responsible for registering and regulating trade unions, employers' organisations and federations; the Cabinet Secretary may appoint deputy and assistant registrars; the Registrar must act on the advice of the Board when exercising registration and regulation powers.

Three senior labour officials may delegate any of their powers, functions and duties in writing to specified officers.

An authorised officer must produce their certificate of appointment to a person who reasonably requests it while the officer is performing duties under the Act.

Authorised officers may enter workplaces to perform their duties and must notify the employer or representative of their presence at the first practicable opportunity, unless notification would prejudice the inspection or defeat its object.

Section 35 lists specific powers of a labour officer to inspect records and premises, require information and documents, seize evidence, take samples, order cleanliness, initiate proceedings or appeals, and to take custody of children suspected of unlawful employment; subsection (2) requires a receipt be given when documents are seized.

Authorised officers may use specified labour-officer powers to collect labour market data; employment officers who seize registers or documents must give the employer or representative a receipt in the prescribed form.

A medical officer may order a sick employee to return to work or go to hospital; the employer must, at the earliest opportunity and at his own expense, send the employee to work or to a hospital.

Prohibits wilfully obstructing or hindering an authorised officer in the exercise of any power conferred by this Act or any rules made under this Act.

If an offence under this Act is committed by a company or public body and it is proved to have been committed with the consent, connivance or facilitated by neglect of a director, Chairperson, manager, secretary or other officer, that director, Chairperson, manager, secretary or other officer shall be deemed to have committed an offence.

An entry required by the Act in a register or written record, if made by an employee or on the employee's behalf, is admissible as evidence of the fact stated in it.

Authorised officers and others engaged in administering the Act must not disclose information acquired under the Act except when disclosing is for their functions, required by a court, or required by any written law; breach is an offence with fines up to one hundred thousand shillings or imprisonment up to six months, or both.

The Commissioner for Labour and the Director of Employment must prepare and publish an annual report each year by the thirtieth of April.

Section 43 establishes three types of wages councils, lists their possible scopes and compositions, requires nominated members to have relevant knowledge, allows a wages council to be appointed for three years, and permits the Cabinet Secretary (after consulting the Board) to vary notices under this section.

Wages councils may include recommendations to the Cabinet Secretary on matters that can be in a wages order; they can question persons, require written information or documents, and hold public hearings; persons must answerquestions and furnish requested information or documents.

The provision sets content requirements for a notice of a draft wages order, allows any person to submit written comments within the specified period, and permits the Cabinet Secretary to publish a wages order if no objections are received.

The Cabinet Secretary may publish a wages order after considering further reports and advice; when publishing a wages order the Cabinet Secretary must also publish newspaper notices advising where copies can be obtained.

Lists matters that a wages order may contain, including minimum rates of remuneration; permitted deductions and maximum amounts; deductions for employer‑supplied rations (and that such deductions require written authorisation by a labour officer); regulation of task‑based, piece, outwork, casual and contract work; minimum sanitation standards for employees residing on employer premises; and any other matters concerning remuneration or conditions of employment; allows different provisions for different classes of employees and for amendment or revocation of previous wages orders.

Wages orders set minimum terms and conditions of employment; employers must pay statutory minimum remuneration and provide prescribed conditions to covered employees; courts may order employers to pay shortfalls and consider prior contraventions within the preceding twelve months; no person may be liable to pay twice for the same cause.

Section title: "Power of officers to institute proceedings."

Defines "statutory minimum remuneration" as the minimum remuneration prescribed in a wages order.

An employee who lives on the employer's premises is not considered to be working merely because they reside there.

Employers must not receive a premium, except where the payment is within four weeks after the apprenticeship starts or at any time with a wages council's approval; contravening this is an offence and the court may fine the employer and order repayment.

Employers must keep records to show compliance with wages orders and must retain those records for at least three years; employers who contravene this section commit an offence.

Section 54 sets rules for criminal liability where an employee works for a person who is not the immediate employer: that other person can be deemed joint employer; an employer charged can bring another person before the court with at least three days' written notice; if the employer proves the offence was due to another's act that other person may be convicted; if the employer shows due diligence he shall be acquitted; prosecution and the alleged person may cross-examine and the court may order costs; a labour officer may proceed against the other person without first charging the employer when satisfied of certain conditions.

Establishes an Inter-ministerial Committee composed of five named ministries/offices and provides that an officer from the Ministry responsible for labour shall be its chairperson.

The Inter-ministerial Committee must advise the Cabinet Secretary responsible for labour on matters concerning work permits related to security issues.

Employment bureaus or agencies must get government approval before sending Kenyan citizens abroad for work and before employing foreigners in Kenya.

The Director must perform the other functions imposed or conferred on the Director by this Act or any other written law.

An application for registration of an employment agency must be made to the Director in the prescribed form; applications are vetted by the Inter-Ministerial Committee; the Director may consider other matters, may refuse an application (giving reasons), and aggrieved persons may appeal to the Employment and Labour Relations Court.

Persons operating employment agencies must retain prescribed records for three years, produce them on demand to an employment officer during that period, and furnish prescribed statistical information to the Director; they must not charge fees higher than prescribed or charge fees unless provided for in regulations.

Employment officers may enter and inspect employment agency premises without notice at reasonable daytime hours and may require, examine, copy or seize books and documents; they must exercise reasonable care, and employers must provide reasonable facilities for inspections.

Section 59 treats contravention of any provision of this Part or of the terms or conditions of any certificate of registration issued under section 56(2) as offences; subsection (2) provides that nothing done to prevent disruption in the smooth and efficient running of an employment agency shall be held to be in contravention of section 58(4).

The Cabinet Secretary may make regulations necessary to give effect to, or for better administration of, this Part.

A person who contravenes any provision of this Act for which no specific penalty is provided is liable to a fine not exceeding fifty thousand shillings, or to imprisonment for a term not exceeding three months, or to both.

Rules prescribe anything which under this Act is to be or may be prescribed.

Written laws on labour matters operate subject to modifications needed to implement this Act, and where any law conflicts with this Act, this Act's provisions prevail.