(i) Important information about wages:
Basic wage refers to part of a worker’s remuneration paid in respect of work done, during the hours ordinarily worked but does not include allowances and pay overtime work. The Employment and Labour Relations Act of 2007, regulates the payment of wages to all classes of workers. As in section 19(5) stating “an employer shall pay an employee not less than one and one-half times the employees basic wage for any over timed worked.
The minimum wage rate is fixed under the Second Schedule of the Labour Institutions Wage Order, that is reviewed within three years from the date of issue. It also provides for a more favor able wage, allowances, terms and conditions of employment to be negotiate annually between the employer and employees at the workplace or any level of organization.
(ii) When are wage deductions legal?
According to section 1(a-b) of the Employment and Labour Relations Act of 2007 an employer is prohibited by the law to deduct the employees’ remunerations. Unless the deduction is required or permitted under written law, collective agreement, wage determination, court order or arbitration award; or when the employee in writing agrees to the deduction in respect of a debt.
Section 28(2) (a-e) of the Employment and Labour Relations Act of 2007 provides where a deduction is being made to reimburse an employer for loss or damage as shown below:
- The loss or damage occurred in the course of employment and was due to the fault of the employee.
- The employer has submitted to the employee, in writing, the cause, the amount or calculations of the debt.
- The employer has given the employee a reasonable opportunity to challenge the cause, amount or calculation.
- The total amount of the debt does not exceed the actual amount of the loss or damage.
- The total deductions from the employee’s remunerations under this subsection do not exceed one quarter of the employee’s remuneration in money (that is to say a deduction of 25%or 0.25of employee remuneration salary)
