Casual Employment Contract (Kenya)
Day-to-Day Employment Agreement under the Employment Act No. 11 of 2007
CASUAL EMPLOYMENT CONTRACT
This Casual Employment Contract is entered into on [Signing Date] between [Employer Name] of [Employer Address] (KRA PIN: [Employer K R A Pin], Tel: [Employer Contact]) (hereinafter "the Employer") and [Employee Name] (National ID No. [Employee I D Number]), residing at [Employee Address] (hereinafter "the Employee"). This contract is made pursuant to Section 37 of the Employment Act No. 11 of 2007 and the regulations made thereunder.
1. Nature of Engagement
1.1 The Employer engages the Employee as a casual employee on a day-to-day basis commencing [Commencement Date]. 1.2 The nature of work to be performed is: [Nature Of Work]. 1.3 The place of work is: [Place Of Work]. 1.4 This engagement is governed by Section 37 of the Employment Act No. 11 of 2007. A casual employee is engaged by the day and the engagement is terminable at the end of each day without notice. Should the Employee be employed for a continuous period exceeding one month, the Employer shall convert this engagement to a formal contract of service with full statutory entitlements.
2. Working Hours
2.1 The Employee's normal working hours shall be: [Working Hours]. 2.2 The Employee shall not be required to work more than 52 hours per week (including overtime) as prescribed under Section 27 of the Employment Act No. 11 of 2007. Any overtime shall be compensated at not less than one and one-half times the normal hourly rate.
3. Wages and Payment
3.1 The Employer agrees to pay the Employee a daily wage of KES [Daily Wage K E S] (Kenya Shillings) for each full day of work performed. 3.2 Payment shall be made: [Payment Time]. 3.3 All wages shall be paid in Kenya Shillings through a method agreed by the parties. The Employer shall issue a pay slip or wage receipt to the Employee upon each payment, reflecting gross wages, all statutory deductions, and net pay, as required under Section 74 of the Employment Act No. 11 of 2007. 3.4 The daily wage stated above meets or exceeds the applicable Minimum Wages Order issued under the Regulation of Wages (General) Order.
4. Statutory Deductions
4.1 NSSF: [Nssf Deduction]. National Social Security Fund contributions shall be deducted from the Employee's wages in accordance with the NSSF Act No. 45 of 2013, with the Employer contributing the corresponding employer portion. Employee NSSF Number: [Employee N S S F Number]. 4.2 SHIF: [Shif Deduction]. Social Health Insurance Fund contributions at 2.75% of gross wages shall be deducted under the Social Health Insurance Act No. 16 of 2024 and remitted to the Social Health Authority (SHA). 4.3 Housing Levy: [Housing Levy Deduction]. The Affordable Housing Levy at 1.5% of gross wages (employee contribution) plus 1.5% (employer contribution) shall be deducted and remitted to the Kenya Revenue Authority (KRA) under the Affordable Housing Act. 4.4 PAYE income tax shall be deducted by the Employer in accordance with the Income Tax Act (Cap. 470) and remitted to KRA through the iTax platform on or before the 9th of the following month.
5. Occupational Safety and Health
5.1 PPE Provided: [Ppe]. The Employer shall provide the Employee with appropriate personal protective equipment (PPE) at no cost to the Employee, in compliance with the Occupational Safety and Health Act No. 15 of 2007 (OSHA). 5.2 The Employee shall report any workplace injury immediately to the Employer. The Employer shall ensure coverage under the Work Injury Benefits Act No. 13 of 2007 (WIBA) from the first day of engagement. 5.3 The Employee shall comply with all site safety rules and instructions issued by the Employer or site supervisor.
6. Termination
6.1 [Termination Policy] 6.2 This casual engagement may be terminated by either party at the end of any working day without the requirement to give notice, consistent with Section 37(1) of the Employment Act No. 11 of 2007. 6.3 Where the Employee has been continuously employed for more than one month, the Employer shall issue a written contract of service and provide the Employee with the full protections under the Employment Act, including the right to notice under Section 35 and protection from unfair termination under Sections 41–45. 6.4 The Employer may summarily dismiss the Employee for gross misconduct as defined under Section 44 of the Employment Act No. 11 of 2007, including dishonesty, wilful disobedience, or endangering fellow workers.
