[2017] KEELRC 704 (KLR)
The court held that the employer's obligation to deduct and remit income tax from terminal dues is mandated by law under Section 37 of the Income Tax Act and Section 49(2) of the Employment Act. The court found the Respondent's tabulation of the Claimant's final dues, including the deduction of income tax, to be...
Source-derived case information.
- Citation
- [2017] KEELRC 704 (KLR)
- Parties
- Claimant: James Otieno Owiti; Respondent: CMC Motors Group Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1879 of 2015
- Procedural Posture
- Employment Cause / Ruling on Tabulation of Final Dues
- Outcome
- Claimant's dispute regarding the tabulation of final dues is dismissed with no order for costs.
- Judges
- L Ndolo
- Legal Topics
- Final Dues, Income Tax Deduction, Termination Benefits, Leave Entitlement
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
James Otieno Owiti
Claimant
CMC Motors Group Limited
Respondent
Procedural Posture
Employment Cause / Ruling on Tabulation of Final Dues
Legal Issues
- 1 Whether the Respondent was entitled to deduct income tax from the Claimant's final dues as per the termination letter.
- 2 Whether the tabulation of the Claimant's final dues by the Respondent was lawful and accurate.
Ratio Decidendi
The court held that the employer's obligation to deduct and remit income tax from terminal dues is mandated by law under Section 37 of the Income Tax Act and Section 49(2) of the Employment Act. The court found the Respondent's tabulation of the Claimant's final dues, including the deduction of income tax, to be lawful and in compliance with statutory requirements. Consequently, the Claimant's objection to the netting off of tax was dismissed, and the tabulation as presented by the Respondent was upheld.
Court Disposition
Claimant's dispute regarding the tabulation of final dues is dismissed with no order for costs.
Orders
- The Claimant's objection to the deduction of income tax from his final dues is dismissed.
- The Respondent's tabulation of the Claimant's final dues is upheld.
Full Case Text
Judgment text and source record
24 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO 1879 OF 2015
JAMES OTIENO OWITI.......................................................CLAIMANT
VERSUS
CMC MOTORS GROUP LIMITED.................................RESPONDENT
RULING
1. This ruling relates to a tabulation of the Claimant’s final dues as admitted in the termination letter dated 8th April 2015 being:
a. Salary up to and including 9th April 2015;
b. Salary for 43 days’ leave earned up to and including 9th April 2015;
c. Leave traveling allowance for 34. 5 days earned up to and including 9th April 2015;
d. Two months’ salary in lieu of notice;
e. Gratuity for 18 years at the rate of 16 days for each completed year of service totaling 306 days.
2. By an affidavit sworn by the Respondent’s Legal Counsel, Erick Masafu on 6th April 2017, a detailed tabulation of these dues has been provided. Readingfrom the Claimant’s response to the tabulation dated 4th May 2017, the bone of contention appears to be netting off of tax from the amount payable to the Claimant.
3. Section 37 of the Income Tax Act places responsibility on every employer to deduct and remit income tax. By virtue of Section 49(2) of the Employment Act, this responsibility survives the end of the employment contract. In light of these clear provisions of law, the Court finds no fault with the tabulation of the Claimant’s dues as presented by the Respondent.
4. The result is that the Claimant’s dispute in this regard is dismissed with no order for costs.
5. Orders accordingly.
DATED SIGNED AND DELIVERED IN OPEN COURT AT NAIROBI
THIS 29THDAY OF SEPTEMBER 2017
LINNET NDOLO
JUDGE
Appearance:
James Otieno Owiti (the Claimant in person)
Mr. Orina for the Respondent