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Severance & final dues calculator

What is owed when work ends.

Pay for days worked, leave not taken, notice pay and redundancy severance, worked out line by line under the Employment Act.

Built for both sides

  • Employers budgeting a redundancy
  • HR checking a final pay slip
  • Employees told their contract is ending
  • Anyone who has resigned or been dismissed
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Not sure? Work it out with the leave calculator.

How it is worked out

The rules behind the numbers

What is severance pay on redundancy in Kenya?

At least fifteen days’ pay for each completed year of service, under section 40(1)(g) of the Employment Act. The employee is also owed leave not taken in cash and at least one month’s notice or a month’s wages in lieu.

How much notice pay is due?

It depends on how often wages are paid. Daily-paid contracts end without notice; weekly or fortnightly pay needs one pay period; monthly pay needs 28 days. A longer notice period in the contract applies instead. Either side may pay the notice period rather than work it.

How is a day’s pay worked out?

This calculator divides monthly pay by 30, the approach most commonly applied. Some contracts and payrolls use 26 working days, which gives a higher daily rate; you can switch to it.

Are the figures before or after tax?

Before. PAYE and statutory deductions still apply to most of these payments, and anything owed to the employer, such as an outstanding loan, may be set off under the Act.

What procedure must an employer follow before terminating?

For misconduct, poor performance or physical incapacity, section 41 of the Employment Act requires the employer to explain the reason it is considering, in a language the employee understands, in the presence of a fellow employee or a shop floor union representative the employee chooses, and then to hear and consider what they say before deciding. Redundancy instead follows section 40: a month’s written notice to the union, or to the employee and the labour officer, and due regard to seniority, skill, ability and reliability in selection.

What happens if the procedure was not followed?

Under section 45 a termination is unfair unless the employer proves both a valid and fair reason and a fair procedure, and section 47(5) puts proving the reason on the employer. Where the Employment and Labour Relations Court finds a termination unfair, section 49(1)(c) lets it award compensation of up to twelve months’ gross wages. That is a ceiling set by statute and the award is the court’s discretion, guided by the factors in section 49(4). A claim must be brought within three years under section 90.

Sources: Employment Act, 2007

  • s.28: annual leave of 21 working days.
  • s.35(1) and s.36: notice by pay interval, and payment in lieu of notice.
  • s.35(5)–(6): service pay where the employee is not in NSSF or a pension scheme.
  • s.40(1): redundancy notice, leave in cash, and severance of 15 days’ pay per completed year.
  • s.44: summary dismissal. s.51: certificate of service.

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