Final dues in Kenya: what you are owed when a job ends

The items that make up final dues

• Salary for the days worked up to your last day. When a contract ends by the passing of time, the employer must pay the entire amount of wages and allowances not yet paid (section 18(5)(a)). An employee summarily dismissed for lawful cause is still paid all money, allowances and benefits due up to the date of dismissal (section 18(4)).
• Pay for leave you earned and did not take. If the job ends after two or more consecutive months in a leave year, you have earned at least one and three quarter days of paid leave for each completed month (section 28(1)(b)).
• Notice pay, where the employer ends the contract without giving the notice you are owed. Either side may end the contract by paying the wages for the notice period instead (section 36).
• Severance pay, only where the job ends through redundancy: at least fifteen days' pay for each completed year of service (section 40(1)(g)).
• Any other amount your contract or a collective agreement promises: a gratuity, a pro rata bonus or a service pay scheme.

Service pay and NSSF

Section 35(5) gives an employee on a monthly contract that is terminated service pay for every year worked. Section 35(6) then says this does not apply where the employee is a member of the National Social Security Fund, a registered pension or provident scheme, or a gratuity or service pay scheme under a collective agreement.

In practice most people in formal jobs are NSSF members, so the Act's service pay rarely applies. Check your contract and any collective agreement, which may promise a gratuity anyway.

Two documents you should leave with

• A certificate of service, unless you worked for less than four consecutive weeks (section 51). It states the employer, your name, your start and end dates and the nature and usual place of your work. Failing to issue it is an offence.
• A certificate of pay and tax showing pay and PAYE up to your last paid day. KRA's employer guide tells employers to prepare one when a liable employee leaves.

• P9 form in Kenya: your certificate of pay and tax

Work out the leave part yourself

Leave pay is the item most often left out. Count the completed months in the current leave year, multiply by 1.75, and subtract the leave days you already took this year.

Completed months in the leave year: 8
Minimum earned: 8 x 1.75 = 14 days
Already taken: 5 days
Days to be paid in cash: 9 days

Your contract may give more than 21 days a year. Use your contract's figure if it is higher.

Deductions from the last payment

Statutory deductions such as PAYE, NSSF, SHIF and the housing levy still apply to the final pay. Other deductions, such as a loan the employer gave you, need a lawful basis, and the total of all deductions at one time cannot exceed two thirds of the wages (section 19(3)).

Ask for a written calculation that lists every item and every deduction. Compare it with your contract and your last payslips.

If something is missing

• Write to HR first, listing each item you believe is owed and the section behind it, and ask for a payment date.
• If that fails, go to the labour office for the area where you worked. Labour officers handle complaints about employers who neglect or refuse to fulfil a contract of service.
• If you were dismissed and believe it was unfair, a complaint to a labour officer must be made within three months of the dismissal (section 47(1)).
• Court claims under the Act must be started within three years of the default (section 89 in the revised edition).

This guide is general information, not legal advice for your situation.

• Salary paid late in Kenya: when wages are due and what to do

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