7. Special Conditions
7.1 [Special Conditions] 7.2 The Employee acknowledges that they have read and understood the terms of this contract, or had them explained, and enter into this agreement freely without coercion.
8. Governing Law and Dispute Resolution
8.1 This contract is governed by the laws of Kenya, including the Employment Act No. 11 of 2007, the Labour Relations Act No. 14 of 2007, and the Constitution of Kenya 2010. 8.2 Any dispute arising from this contract shall first be referred to the Labour Officer under Section 87 of the Employment Act. If unresolved, either party may refer the dispute to the Employment and Labour Relations Court (ELRC) established under Article 162(2)(a) of the Constitution of Kenya 2010 and the Employment and Labour Relations Court Act No. 20 of 2011.
Signatures
Signed by the Employer: Name: [Employer Name] Date: [Signing Date] Signed by the Employee: Name: [Employee Name] National ID: [Employee I D Number] Date: [Signing Date] Witness (if applicable): Name: ____________________ Signature: ____________________ Date: ____________________
Employer
________________
Signature
Employee
________________
Signature
What Is a Casual Employment Contract (Kenya)?
A Casual Employment Contract in Kenya defines the duties, pay, hours and termination terms governing the relationship between employer and employee. It defines duties, remuneration, working hours, leave, and termination procedures binding employer and employee.
The Employment Act No. 11 of 2007 grants specific protections to casual employees. Section 37(2) provides that where a casual employee is employed for a continuous period exceeding one month, the employer must issue a written contract of service (not merely a day-by-day engagement) — at which point the casual employee acquires the full statutory protections applicable to regular employees, including the right to notice, annual leave under Section 28, sick leave under Section 30, and protection from unfair termination under Sections 41 to 45. The Employment and Labour Relations Court (ELRC), established under Article 162 of the Constitution of Kenya 2010, has repeatedly held that employers who retain casual workers for months or years without converting their contracts to permanent employment are in breach of the Employment Act.
Statutory deductions for casual employees in Kenya reflect the same framework as permanent employees, adjusted for the daily wage structure. The Kenya Revenue Authority (KRA) requires PAYE deductions under the Income Tax Act (Cap. 470) on daily wages if the annualised equivalent exceeds the personal relief threshold. National Social Security Fund (NSSF) contributions under the NSSF Act No. 45 of 2013 are mandatory from the first day of employment — the employer must contribute on behalf of each casual worker engaged. Social Health Insurance Fund (SHIF) contributions at 2.75% of gross wages under the Social Health Insurance Act No. 16 of 2024 apply to all employees, including casual workers. The Housing Levy under the Affordable Housing Act (1.5% employee plus 1.5% employer) applies to casual employment wages.
A Casual Employment Contract differs from an Independent Contractor Agreement in a critical respect: a casual employee is subordinate to the employer's direction and control (working when told, where told, and how told), while an independent contractor determines their own working methods. The ELRC applies a multi-factor test — including control, integration, economic dependence, and the parties' own description of the relationship — to determine whether a worker is an employee or contractor. Misclassifying casual employees as contractors to avoid statutory obligations is a common compliance failure identified in ELRC judgments.
The Minimum Wages Order issued by the Minister of Labour under the Regulation of Wages (General) Order sets daily minimum wage rates for casual workers across different sectors and geographic areas. For 2025/2026, the general minimum wage is approximately KES 704 per day (derived from the monthly general minimum of KES 15,201.65 divided by 21.6 working days). Employers engaging casual workers in agriculture, construction, hospitality, and domestic service must check the sector-specific minimum wage schedules published by the Directorate of Labour in the Kenya Gazette.
When Do You Need a Casual Employment Contract (Kenya)?
