[2021] KEELRC 1400 (KLR)

[2021] KEELRC 1400 (KLR)

The court held that both parties were correct in part: the gross wage forms the basis for computation of compensation and notice pay under section 49(1)(c) of the Employment Act, 2007, but the final amount payable must be net of statutory deductions as required by section 49(2). The court found the respondent's...

Source-derived case information.

Citation
[2021] KEELRC 1400 (KLR)
Parties
Applicant: Benard Musyoka Ngwenzee & 167 Others; Respondent: Uzuri Foods Limited
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nairobi
Jurisdiction
Kenya
Case Number
Cause 1830 of 2015
Procedural Posture
Employment Cause / Post Judgment Tabulation and Adoption of Quantum
Outcome
Respondent's tabulation of dues adopted as judgment amount; claimants awarded net amounts after statutory deductions.
Legal Topics
Unfair Termination, Compensation Calculation, Statutory Deductions, Notice Pay, Quantum of Damages
Source Language
en
Employment and Labour Unfair Termination Compensation Calculation Statutory Deductions Notice Pay Quantum of Damages

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Parties

Benard Musyoka Ngwenzee & 167 Others

Applicant

Uzuri Foods Limited

Respondent

Procedural Posture

Employment Cause / Post Judgment Tabulation and Adoption of Quantum

  1. 1 Whether compensation for unfair termination should be calculated on gross or net salary.
  2. 2 Whether statutory deductions should be applied to the awarded compensation.
  3. 3 Which party's tabulation of dues is correct and should be adopted by the court.

Ratio Decidendi

The court held that both parties were correct in part: the gross wage forms the basis for computation of compensation and notice pay under section 49(1)(c) of the Employment Act, 2007, but the final amount payable must be net of statutory deductions as required by section 49(2). The court found the respondent's tabulation, which applied the gross wage and then deducted statutory amounts to arrive at the net wage for each claimant, to be the correct approach. Accordingly, the respondent's schedule dated 9th March, 2021, covering all 170 claimants and totaling Ksh. 22,503,852, was adopted as the judgment amount. This resolved the dispute on quantum and the method of calculation, ensuring...

Court Disposition

Respondent's tabulation of dues adopted as judgment amount; claimants awarded net amounts after statutory deductions.

Orders

  • The respondent's tabulation dated 9th March, 2021, totaling Ksh. 22,503,852 for all 170 claimants, is adopted as the judgment amount.
  • Each claimant to be paid the net amount as per the respondent's schedule, reflecting one month's salary in lieu of notice and 8 months' salary as compensation for unfair termination, less statutory deductions.