• Lawmakers want employers to instead ask workers to take leave of absence without pay.
• Companies have effected pay cuts of between 20 per cent and 50 per cent for their workers amid slim revenue from advertising.
Image: FAITH MATETE
Lawmakers want employers barred from deducting worker’s salaries following the Covid-19 pandemic.
Companies have effected pay cuts of between 20 per cent and 50 per cent for their workers amid slim revenue from advertising.
But lawmakers want the Employment Act amended to stop employers from enforcing the cuts.
They also want employers stopped from terminating workers’ contract of service or from dismissing anyone on grounds the company is unable to pay salaries.
MPs at the Finance Committee chaired by Kipkelion East MP Joseph Limo want employers to instead ask workers to take leave of absence without pay.
“Where an employer is unable to meet his obligation to pay salaries or wages, the employer shall permit an employer to take leave of absence without pay for the duration of the pandemic,” the committee said.
In their report of a review of the Tax Laws (Amendment) Bill, 2020, the lawmakers have further want contractors shielded from costs that may arise from delayed works.
Limo’s team said the move is to protect businesses that may have taken loans and are unable to meet their obligations owing to the pandemic.
However, Mandera North MP Abdulahi Sheikh said the amendment to Employment Act is populist.
"We care both for employer and employees and as we move such amendments, let us remember that both are Kenyans. Let us not bring a situation where we force companies to go under just because we want money in pocket of employees."
"It is the government that is supposed to cushion Kenyans, especially employees. They have been collecting taxes, it is their turn to help.”
Where the pandemic has affected the performance contractual obligations, MPs want termination of the lease in connection with non-payment of rent prohibited.
Creditors are also barred from repossessing any good used for the purposes of a trade, business or profession.
Lawmakers also want the KRA Act, 1995 amended to have tax evasion whistleblowers paid Sh5 million instead of Sh2 million.
The Finance committee further wants saccos barred from listing in the Credit Reference Bureau, their members who default on loan obligations.
They also want the Banking Act changed to allow banks to renegotiate loan repayment terms with borrowers.
“Any review shall not be deemed as a breach of contractual obligations,” the proposed law reads in part.