[2016] KEELRC 1403 (KLR)
The court reaffirmed that the claimant's commission entitlement must be calculated on the basis of net profit, which includes both direct and indirect expenses. Since the claimant's tabulation ignored indirect costs and the respondent's tabulation properly accounted for them, the court adopted the respondent's...
Source-derived case information.
- Citation
- [2016] KEELRC 1403 (KLR)
- Parties
- Claimant: George Muteti; Respondent: Express DDB Kenya
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1441 of 2013
- Procedural Posture
- Employment Cause / Post Award Tabulation Ruling
- Outcome
- Claim for commission allowed as per respondent's tabulation.
- Judges
- L Ndolo
- Legal Topics
- Commission Entitlement, Remuneration Disputes, Award Enforcement
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
George Muteti
Claimant
Express DDB Kenya
Respondent
Procedural Posture
Employment Cause / Post Award Tabulation Ruling
Legal Issues
- 1 Whether the claimant is entitled to commission as previously awarded by the court.
- 2 How the commission should be tabulated in accordance with the court's definition of net profit.
Ratio Decidendi
The court reaffirmed that the claimant's commission entitlement must be calculated on the basis of net profit, which includes both direct and indirect expenses. Since the claimant's tabulation ignored indirect costs and the respondent's tabulation properly accounted for them, the court adopted the respondent's figures. The claimant is therefore entitled to Kshs. 27,626.43 as commission, as per the respondent's computation.
Court Disposition
Claim for commission allowed as per respondent's tabulation.
Orders
- The claimant is entitled to Kshs. 27,626.43 as commission, calculated in accordance with the respondent's tabulation.
Full Case Text
Judgment text and source record
19 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT NAIROBI
CAUSE NO 1441 OF 2013
GEORGE MUTETI...............................................................CLAIMANT
VS
EXPRESS DDB KENYA...............................................RESPONDENT
RULING
1. On 13th November 2013, I delivered an award in favour of the Claimant, including a component of commission which I directed the parties to tabulate. The parties failed to achieve an agreeable tabulation hence this ruling.
2. In the aforesaid award, I found that the Claimant was entitled to 20% commission on account of 'below the line' jobs procured through his marketing efforts calculated on the basis of net profit. I also defined net profit as sales revenue less direct and indirect expenses.
3. In his tabulation, the Claimant ignored the definition of net profit assigned by the Court and thus presented figures that do not factor in indirect costs. Needless to say this tabulation was not helpful to the Court.
4. On its part, the Respondent presented a detailed tabulation showing the cost of production as well as the overhead costs of each job. In the absence of any contrary tabulation that takes into account overhead costs, the Court adopts the figures presented by the Respondent as the commission payable to the Claimant. I therefore find that the Claimant is entitled to Kshs. 27,626. 43 as commission.
4. Orders accordingly.
DATED SIGNED AND DELIVERED IN OPEN COURT AT NAIROBI THIS 15TH DAY OF APRIL 2016
LINNET NDOLO
JUDGE
Appearance:
Mr. Okemwa for the Claimant
Mr. Mituga for the Respondent