Quitting Your Job? Know Your Legal Obligations

“I quit!” It’s a line that feels cinematic and satisfying - until real life kicks in. When you land a new job or decide to launch your own business, the temptation to storm out and slam the door might cross your mind. But beyond the drama, resigning from a job carries legal and financial consequences that can affect both employees and employers. So, how should you leave - quietly and professionally, or with a grand exit? Let’s explore the legal realities of resignation under Kenyan employment law and beyond.

The Importance of the Notice Period

In Kenya, the Employment Act mandates that either party, employer or employee, must provide notice before ending a contract, unless termination stems from gross misconduct. Notice periods typically range from one to three months, depending on your employment agreement. Failing to serve this period isn’t just a breach of professionalism; it can cost you. Employees who resign without notice may owe their employer an amount equivalent to the salary for that period. Employers often recover this by deducting it from your final paycheck or accrued benefits.

But what if you’re eager to start your next chapter? During the notice period, you’re still expected to perform your duties, unless your employer opts to pay you out and release you early. A South African case, Lottering and Others v Stellenbosch Municipality, clarified that employers can choose whether you work the notice or receive payment in lieu, as long as the decision is reasonable and communicated clearly.

When Employers Take Legal Action

Most employers won’t escalate a sudden resignation to court - they’ll simply adjust your final pay. However, in some scenarios, they might pursue stronger measures. For example:

• You resign right after receiving your salary, leaving no funds for the employer to recover notice pay.
• Your abrupt exit disrupts a critical project, causing measurable financial loss.

In Kenya, the case of Charitable Trust t/a Premier Academy v Thomas Ndani Njuguna [2020] eKLR illustrates this tension. A school sued a teacher for failing to serve a three-month notice period, demanding KES 452,415 in lieu of notice. The teacher countered, claiming the notice clause was unfair. The court ruled in his favor, noting that enforcing the full notice would resemble forced labor. This is an important precedent for employees.

Similarly, in South Africa, the case of SA Music Rights Organisation Limited (SAMRO) v Mphatsoe confirmed that employers can sue for damages if an employee’s failure to serve notice causes proven losses. The catch? Employers must substantiate their financial harm.

Constructive Dismissal: A Game-Changer

What if you’re quitting because your workplace has become unbearable? If you can prove constructive dismissal, where an employer’s actions force you to resign, then your obligations shift. Successfully demonstrating this in court means you’re not liable for payment in lieu of notice. This legal protection is critical for employees enduring toxic or hostile work environments.

Protecting Your Benefits

Employees often worry that resigning without notice could jeopardize their gratuity, provident fund, or other benefits. Under Kenyan law, these entitlements are generally safeguarded and cannot be withheld unless your contract explicitly permits it. Additionally, employers are legally required to issue a Certificate of Service, regardless of how you leave. Withholding it is a violation of your rights.

The Employer’s Perspective

For employers, a sudden resignation can disrupt operations, especially if the departing employee is a key player. While salary deductions are the norm, legal action becomes an option when losses are significant. However, pursuing a lawsuit requires evidence of harm - a high bar to meet in practice.

How to Resign the Right Way

Whether you’re an employee chasing a new opportunity or an employer managing a departure, professionalism and legal awareness are key. For employees, serving your notice period, or negotiating an early exit, preserves your reputation and finances. For employers, understanding your options prevents costly disputes.

Quitting a job doesn’t have to be a legal minefield. By knowing your rights and obligations under employment law, you can exit on solid ground. After all, how you leave a role can shape your career, your finances, and even your legal standing.

Adapted from: Mugambi Njuki