NSSF barred from Mandatory deduction of salaries; Details.
The National social security fund, NSSF barred from mandatory deduction of employees’ salaries.
This comes after the employment and labour relations court ended the scheme on the basis that some of its requirements unlawful and had violated labour rights
The court further stated that employees have a right to choose a pension scheme of their own without being mandated and obligated to NSSF.
The National social security fund deducts ksh. 200 monthly from an employees’ salary; this money will be saved up as part of the pension during retirement.
The court declared,”Sections 20 of the NSSF Act No.45 of 2013 which makes it mandatory to register and contribute to the fund and oblige the petitioner’s members (and other employees who have an adequate alternative pension or social security schemes) to join the pension or social security schemes operated by the 1st Respondent violates rights of employees and employers’ free choice contrary to Article 49 of the Constitution and is hereby declared null and void.”
The labour court added,”An order of injunction is hereby issued prohibiting and restraining the respondents by themselves, their servants, agents, assigns or any person claiming through them or otherwise from demanding, compelling and or requiring mandatory registration, enrolment or listing of any employer or employee whether registered as a member of any retirement benefits scheme or not to register, enrol or list and contribute their earnings or any part thereof in terms of the NSSF Act No.45 of 2013.”
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