Employee Termination - Redundancy

Calculating Severance Pay

According the Employment Act Cap. 226 of the laws of Kenya, “an employee declared redundant shall be entitled to severance pay at the rate of not less than 15 days’ pay for each completed year of service as severance pay.”

Calculating Accumulated/Accrued Leave

According the Employment Act Cap. 226 of the laws of Kenya, “any leave due to any employee who is declared redundant shall be paid off in cash”

Wingubox Payroll Automation

With respect to the above Kenyan laws, Wingubox has introduced a revamped employment termination section. The new section will auto-calculate the accrued leave (from the leave app) and severance pay (based on date of employment) due to each employee being declared redundant.

Other dues such as gratuity and payment in lieu of notice may vary greatly from one company to another and hence Wingubox allows for manual entry of such dues.

Additionally, there is now an option to pro-rate an employee’s basic salary or award full pay for incomplete month termination.

These modifications should greatly improve automation of your payroll processing tasks.