ENHANCING

Private Schools BUSINESS VALUE

Through strategic
Human Resource Management Practices

Presented to the members of:

Presented By:
John Njenga,
4th October 2018 Director
Excelon Limited,
Venue: Eldoret P.O Box 26490 – 00100, Nairobi
Muthaiga Suites – 4th Floor
info@excelon.co.ke
www.excelon.co.ke
0735860183
Presentation Outline:

1. Introduction.
2. Objectives of the presentation
3. HR Management in Kenya – Compliance Requirements & Rights
4. Private Schools challenges related to Human Resource Management
5. Strategic HR opportunity areas that can enhance business value
 About the Facilitator
John Njenga
• 15 Years of experience
• Work and Consultancy experience in Large Horticultural, Manufacturing, Hospitality, Social
Securities, Parastatals, Banking and Educational organizations
• Exposure in HRM environments both in Kenya and Tanzania.
• HR and Training Manager - Finlays Horticulture and Batian Flowers
• Industrial Relations Manager – Unilever East Africa
• HR Manager – Equity Bank
• HR General Manager at ARM - Rhino Cement covering Kenya and Tanzania
• Experienced Trainer who has undergone Advanced TOT courses.
• Consultant - Ethical Trading Initiative (Supporting Social and Ethical) standards
• Well versed with labour laws, staff engagement, communication, performance management as
well correct dispute and discipline handling
• Currently working at Excelon Limited as Director – Operations and Business Development
Introduction

Beyond Excellence
Location and Address
P.O Box 26490 – 00100, Nairobi
Muthaiga Suites – 4th Floor
info@excelon.co.ke
www.excelon.co.ke
0735860183
We have served: Beyond Excellence
Objectives of the presentation:

Targeting Private Schools Business Owners and Managers, this presentation aims to:

1. Enhance the understanding of the Kenyan Labour Laws and Compliance

requirements.
2. Review the business risks and costs associated with Labour laws and how they
impact on business performance.
3. Examine the HR challenges faced by Private Schools in day to day
management of employees.
4. Achieving business value and continuity through Best HR Management
practices in private schools
Indicators of Excellence in Private Schools

1. Increased students
2. Retained workforce
3. Positive customer feedback (Satisfaction surveys)
4. Zero avoidable costs
5. Increased employment interests (A preferred employer)
The Kenyan Labour Laws

Labour laws refers to a body of legal rules which regulates various

relationships…
References are made from:-
 The Constitution of Kenya
 Legislation
 Judicial precedent – (court decisions) -
 legal writing- views of legal authors are not binding but
persuasive to courts
There are nine (9) core labour legislation

1. Employment Act, 2007 (replaced Employment Act, Cap 226 and Regulation of Wages and
Conditions of Employment Act, Chapter 229)
2. Labour Relations Act, 2007 (replaced the Trade Unions Act, Chapter 233 and the Trade Disputes Act,
Chapter 234)
3. Work Injury Benefits Act, 2007 (replaced the Workmen’s Compensation Act, Chapter 236)
4. Occupational Safety and Health Act, 2007 (replaced the Factories and Other Places of Work Act,
Chapter 514)
5. Labour Institutions Act, 2007
6. National Social Security Fund Act, Chapter 258
7. National Hospital Insurance Fund Act, Chapter 255
8. Industrial Training Act, Chapter 237 (Revised 2011)
9. Retirement Benefits Act
EMPLOYMENT ACT,2007 - Highlights

1. Provides the basic terms applicable to all employment contracts

2. General principles on ;
1. prohibition against forced labour
2. Discrimination in employment
3. Sexual harassment(20 or more employees)
3. Employment relationship (nature and types of employment)
4. Rights of employees and obligations of employers
5. Employment separation(termination, resignation, dismissal,
redundancy, retirement, death) and benefits upon termination
6. Protection of children from worst forms of child labour, minimum
age of employment and prosecution for contravention
7. Employment records and employment management
8. Dispute settlement procedure
LABOUR RELATIONS ACT, 2007 - Highlights

