[2014] KEELRC 343 (KLR)
The court held that the only awards due to the grievant were compensation equivalent to 12 months' gross salary for wrongful, unlawful and unfair early retirement, and general damages equivalent to 8 months' salary to mitigate lost income for the period the grievant would have worked until lawful retirement. The...
Source-derived case information.
- Citation
- [2014] KEELRC 343 (KLR)
- Parties
- Applicant: Bakery Confectionery, Good Manufacturing and Allied Workers Union (Kenya); Respondent: The Wrigley Co. (E.A) Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 247(N) of 2009
- Procedural Posture
- Employment Cause / Judgment on Quantum
- Outcome
- Award for compensation and general damages granted; additional terminal benefits denied.
- Legal Topics
- Unfair Termination, Compensation Quantum, Premature Retirement, Terminal Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Bakery Confectionery, Good Manufacturing and Allied Workers Union (Kenya)
Applicant
The Wrigley Co. (E.A) Limited
Respondent
Procedural Posture
Employment Cause / Judgment on Quantum
Legal Issues
- 1 Whether the computation of compensation for wrongful, unlawful and unfair early retirement was correctly quantified.
- 2 Whether the claimant is entitled to additional terminal benefits beyond those awarded by the court.
Ratio Decidendi
The court held that the only awards due to the grievant were compensation equivalent to 12 months' gross salary for wrongful, unlawful and unfair early retirement, and general damages equivalent to 8 months' salary to mitigate lost income for the period the grievant would have worked until lawful retirement. The court rejected the claimant's attempt to include additional terminal benefits, finding that these were neither canvassed in the suit nor specifically prayed for. The total award was calculated strictly on the basis of the grievant's gross salary at the time of premature retirement, amounting to Kshs.922,480.00. The respondent was ordered to pay this sum with interest at court...
Court Disposition
Award for compensation and general damages granted; additional terminal benefits denied.
Orders
- Respondent to pay Kshs.922,480.00 to the grievant as compensation and general damages.
- Sum to be paid with interest at court rates from the date of unlawful retirement to the date of payment in full.
Full Case Text
Judgment text and source record
28 paragraphs
REPUBLIC OF KENYA
IN THE INDUSTRIAL COURT OF KENYA
AT NAIROBI
CAUSE NO. 247(N) OF 2009
BAKERY CONFECTIONERY, GOOD MANUFACTURING
AND ALLIED WORKERS UNION (KENYA)………………….…… CLAIMANT
-VERSUS-
THE WRIGLEY CO. (E.A) LIMITED……………………………… RESPONDENT
Mr. Muchai for the Claimant
Mr. Obura for the Respondent
JUDGMENT ON QUANTUM
In its judgment on merits delivered on 10th December 2013 the court awarded the grievant Mr. Francis Oputu;
12 months gross salary as compensation for the wrongful, unlawful and unfair early retirement and
Eight (8) months salary to mitigate the lost income for the five(5) years the grievant was entitled to work prior to his lawful retirement upon attaining 60 years old.
The court directed the claimant to compute the award within 30 days and serve the same on the Respondent for concurrence and/or review within 14 days subsequent to which the Quantum be filed with the court for consideration and adoption as an order of the court.
The computation dated 20th January 2014 was filed with the court on 17th March 2014 together with an affidavit of one Danchael Mwangare sworn on behalf of the Claimant.
From the contents of the affidavit, there was no concurrence between the parties on the Quantum. Instead the Respondent filed a letter dated 20th February 2014 written to the Claimant stating that the terminal benefits enumerated on items (a) – (i) were not awarded by the court and therefore rejected the computation.
The award of the court is confined to only two items as stated herein before.
The court finds that the grievant at the time of the pre-mature retirement earned a gross salary of Kshs.46,124. 00 made up of a basic salary of Kshs.38,374,00 and house allowance of Kshs.7,750. 00.
Accordingly the award of the court is as follows;
Compensation equivalent to 12 months wages (46,124. 00) x 12). In the sum of Kshs.553,488. 00
General damages equivalent to 8 months salary (46,124 x 8) in the sum of Kshs.368,992. 00.
Total award Kshs.922,480. 00.
The court did not consider nor award any other items as enumerated in the Quantification dated 20th January 2014 filed by the Claimant and therefore concurs with the Respondent in this regard. However, any other terminal benefits that may be due and owing to the grievant ought to be settled amicably between the parties as the same were not canvassed in this suit nor were there specific prayers on these items .
Accordingly the sum of Kshs.922,480. 00 is to be paid with interest at court rates from the date of the unlawful retirement to the date of payment in full. The Respondent is also to pay the costs of this suit.
Dated and delivered at Nairobi this 18th day of July, 2014.
MATHEWS N. NDUMA
PRINCIPAL JUDGE