The 1^st day of May marks International workers’ day (Labour Day) around the world. Labour Day is marked to celebrate the contributions made by workers and to generate awareness for labour rights. 

In Kenya, the following are some of the relevant legal developments that have occurred in the past year;-

Lapse of tax reliefs on employment income.

The tax reliefs given to workers on employment income in April 2020 lapsed on 1^st January 2021. The reliefs introduced by Tax Laws (Amendment Act) No.2 of 2020 allowed reduction of the Income Tax Rate (Pay-As-You-Earn) from 30% to 25% and offered a 100% tax relief for persons earning a gross monthly income of up to Kshs. 24,000.00. The effective tax rate for employment income has reverted to 30% for employment income of more than Kshs. 32,333.00, and employment income of up to Kshs 24,000.00 is now subject to taxation at the rate of 10%.  

Introduction of Pre-Adoptive Leave

On the other hand, workers have a reason to celebrate an amendment to the Employment Act, which introduces pre-adoption leave.

The Employment Amendment Act (2021) came into force on 15^th April 2021 and introduced pre-adoption leave for the parents who adopt a child.  A female employee or a single male employee who adopts a child is now entitled to a one-month pre-adoption leave with full pay.  Similarly, a married male employee will now be entitled to two weeks pre-adoption leave with full pay. 

Pre-adoption leave for employees accrues when a child is placed in the care and control of an employee. An employee who is entitled to pre-adoption leave will be required to notify their employer in writing of the adoption society’s intention to place a child in their care at least two weeks before the placement.   

An employee who proceeds on pre-adoption leave will be entitled to return to the job that they held before proceeding for leave or a reasonably suitable job and on employment terms that are not any less favourable than the terms they would have held had they not proceeded on leave. 

The introduction of pre-adoption leave will allow employees time to bond with and care for their adopted child. 

Labour Day 2021 is marked as a pandemic surges throughout the world.  We would like to recognize front line service workers who continue to provide their labour at great personal risk.

Happy International Workers’ day!

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