[2014] KEELRC 750 (KLR)
The court held that the claimant was entitled to terminal dues as per the terms of service, including gross pay, outstanding leave, salary in lieu of notice, and days worked, subject to statutory deductions. However, the respondent was entitled to recover the claimant's outstanding debts from these dues. The net...
Source-derived case information.
- Citation
- [2014] KEELRC 750 (KLR)
- Parties
- Claimant: Ferdinand Imbayi Mutakha; Respondent: The Chief Executive Officer Mwalimu Cooperative and Credit Savings Society; Respondent: Mwalimu Cooperative and Credit Savings Society
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 655(N) of 2009
- Procedural Posture
- Employment Cause / Ruling on Application for Interpretation of Award
- Outcome
- Claimant ordered to pay respondent Kshs. 962,958.96 forthwith.
- Judges
- AN Makau
- Legal Topics
- Terminal Dues, Summary Dismissal, Statutory Deductions, Employee Debt Offset
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Ferdinand Imbayi Mutakha
Claimant
The Chief Executive Officer Mwalimu Cooperative and Credit Savings Society
Respondent
Mwalimu Cooperative and Credit Savings Society
Respondent
Procedural Posture
Employment Cause / Ruling on Application for Interpretation of Award
Legal Issues
- 1 Whether the court award of 14th September 2011 entitles the claimant to specific terminal dues and in what amounts.
- 2 Whether the respondent is entitled to recover the claimant's debts from the terminal dues as per the award.
Ratio Decidendi
The court held that the claimant was entitled to terminal dues as per the terms of service, including gross pay, outstanding leave, salary in lieu of notice, and days worked, subject to statutory deductions. However, the respondent was entitled to recover the claimant's outstanding debts from these dues. The net calculation resulted in the claimant owing the respondent a sum of Kshs. 962,958.96. The court clarified that no costs were awarded, consistent with the original award. The ruling provided a definitive tabulation and interpretation of the sums due and the offsetting of liabilities, thereby resolving the ambiguity in the original award regarding the computation of terminal dues and...
Court Disposition
Claimant ordered to pay respondent Kshs. 962,958.96 forthwith.
Orders
- The claimant shall pay the sum of Kshs. 962,958.96 to the respondent forthwith.
- No order as to costs.
Full Case Text
Judgment text and source record
37 paragraphs
REPUBLIC OF KENYA
INDUSTRIAL COURT OF KENYA
AT NAIROBI
CAUSE NO. 655(N) OF 2009
FERDINAND IMBAYI MUTAKHA…….……………….……CLAIMANT
versus
THE CHIEF EXECUTIVE OFFICER MWALIMU COOPERATIVE AND
CREDIT SAVINGS SOCIETY…..……….…………1ST RESPONDENT
MWALIMU COOPERATIVE AND CREDIT
SAVINGS SOCIETY……………..…..…….………2ND RESPONDENT
RULING
The Claimant sought an interpretation of the Award vide his Notice of Motion Application dated 2nd April 2012. In it, he sought the interpretation of the terminal dues he is entitled to in terms of the Court Award dated 14th September 2011 by Judge Kosgey sitting with 2 members of the Industrial Court Tribunal at Nairobi.
The interpretation is sought as the Court did not tabulate the terminal dues the Claimant was entitled to. In the Award, the Court determined as follows:-
The termination of the Claimant by Respondent be upheld
The Claimant be paid terminal dues applicable to normal termination of service under the Respondent’s employees terms of service
The Respondent will recover the Claimant’s debt to it from the Claimant’s terminal dues
No order as to costs.
The interpretation sought must of necessity include the finding under 2 and 3 above alone. The first is crystal clear as is the last. In relation to the terminal dues payable, without rehashing the testimony and determination by the learned Judge, the Claimant was entitled to receive the terminal dues payable to the 2nd Respondent’s employees upon termination. These were as follows:-
Gross pay – Kshs. 124,045/-
Outstanding leave days (120) – 295,125/-
One month salary in lieu of notice 59,025/-
11 days worked in May 2008 – 44,016/-
Total Kshs. 398,166/-
The sum due as shown above was inclusive of taxes. The same was to be subjected to statutory deduction. The tax payable was computed as Kshs. 133,008/- and thus the dues after tax were Kshs. 265,158/-. This was the sum the Court awarded to the Claimant.
The Respondent was to recover the Claimant’s debt to it from the Claimant’s terminal dues. The Claimant owed the following:-
Medical over expenditure – Kshs. 29,063/-
Salary advance – Kshs. 33,750/-
MWASWA surcharge Kshs. 140,845/-
WSF (returned cheques on the account) – Kshs. 1,232,624. 96
IDEA Version 7 Licence (Dongle) – Kshs. 190,000/-
Net Laibility Kshs. 1,361,124. 96
The above sum was to be deducted from the amount awarded to the Claimant. The amount would be Kshs. 398,166/- minus Kshs. 1,361,124. 96 which equals Kshs. 962,958. 96. It is therefore my finding that the net result of the offsetting will lead to the result that the Claimant will have to pay the sum of Kshs. 962,958. 96to the Respondent in terms of the Award of 14th September 2011. As the Court did not mulct any party with costs, I will not add to the Claimant’s misery though he lost and ordinarily costs would follow the event.
In the final result I order that the Claimant pays the sum of Kshs. 962,958. 96to the Respondent forthwith.
It is so ordered.
Dated and delivered at Nairobi on this 9th day of January 2014
Nzioki wa Makau
JUDGE