Court says SHIF, housing levy deductions on job termination benefits unfair

The dispute narrowed to one key question concerning which statutory deductions legally apply to court-awarded compensation.

Photo credit: Shutterstock

A Nairobi court has ruled that subjecting compensation for unfair termination of employment to housing levy and social health insurance deductions constitutes an unfair labour practice.
 
The judgment, delivered by the Employment and Labour Relations Court, stemmed from a post-judgment dispute between financial services provider Fourth Generation Capital Ltd and its former employee Alexander John Frank Stubbs.

The case followed an earlier ruling in which the court awarded Mr Stubbs Sh2.8 million as compensation for termination of his employment and pay in lieu of notice. 

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.