How you can prepare for a likely job loss

As Covid-19 continues to disrupt what we considered normal for decades, it’s clear that many jobs are at risk of redundancy, forcing many employees out of work unexpectedly, crashing careers and dreams.

Employers are in a dilemma as well, letting go of good and productive employees as they watch their companies struggle and decline.

While many of these employers are responsible and are keen to ensure affected jobs are phased out in a responsible and compliant manner, redundancies are also costly, though some may apply creativity to minimise cost.

It’s important that as staff, you’re well appraised of your rights during this process.

First, redundancy is allowed in the Kenya Employment Act 2007 under Section IV 40 1-3. If your role is affected, your employer is expected to notify you in writing 30 days before the role is abolished and inform the Ministry of Labour and Social Justice.

For roles under unions, notice is given to the trade union officials with reasons leading to the decisions and the number of roles that would be effected.

Secondly, you’re entitled to a meeting with your line manager or human resources representative to explain the process and issue you with a letter of termination.

NOTICE PERIOD

Before you sign and acknowledge this letter, ensure that you have read and accept its contents. The meeting presents you with an opportunity to ask for clarification.

Thirdly, the termination letter should state the date the role ceases, which means that would unfortunately be your last day of work in the role in that organisation.

This date should factor in the notice period indicated in your letter of appointment or human resources policies.

The notice may be paid off in cash or depending on need for proper closure you may be required to work during the entire period.

Fourthly, the Employment Act provides for a redundancy pay equivalent to 15 days of salary for each completed year of continuous service.

This is the minimum payable by any employer. Some employers have polices that allow an enhanced package, say one or two month’s salary for every completed year of service. If that is the case in your situation, this is what should be applied.

PENSION

Fifthly, you should be paid any gratuities, bonuses or employee share option dues that may have accrued over your service.

Ensure this is stated clearly in your letter of separation. In addition, though your pension is usually managed by independent trustees, there should be a statement guiding you on steps necessary to secure your retirement benefits, and there should be no immediate pressure to withdraw your savings.

Remember your pension is protected and cannot be used to offset any debts with your employer.

Finally, just like any other income earned through employment, note that all redundancy dues are subject to tax but ensure the new revised Covid-19 rates are applied.