๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐ ๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐
Rwanda enacted a regulation establishing the core elements of a written employment contract. These must be noted by all employees and employers as discussed below.
Rwanda is one of the lead destinations for investment in Africa, this has resulted to high levels of development in different industries. Hence, the increased numbers of employers and employees in Rwanda. Employer and Employee relationship is considered a sensitive one that if not well regulated, it can easily collapse the Labor industry, yet without labor, many industries cannot exist nor function.
The Law Regulating Labor in Rwanda defines an employment contract to mean an agreement between an employer and employee whereby an employee undertakes to work under the authority of the employer in return remuneration (Article 3). The Labor Law further clarifies that:
- An employment contract is concluded based on the mutual consent of the employee and employer.
- Employment contracts between an employee and more than one employer are acceptable if they are not compromising one another.
- An employment contract can be for a fixed term or indefinite.
- The employment contract can be written or unwritten.
Despite the fact that an employment contract can be written or unwritten, it must be noted and appreciated by all employees and employers that unwritten employment contract cannot exceed ninety (90) consecutive days.
Hence, written employment contracts are recommended for long term employment because in case of any dispute, it can easily be referred to by the parties, reducing unnecessary contradictions. This is the reason why employers or employees are strongly advised to always secure a written employment contract.
Therefore, before signing a written employment contract, one must understand what are the core element of a written employment contract in Rwanda.
Rwanda, passed a regulation establishing the core elements of a written employment contract. Meaning these elements must always be included in an employment contract. The enacted Ministerial Order N0 007/19.20 of 17/03/2020 determines core elements of a written employment contract.
CORE ELEMENTS OF A WRITTEN EMPLOYMENT CONTRACT A written employment contract must contain the following core elements: |
IDENTIFICATION OF THE EMPLOYEE AND EMPLOYER: Under this the draftsman must insert the name, address, phone number, email, website, TIN number, ID/passport number of the employer and employee. |
PURPOSE OF THE CONTRACT: General reason why the employer and employee are entering into a contract. |
OBLIGATIONS OF CONTRACTING PARTIES: Stating all the obligations for both the employer and employee. |
DURATION OF THE CONTRACT. |
The draftsman must mention when the contract will expire or whether the contract is open ended. This depends on cases per case. |
NATURE OF THE EMPLOYMENT: Stating the form of work to be performed by the employee. |
CATEGORY OR LEVEL OF EMPLOYMENT: Normally, Job levels are categories of authority in an organization. Each level is typically associated with a salary range and a series of job titles. Therefore, the draftsman must state whether the employee is under: executive management, middle management, management, advisors and employees. |
PLACE OF WORK: Stating where exactly the employee will be stationed. |
PROBATION PERIOD: Probation period cannot exceed six (6) months (Article 12 of the Law Regulating Labor in Rwanda). Therefore, the draftsman must state when the employee will end his or probation. |
WORKING HOURS: The maximum working hours are forty-five (45) hours a week (Article 43 of the law regulating labor in Rwanda). However, an employee can work extra hours upon the agreement with his/her employer. The draftsman must state the working hours for the employee. |
SALARY AND FRINGE BENEFITS FOR AN EMPLOYEE: The Draftsman must state the salary and benefits if any for the employee. Despite Currently, there is minimum wage as per the law. |
DEDUCTIONS ON SALARY OF AN EMPLOYEE: Clearing stating all deductions on salary of an employee. E.g Tax, Insurance etc |
DATE AND PLACE OF PAYMENT OF THE SALARY: The Contract must be clearly mention the date when the employee will receive his/her salary and where e.g Account number or place to collect the Cash |
OVERTIME REMUNERATION: The contract must stipulate the remuneration in situations when the employee works overtime. The salary on which the overtime salary is calculated is the gross salary of an employee. |
PROCEDURE OF TRANSFER OF AN EMPLOYEE:Sating the steps followed in case the employee is to be transferred. DISPUTE SETTLEMENT PROCEDURE: Clearing stating how a dispute will be solved. Mechanism to be used, how notices will be served and whether the decisions will be binding. E.g a clause like: |
“Any dispute arising out of or in connection with this contract, including any question regarding its validity or termination shall be referred to or resolved by arbitration under the KIAC Rules” (a) The number of arbitrators shall be … (one or three); (b) The seat or legal place of arbitration shall be … (town and country); (c) The language to be used in the arbitral proceedings shall be… |
PROCEDURES FOR TERMINATION OF THE EMPLOYMENT CONTRACT: Stating how each party may terminate the contract, notices required, compensation and among others. |
DATE OF COMMENCEMENT OF THE EMPLOYMENT CONTRACT. Mentioning the date when the contract will be effective. |
Additional core elements to employment contract of an employee working abroad
The Law further entails that in case an employee is required to work abroad, the employment contract must indicate the following other core elements:
- the period the employee is required to serve abroad;
- the currency in which remuneration is to be paid during that period;
- all terms relating to the employeeโs repatriation;
- place and procedure for payment of employeeโs social security contributions.
Note. An employment contract may include other clauses favorable to the contracting parties.
An employment contract is drafted in any language among the official languages. An employment contract is drafted in a language that an employee and an employer understand. If the employee and the employer do not understand the same language, an employment contract is drafted in two (2) languages, one that the employee understands and another that the employer understands.
๐๐ฉ๐ฆ ๐ข๐ฃ๐ฐ๐ท๐ฆ ๐ช๐ฏ๐ง๐ฐ๐ณ๐ฎ๐ข๐ต๐ช๐ฐ๐ฏ ๐ช๐ด ๐ช๐ฏ๐ต๐ฆ๐ฏ๐ฅ๐ฆ๐ฅ ๐ต๐ฐ ๐ฃ๐ฆ ๐ฐ๐ง ๐จ๐ฆ๐ฏ๐ฆ๐ณ๐ข๐ญ ๐ถ๐ด๐ฆ ๐ฐ๐ฏ๐ญ๐บ ๐ข๐ฏ๐ฅ ๐ด๐ฉ๐ฐ๐ถ๐ญ๐ฅ ๐ฏ๐ฐ๐ต ๐ฃ๐ฆ ๐ณ๐ฆ๐ญ๐ช๐ฆ๐ฅ ๐ถ๐ฑ๐ฐ๐ฏ ๐ธ๐ช๐ต๐ฉ๐ฐ๐ถ๐ต ๐ด๐ฆ๐ฆ๐ฌ๐ช๐ฏ๐จ ๐ด๐ฑ๐ฆ๐ค๐ช๐ง๐ช๐ค ๐ญ๐ฆ๐จ๐ข๐ญ ๐ข๐ฅ๐ท๐ช๐ค๐ฆ ๐ฐ๐ฏ ๐ข๐ฏ๐บ ๐ฎ๐ข๐ต๐ต๐ฆ๐ณ.
Author: Advocate KALLAGI. Arnold
- Member of the East Africa Law Society;
- Member of the Rwanda Bar Association;
- 2018 Certificate of Recognition for completion of the United States Patent and Trademark Office Exchange of Best Practices on Trademark Examination held at Kigali Convention Centre in Rwanda 2018;
- Masters in Business Law (University of Rwanda 2017-2019);
- Post Graduate Diploma in Legal Practice and Development (ILPD);
- Bachelor of Laws (Islamic University in Uganda Kampala-Campus).
Email: advocatekallagi@gmail.com Tel: +250787337024 (WhatsApp)
Website: http://opt-law.com/