On gratuity, in Muchiri v Security Guards Services Limited (Employment and Labour Relations Appeal E108 of 2021) [2024] KEELRC 1807 (KLR) (8 July 2024) (Judgment), the Appellant argued that the trial court erred in denying him service gratuity on the basis of his pay slip which indicated contributions to the National Social Security Fund (NSSF), while the Regulation of Wages (Protective Security Services Order) stipulates that employees in the security services industry are entitled to gratuity.
The appellate court reviewed the purpose of Section 35(6) of the Employment Act, which excludes employees who contribute to the NSSF from receiving service pay. This provision aims to prevent situations where an employee might receive what appears to be double compensation.
The court ruled that requiring an employer to pay gratuity not provided in the employment contract when they are already contributing to the NSSF on behalf of the employee would be unreasonable.
Since the Respondent was paying NSSF contributions for the Appellant, the court determined that the Appellant was not entitled to service gratuity by virtue of the Order.
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