ASK HR: With no appointment letter, will I be a victim of unfair dismissal?

Q.I am a professional with two years’ experience working in a small firm. We have gone through a rough patch financially in recent times and I have been left worried since I do not have an appointment letter, even though I am employed with all the benefits like NSSF and NHIF. Is there a way one can resolve issue of non-payment or unfair dismissal if one does not have an appointment letter?

It surprises me that you are a professional, yet you accept an engagement in employment on a verbal agreement.

It is also illegal for your employer to engage an employee without a valid contract of engagement as clearly stipulated in the Employment Act.

The appointment letter stipulates the terms of employment, such as the position, grade, reporting line, remuneration and benefits, notice period, sick leave provision and terms of disengagement with the employer. If it is a contract, it stipulates when it starts and ends.

In the absence of a formal contract, you are guided by the Employment Act, which is the minimum requirement that the employer must meet in engaging employees. However, most employers have enhanced terms which are superior to the Act, hence it is always advisable to negotiate and agree on the terms of engagement before you accept any employment offer.

You have a genuine concern because when organisations are making money and thriving, there is never fear of staff reduction. However, this is not the case when the company is not meeting its revenue targets. The law however protects you in that the employer can only terminate your services through redundancy.

The other point of concern is that an unscrupulous employer may understate the salary you had verbally agreed on since it was not written down. Also, the person without an appointment letter becomes an easy target since it is seen as easier to terminate the contract.

That said, unfair dismissal will be dealt with within the confines of the law. An employer is required to give you the reason for dismissal and to allow you a chance to be heard through a disciplinary hearing. This process must be followed even in the absence of a formal contract.