My name in Charity. I resigned from my role as an HR Assistant in January for various reasons and afterwards gave my employer a one month notice. My employer acknowledged my resignation in writing and later thanked me for my service and said he regretted my leaving.
However, 3 months later my former employer is yet to pay for service on the basis that according to the “new” labour laws an employee is not entitled to service pay if his employer has been paying for his NSSF!
I am startled because I believe service pay & NSSF are totally different things! What should I do?
According to Section 35 (5) of the employment ACT 2007, an employee whose contract of service has been terminated legally is entitled to service pay for every year worked, the terms of which shall be fixed.
However, the Act adds that the service pay requirement for each employer shall not apply where an employee is a member of;
- A registered pension or provident fund scheme under the Retirement Benefits Act
- A gratuity or service pay scheme established under a collective agreement
- Any other scheme established & operated by an employer whose terms are more favourable than those of the service pay scheme established under this section;
- The National Social Security Fund (NSSF).
The Act clearly highlights if you are a member of the above mentioned bodies, then you should not even think about getting a service pay from your employer.
For instance, as a members of a registered pension or provident fund scheme under the Retirement Benefits, your pension overrides service pay.
In the same way, as a worker contributing to the National Social Security Fund (NSSF) you are not entitled to a service pay, and so are those belonging to any other schemes established and operated by the employer.
Equally important, remember that service pay and severance pay are two totally different entities.
So there you have it. Click here to keep yourself updated on what the Kenya employment law requires of you as an employee in Kenya