1. Provides for freedom of association for both employers and

workers.
2. Collection of union dues including agency fees, and
subscriptions for employers organizations
3. Recognition of trade unions and Collective bargaining
4. Worker representatives
5. Dispute resolution
6. Strikes and lockouts
7. Powers of the industrial court
WORK INJURY BENEFITS ACT, 2007 - Highlights
1. Provides for compensation of all employees for work related injury or
occupational diseases
2. Compensation of employees for occupational accidents or diseases resulting
in disablement or death
3. Denial of compensation in the case of
1. injury due to deliberate and willful misconduct(unless injury is serious-more than 40% disability or
death)
2. employee willfully fails to disclose a medical condition that aggravates injury or disease, Employee
fails to present himself for medical treatment
4. Employee not to be denied compensation by threats
5. Compensation not to be alienated, Maximum compensation based on 96
months earnings
6. Temporary disability & Permanent DIsability
7. Payment of compensation to Director within 90days from date of assessment
and to injured employee or dependents within 30 days.
 OCCUPATIONAL SAFETY AND HEALTH ACT, 2007

1. Applies in any place where a person is at work

2. Purpose of the Act is to:
1. Secure the safety, health and welfare of persons at work
2. Protect persons other than persons at work from risks risks arising out of
the activities of persons at work
3. Provides for duties of occupiers (who include employers) workers, self
employed people, suppliers, designers, importers, manufacturers
4. Special provisions for health and welfare of workers, machinery, chemical
and safety,
 LABOUR INSTITUTIONS ACT, 2007

1. Provides for the creation and management of all institutions dealing with
labour including
a. The National Labour Board
b. Industrial Court
c. Committee of Inquiry
d. Appointment of Commissioner for Labour, Director of Employment,
Registrar and Deputy Registrars of Industrial Court and Registrar of Trade
Unions
e. Wages Councils and wages orders
f. Employment Agencies
 NATIONAL SOCIAL SECURITY FUND ACT (CAP 258)

1. Establishes the NSSF a compulsory contributory social security scheme

 NATIONAL HOSPITAL INSURANCE FUND ACT (CAP 255)

1. Establishes the NHIF, an insurance fund which:

• Caters for medical insurance
• Pays for expenses incurred by a contributor, and his or her spouse and
dependant children
HR-BUSINESS RELATED RISKS AREAS

1. Legal
2. Business Environment
3. Management
4. Employee reliability
5. Employee Performance/output
LEGAL

The labour laws poses a major threat to employers, when they are not fully
observed. Violation of labour laws can result to hefty fines or imprisonment.

• Employment Contracts • Overtime

• Job Descriptions • Dismissal
• Leave • Unfair Termination
• Employee Records • Performance Management
• Termination of employment • Sexual Harassment
• Working Hours • Discrimination
• Rest day • Salaries and Wages
• Age limits • Freedom of association
• Injuries and accidents
CASE STUDIES – INDUSTRIAL COURT
Some time back on 22 .09. 2015 a cook from Meru High School filed a statement against the school . The claimant prayed for:
a. A declaration that the termination of employment of the claimant was unfair, unprocedural, wrongful, and illegal.
b. Damages for wrongful, unlawful termination of employment.
c. Cost of the claim.
d. Any other relief the honorable court may deem necessary to award.

The respondent filed a statement of defense on 14.10.2015 through Gikunda Anampiu & Company Advocates. The respondent
prayed that the suit be dismissed with costs. The respondent employed the claimant to serve as a cook effective 6.06.2008.

In 2014 the claimant received a job termination letter for being uncooperative in the school. The latter stated that the claimant
had been caught with some lost items from the school. On the same date the claimant testified he received another letter titled
“third and last Warning” about stolen foodstuffs. He was therefore directed to leave the school compound. The letter suspended
the claimant from his job effective 4.08.2014.

The court considered the material on record. The allegations made against the claimant entailed the seriousness of the theft.
The respondent made no criminal report against the claimant in view of the allegations. The court finds that all allegations were
empty without supporting evidence to justify the dismissal.
The court therefore returns that claimant is entitled to the remedies as prayed for. In conclusion the judgment was:
•The job termination of employment of the claimant by the respondent was unprocedural, wrongful and illegal
•The respondent pay the claimant Ksh. 113,440.00
•The respondent to pay the claimant’s cost of the suit
CASE STUDIES – INDUSTRIAL COURT
A Claimant filed her Statement of Claim on 5th May 2016. She states she was employed by the Respondent, a
private school based in Mombasa, as a Nursery School Teacher. Initially she was employed on temporary basis
and was confirmed later on 13.05. 2013. She received a letter from the Respondent on11.07.2018 informing
her that her contract had expired. She contends that termination was without notice and valid reason. She was
not paid her terminal dues. She earned a monthly salary of Kshs. 17,000.

