Terminal Benefits

Find out the laws about about Terminal Benefits in Kenya on mywage.org/kenya including material on termination notice, pay, employment termination payment etc. at workplace in Kenya

Terminal benefits are the final entitlements of an employee upon termination of an employment contract. 

What terminal benefits am I entitled to as an employee upon the termination of my employment contract?

Generally, under various sections, the Employment Act, 2007 provides for the following upon termination of the employment contract, (under sections 35 (5), 36 and 40 (1) (e) (f) (g)); 

  • Any remuneration for work done by an employee before termination. 
  • Any annual leave pay due to an employee.
  • Any notice pay due to an employee.
  • Any severance pay due if an employee qualifies for this.
  • Certificate of Service (section 51).

If my contract as an employee is terminated due to misconduct, am I still entitled to severance pay?

No. Termination of employment on grounds of misconduct does not warrant severance pay. 

Am I, as an employee, entitled to severance pay upon retirement?

Apart from redundancy, other forms of employment termination do not warrant severance pay. However, workers are entitled to other forms of payment, for example a pension fund in case of retirement. 

How is severance pay calculated?

The Employment Act, section 40 (1) (g) specifies severance pay at the rate of not less than 15 days pay for each completed year of service with the same employer. This means that severance pay is calculated by multiplying 15 days’ salary by the number of years that an employee has rendered services to an employer.

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