Can an Employer Deduct for Damaged Company Property in Kenya?
Employers may seek to recover losses from employees but must follow strict guidelines under Kenyan law.
Instructions to Handle Damage Deductions:
Step 1: Investigate the Incident
Gather incident reports and evidence
Allow employee to explain or dispute
Step 2: Determine Liability
Confirm negligence or default by employee
Step 3: Calculate Reasonable Amount
Ensure deduction is proportionate to damage value
Step 4: Obtain Written Consent
Employee must agree in writing before deduction
Step 5: Apply Deduction within Legal Limits
Ensure total deductions do not exceed two‑thirds of basic pay
Key Takeaways:
Deductions for damage require due process.
Employee consent and fair calculation are mandatory.
Legal cap on deductions must be respected.
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