The Respondent filed its Statement of Response on 7th June 2016. In general the Respondent denies nearly all
the averments made by the Claimant, including the fact that she was employed by the Respondent, and her
contract terminated by the Respondent. Alternatively, it is Respondent’s position that the Claimant must have
been the author of her own misfortune.

Court findings:
The documents availed to the Court indicate the Claimant was employed by the Respondent as a Kindergarten
Teacher. What reads like a Certificate of Service , states the Claimant was employed on 13.05.2013, and left on
11.07. 2015. The Court is not able to conclude that she had 17 months to expiry, on the date of termination.

Court judgment
) Termination was unfair.
b) The Respondent shall pay to the Claimant the equivalent of 9 ½ months’ gross salary at Kshs. 161,500
in compensation for unfair termination; and 1 month salary in lieu of notice at Kshs. 17,000- total Kshs
178,500.
c) Costs to the Claimant.
d) Interest granted at 14% per annum from the date of Judgment till payment is made
BUSINESS ENVIRONMENT RISKS

This includes:
1. Competition for talent
2. Demands for higher pay
3. Increased running costs
4. Trade union movements/effects
MANAGEMENT
Privately owned businesses requires good systems to guarantee growth and
survival. A rich culture need to be cultivated and supported by the
management.

This includes:

• Capable personnel to hold key positions

• A clear decision making process
• Clear reporting lines
• Clear roles
• HR Policies and procedures
EMPLOYEE RELIABILITY

These include individual qualities like:

1. Integrity
2. Commitment
3. Skills and competence
4. Experience
5. Personality
6. Personal ambitions
7. Personal motivation
8. Discipline
EMPLOYEE PRODUCTIVITY/ PERFORMANCE MANAGEMENT

Many employers engage the services of employees but they are unable to
define or measure the real value that an employee gives back to the business.

Performance management continues to be a challenge, and the law requires

employees to handle performance issues procedurally.
 HR CHALLENGES FACED BY PRIVATE SCHOOLS

• Staff indiscipline • Falsified monetary claims

• Performance management • Grievances and disputes
• Lack of staff records • Lack of HR policies and procedures
• Lost time • Schemes of work
• Inaccurate, incorrect or falsified staff information • Lack of standardized pay structures
• Industrial Court cases
• Staff Turnover
• Communication problems
• Injuries at the workplace
• Uncaptured leave • Customer service efforts
• Morale and engagement
RECOMENDED HR MANAGEMENT PRACTICES FOR PRIVATE SCHOOLS

1. Proper HR Planning to avoid unnecessary costs

2. Staff Audits, HR Audits, Skills/Competence Mapping
3. Quality recruitment and selection of CORE Staff, Contract Type, and Screening
4. Proper documentation of employment related records
5. Clear and documented terms of employment
6. Performance Management – JD, KPIs
7. Documented HR Policy and regulations with maintained evidence of awareness
8. HR Risk management plans – outsourcing, insurance
9. Staff engagement plans
10. Staff Retention strategies
11. Discipline Management Policy
Summary of Excelon’s professional HR services
Every business has unique needs. Excelon limited is committed to offer you the following
services. This list is not conclusive:
1. HR Audits – to ascertain your compliance
2. Staff Audits – Generate, verify and collect all relevant staff information
3. HR Management outsourcing – Be your HR Manager
4. Recruitment and Selection, Back ground checks.
5. Payroll Outsourcing and Leave Administration – with web self service portal
6. Staff Outsourcing – Provide you with quality labour that meet certain standards
7. Performance Management System – Develop Performance management tools
8. Litigation Management – advise on litigation cases
9. Discipline management and exit process
10. Satisfaction Surveys
END
Thank you.

Q&A