A Kenya Casual Employment Contract is required or recommended whenever an employer engages workers on a casual, day-to-day basis, and several specific circumstances highlight the importance of a written agreement.
A Casual Employment Contract is needed when a construction contractor registered with the National Construction Authority (NCA) engages labourers, masons, or carpenters on a daily basis for a specific building project. Without a written casual contract, the employer cannot demonstrate compliance with the Occupational Safety and Health Act No. 15 of 2007 (OSHA) site safety requirements, and casual workers who suffer injuries on site cannot easily claim Work Injury Benefits Act No. 13 of 2007 (WIBA) compensation without documented proof of engagement.
A Casual Employment Contract is required when a farm, plantation, or agricultural enterprise in the Rift Valley, Central Kenya, or Coast Province engages seasonal harvest workers. The Regulation of Wages (Agricultural Industry) Order sets specific minimum wage rates for agricultural casual workers, and a written contract documents compliance with these sector-specific rates.
A Casual Employment Contract is needed when a hospitality business — hotel, restaurant, catering company, or events company in Nairobi, Mombasa, or Kisumu — supplements its permanent workforce with casual waiters, kitchen staff, or event support workers during peak periods. Without a written contract, the employer faces ELRC claims for unfair termination when casual engagements end.
A Casual Employment Contract is required when a domestic employer hires a casual housekeeper, gardener, or security guard on a daily basis. Domestic workers are expressly covered by the Employment Act No. 11 of 2007, and the Regulation of Wages (Domestic Workers) Order specifies minimum daily rates for domestic casual workers by location (Nairobi, Mombasa, other urban areas, and rural areas).
A Casual Employment Contract is needed when a casual engagement is approaching the one-month threshold under Section 37(2) of the Employment Act No. 11 of 2007. At that point, the employer must either convert the worker to a permanent or fixed-term contract with full statutory protections, or terminate the engagement before continuous employment exceeds one month. A written record of start dates and engagement periods allows the employer to manage this threshold.
A Casual Employment Contract is required when the employer wants to clearly document the daily wage rate, the specific duties, the site or location of work, and the NSSF, SHIF, and Housing Levy deduction obligations — creating a paper trail that protects both the employer and the casual worker in the event of a wage dispute before the Employment and Labour Relations Court (ELRC) or the Directorate of Labour.
What to Include in Your Casual Employment Contract (Kenya)
A Kenya Casual Employment Contract governed by Section 37 of the Employment Act No. 11 of 2007 must include the following essential elements to be legally compliant and practically enforceable.
Parties and Identification: The employer's full legal name, BRS registration number (for companies), address, and KRA PIN. The casual employee's full legal name, National Identity Card (NIC) number, residential address, and KRA PIN. Every casual worker must provide their NIC and KRA PIN before engagement — an employer who fails to obtain these details cannot comply with PAYE deduction obligations under the Income Tax Act (Cap. 470).
Nature of Casual Engagement: A clear statement that the engagement is on a casual day-to-day basis under Section 37 of the Employment Act No. 11 of 2007, with no guarantee of continuing engagement beyond each day. The daily duties, the site or location of work, and the reporting arrangements must be specified.
Daily Wage Rate: The gross daily wage in Kenya Shillings (KES), confirming compliance with the applicable minimum daily wage under the Regulation of Wages (General) Order or the relevant sector-specific wage order (agricultural, domestic, hotel and catering, security, or building and construction). The agreement should confirm that the wage will be paid at the end of each day or at an agreed interval not exceeding weekly.
Statutory Deductions: The employer's obligation to deduct and remit PAYE under the Income Tax Act (Cap. 470) on wages exceeding the personal relief threshold; NSSF contributions under the NSSF Act No. 45 of 2013 from the first day of engagement; SHIF contributions at 2.75% of gross daily wages under the Social Health Insurance Act No. 16 of 2024; and Housing Levy at 1.5% of gross wages matched by the employer under the Affordable Housing Act.
Conversion Threshold: A clause confirming that if the casual engagement continues for more than one month without interruption, the employer will issue the worker with a permanent or fixed-term written contract under Section 9 of the Employment Act No. 11 of 2007. This protects the employer from inadvertently creating a long-term employment relationship with full termination protection.
