PSC 38

REPUBLIC OF KENYA

LOCAL AGREEMENT FORM (REVISED 2017)

EMPLOYMENT ON CONTRACT TERMS

AGREEMENT made the ....................................................day of ....................................... 20

........................................ between the Government of Kenya (hereinafter called “the
Government”) of the one part and ..................................ID/Passport No. ....................................

(hereinafter called “the employee”) of the other part.

1. The employee agrees that he/she will diligently and faithfully perform the duties of
(Designation) .....................................................................................................................

(Job Group/Scale/Grade) .......................................................... for the term of his/her

engagement and will act in all respects according to the instructions or directions given
to him/her by the appointing authority.

2. Subject to the provisions of clause 3 of the Schedule hereto, the salary of the
employee, which shall be payable monthly in arrears, shall be as follows:

Year of Service Salary

First KSh. ...................................a year

Second KSh. ................................... a year

Third KSh. ................................... a year

Fourth KSh. ................................... a year

Fifth KSh. ................................... a year

Sixth KSh. ................................... a year

Provided that his/her progress will be conditional upon the fulfillment by him/her of such
conditions as may from time to time be in force for holders of similar posts on the
pensionable staff of the Government.

3. This agreement is subject to the conditions set forth in the schedule hereto annexed, and
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To replace GP 106 (Revised 1975)
 other regulations in force from time to time applicable to pensionable officers of the
Public Service which shall be read and construed as part of this agreement.

As witness our hands the day and the year above written.

Signed by: ......................................................

on behalf of the Government of Kenya

in the presence of:

...................................................................................
Authorized Officer/Head of Public Service

Name .....................................................

Address ................................................. .......................................................................

...............................................................
Witness

Designation ...........................................

Signed by: ...............................................................................

Employee

In the presence of:

Name .............................................................................

Address .......................................................................... .......................................................

....................................................................................... Witness  

Designation ...................................................................

NOTE: All alterations, additions and deletions must be initialed by both parties and their
witnesses.

SCHEDULE TO AGREEMENT

Term of Engagement

The engagement of the employee is for a period of .............................. months beginning from
the ...................................... day of ....................................., 20..............

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To replace GP 106 (Revised 1975)
Further Employment

1. If the employee desires to remain in employment of the Government, the employee shall,
not more than six (6) months and not less than three (3) months before the date on which
his/her service under this Agreement terminates, give notice in writing to the Government
whether he/she desires to remain in its employment, and if he/she so desires, the
Government shall thereupon decide whether it will offer him/her further employment, in
which case the re-engagement shall be on such terms as may be mutually agreed.

Duties

2. The duties of the employee shall include the specific duties of the office for which he/she
is engaged, and any other suitable duties which the Government may call upon him/her to
perform. The employee shall not, either directly or indirectly, or without the permission
of the Government, engage or be concerned in trade, or in private professional practice or
any other gainful employment. The employee shall use his/her utmost exertions to
promote the interest of the Government, and shall conform to the general code of conduct
of Government and shall be subject to the Government regulations for the time being in
force so far as applicable.

Salary

3. (1) Full salary will begin from the ................................... day of ........................
20....................... and the incremental date of the employee will be
........................................
(2) Increments of salary, if any, will be reckoned as from the incremental date specified
in clause 3 (1) above, but no increment will be granted unless the efficiency, conduct,
diligence and satisfactory performance, of the employee during the year immediately
preceding have been approved.

Invaliding on Account of Incapacity Produced by ill Health

4. (1) If at any time a Government Medical Board shall certify that the employee is by
reason of ill health, not caused by his/her own misconduct, incapable of rendering further
efficient service, then the employee shall be required to relinquish his/her employment on
medical grounds.

(2) The employee shall not be invalided unless he/she has appeared before a Medical
Board of which one member shall be a medical practitioner nominated by the employee.
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To replace GP 106 (Revised 1975)
Discipline

5. (1) If the employee shall at any time after the signing hereof neglect or refuse or from
any cause (excepting ill health not caused by his/her own misconduct as provided in
clause 4 of this Agreement) become unable to perform any of his/her duties or to comply
with any order or shall improperly disclose any information respecting the affairs of the
Government to any unauthorized person, or shall in any other manner misconduct
himself/herself, the Government may on direction by the appropriate employer or
appointing authority terminate his/her engagement forthwith, and thereupon all rights and
advantages reserved to him/her by this Agreement shall cease.

