[2016] KEELRC 1185 (KLR)
The court found that the claimant's employment was terminated due to operational reasons, specifically the closure of the petrol station for lack of fuel supply, resulting in redundancy. The claimant proved his entitlement to terminal benefits, including notice pay, unpaid salary, leave pay, and severance pay, as...
Source-derived case information.
- Citation
- [2016] KEELRC 1185 (KLR)
- Parties
- Claimant: Alex Kidagi; Respondent: Jonathan Petrol Station Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 918 of 2014
- Procedural Posture
- Employment Cause / Judgment
- Outcome
- Claim partly allowed; terminal benefits awarded; claim for compensation for unfair termination dismissed.
- Legal Topics
- Unfair Termination, Redundancy, Terminal Benefits, Notice Pay, Leave Entitlement
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Alex Kidagi
Claimant
Jonathan Petrol Station Limited
Respondent
Procedural Posture
Employment Cause / Judgment
Legal Issues
- 1 Whether the claimant's dismissal from employment was unfair, unprocedural and unlawful.
- 2 Whether the claimant is entitled to terminal benefits including notice pay, unpaid salary, leave pay, and severance pay.
- 3 Whether the claimant is entitled to compensation for unfair termination.
Ratio Decidendi
The court found that the claimant's employment was terminated due to operational reasons, specifically the closure of the petrol station for lack of fuel supply, resulting in redundancy. The claimant proved his entitlement to terminal benefits, including notice pay, unpaid salary, leave pay, and severance pay, as stipulated under section 40 of the Employment Act, 2007. However, the claim for compensation for unfair termination was not proved and was dismissed. The respondent, having failed to defend the suit, did not rebut the claimant's evidence, and the court awarded the claimant the proven terminal benefits, interest, costs, and a certificate of service.
Court Disposition
Claim partly allowed; terminal benefits awarded; claim for compensation for unfair termination dismissed.
Orders
- Respondent to pay claimant Kshs. 282,265.80 as terminal benefits.
- Interest at court rates from date of filing suit until payment in full.
Full Case Text
Judgment text and source record
37 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS
COURT AT NAIROBI
CAUSE NO 918 OF 2014
ALEX KIDAGI ……................................................. CLAIMANT
Versus
JONATHAN PETROL STATION LIMITED ................ RESPONDENT
Mr. Muhada for claimant
JUDGMENT
The suit was brought vide a memorandum of claim on 30th May 2014. The claimant seeks;
a declaration that the claimant’s dismissal from the respondent’s employment was unfair, unprocedural and unlawful;
One month’s salary in lieu of notice in the sum of Kshs.11,49. 00;
Unpaid salary for 13 months 18 days worked in the sum Kshs.158,426. 40;
Payment in lieu of leave days not taken Kshs.65,234. 40;
House allowance reimbursement Kshs.167,745. 60.
Compensation for unfair termination Kshs.1349,788. 00
Payment for redundancy Kshs.46,956. 00;
Costs of the suit.
The suit is undefended. The respondent was served with the memorandum of claim dated 23rd May 2015 and a notice of summons dated 4th June 2014 on 16th June 2014 by Mr. Alex Kidogi at the respondent’s place of business at Birika along the Kiserian- Isinya Road. service was done on one Mr. Isaac Nderitu, the manager of the petrol station.
The matter proceeded to formal proof and the claimant filed written submissions in support of the case.
The court finds that the particulars of claim set out in paragraphs 3, 4, 5, 6, 7, 11, 12 13, 16 of the memorandum of claim have been proved on a balance of probabilities. Accordingly the claimant is entitled to payment of;
one month’s salary in lieu of notice in the sum of Kshs.11,549. 00;
unpaid salary for 13 months in the sum of Kshs. 158,426. 40;
payment in lieu of untaken leave days in the sum of Kshs.65,234. 40; and
severance pay in the sum of Kshs.46,956. 00.
It is evident that the claimant’s employment was terminated for operational reasons the petrol station having closed down for lack of fuel supply.
The claimant therefore became redundant there being no work to do.
The terminal benefits awarded above are in terms of section 40 of the Employment Act, 2007.
The claim for compensation for unlawful termination of employment has not been proved and the same is dismissed.
In the final analysis, the claimant is awarded as against the respondent;
Kshs. 282,265. 80 terminal benefits;
interest at court rates from date of filing suit till payment in full;
costs of the suit;
certificate of service
Dated and delivered at Nairobi this 6th day of May, 2016.
MATHEWS NDERI NDUMA
PRINCIPAL JUDGE