Terminal dues in Kenya: what you are owed when employment ends

"Terminal dues" is the everyday name for what an employer must pay when employment ends — whether you resign, are dismissed or are declared redundant. The minimums come from the Employment Act, 2007; your contract or a collective agreement can give you more, never less.

What is usually included

• Salary for days worked up to the last day.
• Notice or pay in lieu of notice. Unless the contract gives longer, the minimum notice depends on how often you are paid; for an employee paid monthly it is 28 days. An employer that ends the contract without notice pays the equivalent instead.
• Untaken annual leave. Every employee earns at least 21 working days of paid leave a year. Leave you have earned but not taken is paid out.
• Severance pay on redundancy — at least 15 days' pay for each completed year of service.
• Service pay, in some cases, for employees who are not members of a pension scheme or the NSSF.
• Any contractual benefits — bonuses or allowances the contract says are payable.

The certificate of service

Every departing employee is entitled to a certificate of service under section 51, whatever the reason for leaving. An employer cannot withhold it to force a settlement.

What can be deducted

Only deductions the law or you have authorised — PAYE, statutory contributions, and documented loans or advances. An employer cannot simply deduct "losses" it alleges you caused.

If the dues are not paid

1. Write to the employer asking for a computation and payment.
2. Report to the labour officer in your county, who can call both sides to a conciliation meeting.
3. File a claim at the Employment and Labour Relations Court. Claims generally must be filed within three years. If you were also dismissed without a valid reason or fair procedure, an unfair termination claim can be made at the same time, with compensation of up to twelve months' gross salary.

Resigning?

You are still owed salary to date, accrued leave and your certificate of service, but you must give the notice your contract requires — or the employer may deduct pay in lieu.

This article is general information, not legal advice on your situation.

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