Answer to Question #174031 in Management for Abdullahi Amin

Question

In relation to the employment Act cap 226 laws of Kenya, discuss five deductions that an employer will make from the wages of his employee.

Answer 1

Based on employment Act cap 226 laws of Kenya, an employer can deduct the following from the employees’ wages and salary:

(a) Any amount due from the employee as a contribution to any provident fund or superannuation scheme or any other scheme approved by the Commissioner for Labour to which the employee has agreed to contribute.

 (b) A reasonable amount for any damage done to, or loss of, any property lawfully in the possession or custody of the employer occasioned by the wilful default of the employee.

(c) An amount not exceeding one day’s wages in respect of each working day for the whole of which the employee, without leave or other lawful cause, absents himself from the premises of the employer or other place proper and appointed for the performance of his work.

(d) An amount equal to the amount of any shortage of money arising through the negligence or dishonesty of the employee whose contract of service provides specifically for his being entrusted with the receipt, custody and payment of money.

 (e) Any amount paid to the employee in error as wages in excess of the amount of wages due to him.