Occupational Safety: The employer's obligation to provide the casual worker with appropriate personal protective equipment (PPE), site safety induction, and a safe working environment under the Occupational Safety and Health Act No. 15 of 2007 (OSHA). For construction site workers, the NCA's site safety requirements must be documented.
Work Injury Benefits: Confirmation that the casual worker is covered by the employer's Work Injury Benefits Act No. 13 of 2007 (WIBA) policy. WIBA coverage must commence from the first day of engagement — casual workers are among the most vulnerable to workplace injuries, and WIBA claims are a frequent source of ELRC litigation when employers fail to provide insurance.
Termination: The casual engagement may be terminated at the end of any working day without notice, in accordance with Section 37(1) of the Employment Act. For engagements that have continued for more than 1 month (triggering the Section 37(2) conversion), the Employment Act notice and procedural fairness requirements apply.
Governing Law: The agreement shall be governed by the laws of Kenya, and disputes shall be referred to the Employment and Labour Relations Court (ELRC). The forms-legal.com Casual Employment Contract template provides Kenyan employers with a compliant, practical document for casual worker engagements across all sectors, covering the statutory deduction obligations, safety requirements, and conversion threshold provisions required by the Employment Act No. 11 of 2007. Employers with large casual workforces in agriculture, construction, or hospitality should maintain a daily engagement register alongside individual casual contracts to demonstrate compliance with the ELRC and the Directorate of Labour.
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year = {2026},
howpublished = {\url{https://forms-legal.com/kenya/employment/contracts/casual-employment-contract-kenya}},
note = {Free legal document template}
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Frequently Asked Questions
Under Section 37(1) of the Employment Act No. 11 of 2007, a casual employee in Kenya is a person employed on a day-to-day basis and paid at the end of each day, whose engagement may be terminated at the end of that day without any notice. The casual employment relationship is characterised by its day-to-day, non-continuing nature — the employer has no obligation to call the worker back the following day, and the worker has no right to continuous employment beyond each individual day of engagement. Common examples of casual employment in Kenya include construction labourers hired on a daily basis at a building site registered with the National Construction Authority (NCA), agricultural harvest workers engaged seasonally by farms in Nakuru, Meru, or Murang'a counties, and daily domestic workers hired through a third-party service. The critical legal distinction from permanent and fixed-term employment is that a casual employee does not acquire notice rights, annual leave under Section 28, or unfair termination protection under Sections 41 to 45 of the Employment Act — unless the casual engagement continues for more than one month without interruption, at which point Section 37(2) requires the employer to issue a formal written contract of service.
Section 37(2) of the Employment Act No. 11 of 2007 provides that where a casual employee in Kenya is employed on a continuous basis for a period exceeding one month, the employer must issue the worker with a written contract of service. At that point, the casual employee transitions to being a regular employee with full statutory protections — including the right to 28 days' notice of termination under Section 35, annual leave of 21 working days after 12 months under Section 28, sick leave of 7 days full pay plus 7 days half pay under Section 30, and protection from unfair termination under Sections 41 to 45, enforceable before the Employment and Labour Relations Court (ELRC). The Employment and Labour Relations Court (ELRC) has consistently held that employers who engage workers as casual employees for months or years without issuing a formal contract violate Section 37(2) and will treat such workers as permanent employees for the purposes of unfair termination claims. Employers should therefore monitor casual engagement duration carefully and either issue a formal written contract upon reaching one month, or genuinely terminate the casual engagement before continuous employment exceeds one month if the day-to-day structure is the intended arrangement.