Provided that the Government may make such inquiry as it thinks fit into circumstances
during such inquiry and until the decision of Government is communicated to the
employee he/she may be interdicted from duty and shall, during such interdiction, receive
one-half of the basic salary to which he/she would otherwise be entitled. If his/her
engagement is not terminated, the Government may in its discretion order that any
balance of his/her salary to which he/she would have been otherwise entitled, be paid to
the employee but upon the termination of his/her engagement he/she shall be entitled
only to one-half basic salary paid to him/her for the period from his/her interdiction until
the termination of his/her engagement.

(2) The employee or his/her legal representatives, as the case may be, shall have the right
of appeal against any decision of the appropriate employer that has the effect of
withholding, suspending, reducing or otherwise altering to his/her detriment any benefits
due to him/her estate.

(3) If the employee shall absent himself/herself from duty through ill health he/she shall
produce a medical certificate to that effect, and if his/her sickness should in the opinion
of a Government Medical Officer be caused through the engaged person’s own
impropriety of conduct he/she shall forfeit his/her salary for the period of such absence.

(4) If he/she shall absent himself/herself from duty for any cause whatsoever without
leave, he/she shall forfeit his/her salary for the period of such absence, and it shall be
lawful for the Government to terminate his/her engagement forthwith as for misconduct.

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To replace GP 106 (Revised 1975)
Determination of Engagement

6. (1) Subject to the provisions of the Employment Act the Government may at any time
determine the engagement of the employee by giving him/her two months’ notice in
writing, or paying him/her two months’ salary in lieu of notice.
(2) The employee may, at any time after the expiration of three months from the
commencement of his/her term of engagement, determine his/her engagement by giving
to the Government two months’ notice in writing, or by paying to the Government two
months’ salary in lieu of notice.
(3) If the employee terminates his/her engagement otherwise than in accordance with this
Agreement, he/she shall be liable to pay to the Government on demand as liquidated
damages one month’s salary.

Liability to make good Damage

7. (1) If, in the opinion of the Government, any pecuniary damage arises from any disregard
or failure on the part of the employee to comply with any order, or departmental
instructions, or from any neglect of duty whatsoever on his/her part, he/she may be liable
to a deduction from his/her salary to make good the damage or any part thereof, the
amount of which shall be fixed by the Authorized Officer.
(2) Where the employee is required to pay or to reimburse any amount to the Government
or owes the Government any such sum, such amount may be recovered by deduction or
otherwise from his/her salary in such installments as the Government may see fit, or if
he/she qualifies for gratuity, from such gratuity.

Gratuity

8. If the Agreement is determined otherwise than under the provisions of clauses 5, 6 (2) or
6 (3) hereof, the employee shall be granted, at his/her option which shall be exercised at
the time of signing this Agreement, a gratuity of thirty one per centum (31%) or as
determined from time to time of the total Basic Salary paid to him/her during the term of
his/her engagement under this Agreement.
Provided that if at the time of signing this Agreement the employee has exercised his/her
option not to draw the gratuity which may become due to him /her in respect of his/her
term of engagement under this Agreement, and if in the meanwhile he/she has not
become a member of the pensionable service of the Government, then the gratuity
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To replace GP 106 (Revised 1975)
 shall be payable on his/her leaving the service of the Government.
Provided further that if the employee becomes a member of the pensionable service of the
Government without a break in his/her service, then:
(a) That period of his/her continuous service immediately preceding his/her appointment
as a member of such service for which he/she has been granted such gratuity shall be
taken into account only as qualifying service and shall not be taken into account in the
calculation of any pension, gratuity or other allowance which may be awarded to
him/her as a member of the pensionable service of the Government.

(b) That period of his/her continuous service immediately preceding his/her appointment
as a member of such service for which he/she has not been granted a gratuity shall be
taken into account, both as qualifying service and in the calculation of any pension,
gratuity or other allowance which shall be awarded to him/her as a member of the
pensionable service of the Government.

Annual Leave

9. An employee on contract will normally be granted, during his/her service and so far as
the exigencies of the public service permit, leave under the existing regulations.

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To replace GP 106 (Revised 1975)