Govt's Action to Urge Employers to Pay Sacked Employees for Six Months

According to Labour Principal Secretary Peter Tum, the government has given its approval to a proposal to mandate employers to compensate dismissed employees.

Govt's Action to Urge Employers to Pay Sacked Employees for Six Months

The government has endorsed the proposed Unemployment Insurance Fund (UIF) in an effort to provide relief to laid-off workers during difficult economic times.

According to PS Tum, the Ministry of Labour will discuss the temporary reprieve with the Federation of Kenya Employers (FKE) and the Central Organisation of Trade Unions (COTU).

Labour Principal Secretary Peter Tum in his office.

 Labour Principal Secretary Peter Tum.PHOTO FILE

Salaried employees who lose their jobs owing to unforeseeable economic shocks, like the Covid-19 outbreak, will be guaranteed compensation under the idea.

Employees would keep a percentage of their compensation for six months, after which they would be expected to have learned skills that would help them find another employment.

According to PS Tum, employees who lose their jobs will be placed on temporary state aid.

The Kenya National Employment Authority will then intervene and offer them information on "skills with which you are most likely to get work."

Employees will donate 1% of their monthly salary, which will be matched by their employers.

The Federation of Kenya Employers (FKE) suggested that the fund be used to help cash-strapped businesses maintain employees on the payroll during unforeseen difficulties.

Jacqueline Mugo, FKE Executive Director, stated that it was critical for the government to consider businesses and how they could be protected in such instances.