Legal Provisions Governing Employee Remuneration (Regulations of Wages and Conditions of Employment Act

Meaning of remuneration – Refers to the amount paid or to be paid to the employee by the employer in cash clear of any deductions expect authorized deductions (lawful deductions) for example.

1. For the purpose of contribution to any provident fund or superannuating scheme
2. In respect of actions supplied to an employee which an employer is charged to provide
3. Under any provision where law provides that the employer deducts NSSF, NHIF, PAY, cooperatives.
4. At the request in writing by the employee for any purpose for which the employer has no benefit
5. Ina situation where there’s no council order, the general wages order is assumed to be in effect. Failure to comply is an offence. If an employer fails to pay an employee to whom a wages regulation order remuneration less than the statutory minimum or fails to provide the employment prescribed in that order, he shall be guilty of an offence and liable to a fine not exceeding 400 shillings.
6. In case of underpayment the employer can pay the arrears.

Powers of officers – A labour officer or labour inspector shall have power for the performance of his duties

1. To require the production of wage sheets or other records of wages kept by an employer and records of payments made to .
2. At all reasonable times to enter any premises at which an employer to whom a wages regulation order applies carries on his business including any place need in connection with that business for giving out work.

• To inspect and copy any material part of any list of outworkers kept by an employer

1. To examine, either alone, or in presence of any other person the wages of employee and there after sign a declaration of the truth of the matters n respect of which he is so examined

Determination of Wages and Salaries

• Minimum wages and conditions of employment for certain industries are imposed by the Government under the Regulation of Wages and Conditions of Employment Act (Cap 229)
• Employees are entitled to these minimum wages and conditions of employment even if their contacts of employment state otherwise
• Failing to adhere to guidelines on minimum wages and conditions of employment is a criminal offence. Penalty is Ksh 400/= and payment of the amount that is due the employee (difference between minimum wage and the actual wages)
• Employees are entitled to moneys, allowances and benefits earned while in employment, e.g. salary, accrued leave payments, bonuses, retirement benefits, e.t.c.
• Certificates of Service (testimonials) should be given if asked for
• Does not apply for casual workers whose engagement ends at the end of each day

Pay As You Earn (PAYE)

• The Income Tax Act places on employers an obligation to deduct and remit monthly, income tax for resident employees earning above Ksh 10,164/= per month. Employers are required also to tax benefits such as use of company vehicles
• Annual income tax returns should be made by employers for ALL employees whether subject to PAYE or not