Frequently Asked Question

How does outsourcing affect employment contracts?

3 min read BestCare Manpower Services Nairobi, Kenya
Answer

The employment contract is one of the most important documents in any working relationship. It defines the terms of engagement, the rights of the worker, and the obligations of the employer. When labour outsourcing is involved, the structure of employment contracts changes in ways that matter to all three parties — the worker, the outsourcing firm, and the client business. At Bestcare Manpower Services, we take great care to ensure that our contractual arrangements are clear, lawful, and protective of everyone involved.

In a standard outsourcing arrangement, the worker signs an employment contract with the outsourcing company — Bestcare Manpower Services — not with the client business where they actually perform their work. This is the defining feature of the arrangement. The contract sets out the worker’s role, remuneration, working hours, leave entitlements, notice periods, and other terms and conditions. It is governed by the relevant employment legislation and must meet all statutory minimum requirements.

Outsourcing contracts with workers may be structured as fixed-term contracts aligned with a specific project, open-ended contracts where the worker is deployed to various clients over time, or specific-purpose contracts for seasonal or peak-demand work. The structure depends on the nature of the engagement and must comply with any statutory rules governing the use of fixed-term employment in the relevant jurisdiction.

The client business signs a commercial service agreement with the outsourcing firm — not an employment contract with the worker. This is a critical distinction. The client is purchasing a service; the workers delivering that service are employed by Bestcare. This means the client does not bear direct employment contract obligations, though they do retain certain duties toward the workers on their premises, particularly around health and safety.

Any changes to the worker’s employment terms — a change in role, a change in remuneration, a change in working hours — must be made through the outsourcing firm, not directly between the client and the worker. Clients who wish to vary the nature of the work should raise this with Bestcare, who will then manage the necessary contractual adjustments.

In many jurisdictions, workers accumulate statutory rights based on their continuous employment with a single employer. In an outsourcing context, employment continuity is with the outsourcing firm, even as the worker moves between different client deployments. This means that a worker’s entitlements — including notice rights, redundancy protections, and other length-of-service benefits — accrue with the outsourcing firm over time.

Transparency is essential throughout this process. Workers must be fully aware of the terms of their engagement, who their employer is, and what rights they hold. Bestcare Manpower Services provides all workers with clear, comprehensive employment documentation in language they can understand. We believe that informed workers are better workers, and that clarity in contracts prevents disputes and builds trust.