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Govt Moves to Compel Employers to Pay Sacked Staff for 6 Months

  • Labour Principal Secretary, Peter Tum, has announced that a proposal to compel employers to pay sacked employees has gotten a nod from the government.

    The proposed Unemployment Insurance Fund (UIF) received backing from the government in a bid to cushion fired employees in hard economic times.

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

    Labour Principal Secretary Peter Tum in his office.

    Labour Principal Secretary Peter Tum in his office.

    Courtesy

    In the proposal, salaried employees who lose their jobs due to unpredictable economic stupefactions such as the Covid-19 pandemic will be assured of payment.

    The proposal wants employees to continue receiving a portion of their pay for six months, after which they would be expected to have acquired skills to help them secure another job.

    PS Tum explained that once employees lose their jobs, they will be placed on temporary state relief.

    The Kenya National Employment Authority will then step in and provide them with information on “skills you are most likely to be employable”.

    Employees will contribute one per cent of their monthly income that will be corresponded by their employers.

    In 2021, FKE stated that such a fund would be beneficial to the country’s economy since it aims at generating at least Ksh45 billion annually on implementation.

    Notably, the Federation of Kenya Employers (FKE) proposed that the fund should also buffer cash-strapped firms to facilitate them to keep staffers on the payroll during unforeseen crises.

    FKE Executive Director, Jacqueline Mugo, noted that it was important for the government to factor in businesses and how they could be cushioned in such situations.

    Thousands of Kenyan workers lost jobs amid the Covid-19 pandemic economic shock with businesses closing down due to losses.

    Labour Principal Secretary Peter Tum in his office.

    Labour Principal Secretary Peter Tum in his office.

    Courtesy

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