When you receive your salary, the amount in your bank is less than your gross salary because the law requires certain deductions. These are called statutory deductions, which are mandatory contributions for tax, health, retirement, housing, and training.
Legal Consequences of Non-Remittance of Statutory Deductions in Kenya
In our previous article, we examined the key components of a standard payslip and how statutory deductions affect an employee’s final dues.
A more serious issue arises where statutory deductions are made but not remitted to the relevant authorities. At that point, the issue moves from being an administrative process and becomes a statutory breach with financial and, in some cases, criminal consequences.
Can your Employer use your Fingerprints or CCTV Footage without your Consent?
Under the Data Protection Act, 2019 (DPA), biometric data is any data based on your physical, physiological, or behavioral traits, and it constitutes sensitive personal data. Examples include fingerprints, DNA, voice and facial recognition, voice patterns, and iris scans.
Taking control of your data in the workplace.
Since the enactment of the Data Protection Act, 2019 (the Act), Kenya has taken a firm stance on the collection, use, storage, sharing, and general handling of personal data. Employee data, including CVs, identification details, biometrics, payroll information, and disciplinary records, is some of the most critical personal data an organization holds.
Key Compliance Considerations for Employers at the Start of the Year
As the new year begins, it is important for businesses to start on the right footing by ensuring they are compliant with key legal and regulatory obligations to avoid penalties, fines, and potential disputes, and promote good governance.
Can Employees Forfeit their Annual Leave?
Historically, the Employment and Labour Relations Court (ELRC) has held that annual leave is a basic right that cannot be forfeited. The position was that leave must either be utilized by the employee or encashed (paid out) by the employer.
Key Changes in NSSF Contribution Rates Effective February 2026
Starting February 2026, NSSF deductions will rise from the current maximum of Kshs. 4,320/= to Kshs. 6,480/= for employees, which must be matched by the employer. This translates to 6% of the employee’s monthly gross salary, with a similar amount paid by the employer thereby bringing the total contribution to the Fund to 12%.
Why Job Analysis & Job Evaluation?
Many organizations struggle with internal pay equity issues, where experienced or highly qualified team members may earn less than less-qualified colleagues performing the same work.
Fixing Overstaffing: A Practical Guide to Rightsizing Your Workforce
In many organisations, the conversation around staff numbers almost always leans one way: “We need more people.” Yet quietly, and often unnoticed, overstaffing has become one of the most expensive and productivity draining problems in the modern workplace especially for SMEs and fast-growing companies.
Must a Disciplinary Hearing Be Held if the Employee Has Confessed?
Imagine this: you’re the HR Manager, and one of your employees has just confessed to stealing company property. Your disciplinary policy says, “No dismissal without a hearing,” but you already have a signed confession on your desk. Do you still need to go through the motions of a full disciplinary process?