Moi Teaching and Referral Hospital illegally paid 414 employees less than a third of their basic salaries, a new government audit shows.
Auditor-General Edward Ouko says the hospital breached the Employment Act 2007 that prohibits an employer from deducting employee wages by more than two thirds.
He said 414 officers of the hospital earned net salaries of less than a third of their basic salaries for between six and 12 months contrary to section 19(3) of the Act.
The Act allows an employer to make deductions from an employee’s salary provided one takes home not less than one-third of his or her salary. The employer can then recover from the employee’s future pay the balance arising as a result of the one-third rule.
An employer can also institute court proceedings for recovery of any balance if an employee is leaving employment.
Those who breach the Act are liable to a fine not exceeding Sh100,000 or a jail term not exceeding two years or both.
“An employee may file a complaint under this part to a labour officer, not less than three years after allegedly unlawful deduction has been made,” section 25(2) of the Act states.
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