Contracts and Dismissals
Written Employment Particulars
According to the Labour Code, an employment contract is any contract, either oral or written, by virtue of which a person agrees to work for an employer in return for pay. It can be concluded for a fixed term, an open-ended or for a well-defined task, based on the employer and worker’s mutual consent. However, an employment contract must be in writing if it is concluded for a period of three or more months. A foreign worker, working in Rwanda, must also be given a written employment contract.
A written contract must contain the information on: its legal basis; complete identity of both parties and place of work; nature and duration of contract; nature of job; probation period; notice period; salary, allowance and deductions, date and place of payment; rate of overtime remuneration; relevant collective labour convention; and internal rules and regulations; employment category and level of occupation; weekly working hours; and other clauses favourable to the worker.
An employment contract must be concluded in any of the official languages in Rwanda (Kinyarwanda, Swahili, English, and French). If a contract is concluded in more than one language, a language must be indicated which is referred to in the resolution of a dispute that may arise in contract implementation. An employment contract must be drafted in a language that both parties can understand. If parties do not understand the same language, the employment contract must be concluded in two languages, where one language is understood by each party to the contract.
Obligations of the employer and the worker are also mentioned in the contract, and their commitment to respect them in good faith, as well as in conformity with the Law. Employment contract also contains provisions related to contract termination and conflict resolution in the execution of the employment contract of both parties and the competent courts to refer to in the resolution of the conflict. Under the labour law, it is the responsibility of the employer to provide an employee with a written employment contract and a copy of it.
Source: §2, 11 & 39 of the Law regulating Labour in Rwanda, 2018 (No. 66/2018); Ministerial Order Nº 007/19.20 of 17/03/2020 determining the Core elements of a written employment contract
Fixed Term Contracts
Rwandan labour Law allows hiring fixed-term contract workers for tasks of a permanent nature. The 2018 labour law allows for fixed-term contracts. Under the earlier law, a worker hired for a fixed-term or an unspecified period that lasted more than six (6) consecutive months with the same employer was considered a permanent worker.
The 2009 and 2018 versions of the labour law do not require a valid reason for the use of fixed-term contracts, nor do they place a statutory limitation on the maximum duration of successive fixed-term contracts. A fixed term contract can be renewed as many times as agreed upon between the parties.
Source: §11 of the Law regulating Labour in Rwanda, 2018 (No. 66/2018)
Probation Period
The objective of probation period, with a view to conclude a definitive contract, is to decide beforehand to make an agreement whereby the employer examines the quality of the worker’s services and output while the worker looks at the conditions of work, living, pay, health and security at work as well as the social climate among the workers.
In accordance with the Labour Code, probation/trial period may not exceed three months. However, after the written evaluation of an employee’s performance at the end of three months, that is communicated to the employee, the employer can require the employee to retake the probation period for a maximum of three months. The valid reasons for extension or retaking of probation period must be related to the nature of work, or an employee’s performance and conduct.
Source: §13 of the Law regulating Labour in Rwanda, 2018 (No. 66/2018)
Termination of Employment
The Rwandan Labour Law recognises the following seven types of employment termination:
- Expiry / early termination of a fixed-term contract
- Termination of an indefinite term contract (with notice)
- Summary dismissal (due to gross misconduct)
- Termination due to retirement
- Termination due to the death of the employee
- Termination by mutual termination (agreement)
- Termination for economic or technical reasons, or sickness
An indefinite-term employment contract can be terminated by either party for legitimate reasons.
On the other hand, a fixed term contract terminates at the end of its term or by cancellation by either of the parties. The cancellation is either by agreement or in case of gross negligence. The party terminating the fixed-term contract before its expiry must have legitimate reasons for contract termination. The employer may terminate the contract without notice in case of gross misconduct. However, the employer must, within 48 hours of the occurrence of misconduct, notify in writing the specific grounds of termination.
Under a 2020 Ministerial Order, gross misconduct includes, but is not limited to, theft, fraud, fighting at the workplace, discrimination at the workplace, sexual harassment, gender-based violence at the workplace, illegal strike, etc. In cases of gross misconduct, no written contract termination notice is required.
The termination notice must be in writing and contain the reasons for termination.
An employment contract cannot be terminated during the suspension period or when an employee is on leave. During the term of notice, an employee is allowed to be absent from work once a week to look for a new job.
Employers are liable to pay damages in the event of unlawful dismissals. The damages for unfair dismissal range between three to six months’ salary, rising to a maximum of nine months’ salary for workers with more than 10 years of service with the same enterprise. Damages are also payable by workers if they terminate their employment contract unlawfully.
An employer may suspend an employee for up to 30 days without pay during an administrative investigation, but the employee’s salary is retained. If found innocent, the employee is reinstated with full pay.
For economic or technical reasons, an employee cannot be laid off for more than 90 days in a year. After this, they are considered dismissed and receive terminal benefits.
Dismissals due to restructuring or economic reasons require prior notice to employee representatives and the labour inspector. If dismissed for economic or technical reasons for less than six months, an employee has the right to reinstatement without competition if they meet the job requirements.
Source: §20-30 of the Law regulating Labour in Rwanda, 2018 (No. 66/2018); Ministerial Order N° 002/19.20 of 17/03/2020 Establishing the list of Gross Misconduct
Regulations on Employment Security
- Itegeko rigenga umurimo mu Rwanda, 2009 / Law regulating Labour in Rwanda, 2009 (Labour Code)
- Presidential Order N° 54/01 of 24/02/2017 Determining Official Holidays
