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The Labour Institutions (Amendment) Bill, 2011
THE LABOUR INSTITUTIONS (AMENDMENT) BILL, 2011
A Bill for
AN ACT of Parliament to amend the Labour Institutions Act, 2007 to provide for the minimum wages for certain categories of workers in the private sector and for connected purposes
ENACTED by the Parliament of Kenya, as follows—
Short title and commencement.
1. This Act may be cited as the Labour Institutions (Amendment) Act, 2011 and shall come into operation on such date as the Minister may, by notice in the Gazette, appoint which date shall not exceed ninety days from the date of publication.
Amendment of section 47 of No 12 of 2007.
2. Section 47 of the Labour Institutions Act, 2007, in this Act referred to as “the principal Act” is amended by inserting the words “which shall not be less than the rates specified in the Sixth Schedule of this Act in respect of those persons who do not draw their remuneration from the Consolidated Fund” immediately after the word “remuneration” appearing in paragraph (a) of subsection (1).
Insertion of Sixth Schedule into No 12 of 2007.
3. The Labour Institutions Act is amended by inserting a new Sixth Schedule as follows—
SIXTH SCHEDULE
1. BASIC MINIMUM CONSOLIDATED WAGES (AGRICULTURAL AND FLORICULTURAL INDUSTRY)
Occupation / Wages per month in KSh. / Wages per day in KSh.1. / Unskilled employee / 10,050 / 420
2. / Stockman, herdsman, watchman / 11,595 / 490
Skilled and Semi-skilled Employees: / Wages per month in KSh. / Wages per day in KSh.
3. / Skilled general worker, house servant or cook flower cutter, irrigation sprayer, / 18,000 / 435
4. / Farm foreman / 18,000 / 765
5. / Farm clerk, flower grader, / 18,000 / 765
6. / Senior foreman / 11,725 / 500
7. / Farm artisan, / 12,000 / 510
8. / Tractor driver / 12,727 / 540
9. / Combined harvester driver / 14,020 / 590
10. / Lorry driver or car driver / 14,710 / 620
MEMORANDUM OF OBJECTS AND REASONS
The principal object of this Bill is to amend the Labour Institutions Act, 2007 so as to increase the current minimum wages for certain categories of workers in the private sector owing to inflation and the rising cost of living since the minimum wage was last provided for through Legal Notices No 96 and No 98 of 2010.The Bill seeks to introduce a new Sixth Schedule in the Act which will provide for the minimum wages for certain categories of workers in the private sector. The Minister retains the power to upwardly review the wages provided for in the Sixth Schedule.
The enactment of this Bill will lead to betterment of the conditions of living of a majority of the Kenyan workers and also accelerate the implementation of the Bill of Rights in the new Constitution which places great emphasis on attainment of socio economic rights for citizens.
The Bill does not propose to increase the remuneration of those workers who draw their remuneration from the Consolidated Fund. This is highly regrettable but the civil servants have been left out of the proposed increment solely because of the limitation of section 48 of the former Constitution which is saved by the Sixth Schedule to the new Constitution. The said section 48 of the former Constitution prohibits a Member of Parliament from imposing a charge on the Consolidated Fund unless with the consent of the President signified through a Minister. It is hoped that the Government will embrace the spirit of this Bill and bring onboard the civil servants under its employment so that they too can benefit from the proposed enactment.
The enactment of this Bill shall not occasion additional expenditure from the Consolidated Fund.
Dated the 14th June, 2011
JOHN MUTUTHO,
Member of Parliament.
Section 47 of Act No 12 of 2007 which it is proposed to amend—
47. (1) A wages order shall—
(a) set minimum rates of remuneration;
(b) specify the matters in which an employer may make deductions from employee's wages and specify the maximum amount of deductions;
(c) specify the maximum amount which may be deducted from an employee's wages in respect of rations supplied by the employer;
(d) provide that an employer may only make a deduction in respect of rations supplied if authorised in writing by a labour officer;
(e) regulate task based work and piece work;
(f) regulate outwork, casual work and contract work;
(g) set minimum standards for sanitation for employees who reside on the premises of their employer; and
(h) regulate any other matter concerning remuneration or conditions of employment.
(2) A wages order may—
(a) make different provisions for different classes of employees; and
(b) contain provision for the amendment or revocation of previous wages orders.