Yes. Casual workers in Kenya are entitled to NSSF and SHIF contributions from the first day of engagement. The National Social Security Fund Act No. 45 of 2013 requires all employers — including employers of casual workers — to register each worker with the NSSF and make contributions from the commencement of employment. NSSF contributions are calculated on pensionable earnings — Tier I contributions apply to income up to the lower earnings limit (KES 9,000 per month from February 2026) and Tier II contributions apply to the band up to the upper earnings limit (KES 108,000 per month). For casual workers paid daily wages, contributions are calculated on the daily wages earned. The Social Health Insurance Act No. 16 of 2024 replaced the former NHIF with the Social Health Insurance Fund (SHIF), and requires a 2.75% contribution from gross wages — applicable to casual workers. Additionally, the Affordable Housing Act mandates a 1.5% Housing Levy deduction from the casual worker's gross wages, matched by the employer, remitted to the National Housing Development Fund. Failure to make NSSF, SHIF, and Housing Levy contributions for casual workers exposes the employer to enforcement action by the respective statutory bodies and penalties under the Tax Procedures Act No. 29 of 2015.
Minimum daily wages for casual workers in Kenya are set by the Minister of Labour under various Wages Orders published in the Kenya Gazette. The general minimum wage for 2025/2026 is approximately KES 15,201.65 per month, which translates to approximately KES 704 per day based on 21.6 working days per month. However, sector-specific minimum wage orders prescribe different rates: the Regulation of Wages (Agricultural Industry) Order sets rates for farm labourers, which vary by crop type and location; the Regulation of Wages (Building and Construction Industry) Order sets rates for casual construction workers, which differ between Nairobi and Mombasa and other areas; the Regulation of Wages (Hotel and Catering) Order covers casual hospitality workers; and the Regulation of Wages (Domestic Workers) Order sets daily rates for casual domestic employees. Employers should verify the current applicable minimum daily wage in their sector and county by checking the most recent Wages Order in the Kenya Gazette, as rates are adjusted periodically by gazette notice. Paying below the applicable minimum daily wage is an offence under Section 5 of the Employment Act No. 11 of 2007, enforceable by labour officers from the Directorate of Labour and by the Employment and Labour Relations Court (ELRC).
A casual employee engaged strictly on a day-to-day basis under Section 37(1) of the Employment Act No. 11 of 2007 does not have the right to claim unfair termination when their daily engagement ends, because each day's engagement is a separate contract that expires at the end of that day. However, the Employment and Labour Relations Court (ELRC) looks beyond the label 'casual' to the actual facts of the employment relationship. Where a worker labelled as casual has in reality worked continuously for the same employer for months or years, attends at regular fixed times, is integrated into the employer's operations, and has no independent business — the ELRC will treat the worker as a permanent employee and hold the employer liable for unfair termination. The ELRC has awarded reinstatement and up to 12 months' gross salary in compensation in cases of misclassified casual workers. Additionally, once a casual engagement has continued for more than one month under Section 37(2), the worker acquires full employment protections including unfair termination rights. Employers should maintain accurate daily engagement records and avoid the pattern of re-engaging the same casual workers repeatedly to circumvent the one-month rule.
A casual employee and an independent contractor occupy different legal positions in Kenya, with significant consequences for tax, statutory benefits, and legal protections. A casual employee under Section 37 of the Employment Act No. 11 of 2007 is subordinate to the employer's direction and control — the employer determines when, where, and how the work is done. A casual employee is entitled to NSSF contributions under the NSSF Act No. 45 of 2013, SHIF contributions under the Social Health Insurance Act No. 16 of 2024, Housing Levy deductions, and statutory protections under the Employment Act — including the right to convert to permanent employment after one month of continuous service. An independent contractor, by contrast, provides services under a Service Agreement or Independent Contractor Agreement on their own terms — they determine their working methods, may work for multiple clients simultaneously, supply their own tools, and operate as a business entity (registered with BRS or as a company). Contractors are not entitled to NSSF employer contributions, SHIF employer contributions, annual leave, or unfair termination protection before the ELRC. The Kenya Revenue Authority (KRA) applies a multi-factor employment test: control, economic dependence, tools, right of substitution, and how the parties describe the relationship. Misclassifying a casual employee as a contractor to avoid statutory obligations attracts PAYE assessments, NSSF penalties, and ELRC unfair termination liability.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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