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Let courts end statutory deductions’ confusion in employment verdicts
There is something inherently strange about deducting a housing levy or health insurance contribution from a person whose employment, and with it any corresponding entitlement, has already come to an end.
DLA Piper Africa, Kenya (Iseme, Kamau & Maema Advocates)
Should employers make statutory deductions like affordable housing levy, Social Health Insurance Fund (SHIF) and PAYE from court awards for terminal dues? Picture a scenario that has become all too familiar: an employee is awarded compensation for unfair termination by the Employment and Labour Relations Court.
Keen to comply with the law, the employer deducts PAYE, NSSF, SHIF contribution and the Affordable Housing Levy, remits those sums to the relevant statutory bodies, and pays the balance to the former employee.
