[2018] KEELRC 1640 (KLR)
The court determined that the correct computation of the decretal sum must strictly follow the formula set out in the judgment: six months' gross salary as compensation for unfair termination, one month's gross salary as notice pay, six months' house allowance at 15% of basic salary, and 21 days' gross salary as...
Source-derived case information.
- Citation
- [2018] KEELRC 1640 (KLR)
- Parties
- Applicant: Kenya Petroleum Oil Workers Union; Respondent: Inspectorate East Africa Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Mombasa
- Jurisdiction
- Kenya
- Case Number
- Cause 725 of 2015
- Procedural Posture
- Employment Cause / Post Judgment Ruling on Computation and Interpretation of Monetary Award
- Outcome
- Partly allowed; balance of decretal sum ordered paid to claimant.
- Judges
- J Rika
- Legal Topics
- Redundancy Procedure, Unfair Termination, Compensation Calculation, Notice Pay, House Allowance, Annual Leave Entitlement
- 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
Kenya Petroleum Oil Workers Union
Applicant
Inspectorate East Africa Limited
Respondent
Procedural Posture
Employment Cause / Post Judgment Ruling on Computation and Interpretation of Monetary Award
Legal Issues
- 1 Whether the computation of the monetary award in the judgment was correctly interpreted by the parties.
- 2 Whether the respondent has fully satisfied the decretal sum as per the court's judgment.
- 3 What is the correct amount payable to the grievants under the judgment.
Ratio Decidendi
The court determined that the correct computation of the decretal sum must strictly follow the formula set out in the judgment: six months' gross salary as compensation for unfair termination, one month's gross salary as notice pay, six months' house allowance at 15% of basic salary, and 21 days' gross salary as annual leave pay. The court reviewed the payroll records and pay slips to establish the basic and gross salaries for each grievant. The court then applied the prescribed percentages and multipliers to arrive at the precise amounts due under each head. The total sum payable to the grievants was found to be Kshs. 1,173,377. Since the respondent had already paid Kshs. 1,039,325, a...
Court Disposition
Partly allowed; balance of decretal sum ordered paid to claimant.
Orders
- The respondent shall pay to the claimant the balance of Kshs. 134,052 within 7 days of this ruling, in default execution to issue.
- No order on the costs.
Full Case Text
Judgment text and source record
80 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT MOMBASA
CAUSE NUMBER 725 OF 2015
BETWEEN
KENYA PETROLEUM OIL WORKERS UNION.......CLAIMANT
VERSUS
INSPECTORATE EAST AFRICA LIMITED.........RESPONDENT
RULING
1. Judgment was delivered in this dispute, in favour of the Claimant, on 29th September 2017. The orders granted are as follows:-
a) Termination was based on valid redundancy reason, but flawed on procedure.
b) The Respondent shall pay to the Grievants:-equivalent of 6 months’ gross salary each in compensation for unfair termination; 1 month gross salary as notice pay; house allowance for a period of 6 months at 15% of the basic salary; and 21 days’ gross salary as annual leave pay.
c) No order on the cost.
2. Parties were not able to agree on the figures resulting from order [b] above. The Respondent holds the total payable, which has been paid, is Kshs. 1,039,325. The Claimant holds the total amount payable is Kshs. 1,210,552. It is submitted by the Claimant that the Respondent owes the Grievants Kshs. 171,227.
3. The Court shall not go into the arguments made by the Parties in support of their respective figures, but shall only revisit its Judgment and give an interpretation.
4. There are 5 Grievants on whose behalf the Claim is made. They are:-
a. Boniface Mireri.
b. Wycliffe Ogolla.
c. James Muye.
d. Benard Mbevi.
e. Chrispus Mukutano.
5. Their basic monthly salaries, as of the date of termination, and based on pay slips and payroll records availed to the Court by the Parties, are as follows:-
a. Boniface Mireri….Kshs. 23,760.
b. Wycliffe Ogolla….Kshs. 23,760.
c. James Muye….Kshs. 23,760.
d. Benard Mbevi….Kshs. 20,000.
e. Chrispus Mukutano …. Kshs. 27,500.
6. 15% of the basic salary as house allowance translates to the following:-
a. Boniface Mireri …. 15% of Kshs. 23,760 = Kshs. 3,564.
b. Wycliffe Ogolla…. 15% of Kshs. 23,760 = Kshs. 3,564.
c. James Muye….15% of Kshs. 23,760 = Kshs. 3,564.
d. Benard Mbevi….. 15% of Kshs. 20,000 = Kshs. 3,000.
e. Chrispus Mukutano…..15% of Kshs. 27,500 = Kshs. 4,125.
7. Arrears of house rent allowance for 6 months add up as follows:-
a. Boniface Mireri… Kshs. 3,564 x 6 = Kshs. 21,384.
b. Wycliffe Ogolla… Kshs. 3,564 x 6 = Kshs. 21,384.
c. James Muye…. Kshs. 3,564 x 6 = Kshs. 21,384.
d. Benard Mbevi…. Kshs. 3,000 x 6 = Kshs. 18,000.
e. Chrispus Mukutano…. Kshs. 4,125 x 6 = Kshs. 24,750.
Total…Kshs…106,902.
8. The gross salaries are as shown below:-
a. Boniface Mireri… Kshs. 23,760 + Kshs. 3,564 = Kshs. 27,324.
b. Wycliffe Ogolla…Kshs. 23,760 + Kshs. 3,564 = Kshs. 27,324.
c. James Muye… Kshs. 23,760 + Kshs. 3,564 = Kshs. 27,324.
d. Benard Mbevi…Kshs. 20,000 + Kshs. 3,000 = Kshs. 23,000.
e. Chrispus Mukutano…. Kshs. 27,500 + Kshs. 4,125= Kshs. 31,625.
9. Equivalent of 6 months’ gross salary in compensation for unfair termination, which has nothing to do with the order on payment of arrears of house allowance, works out as follows:-
a. Boniface Mireri…Kshs. 27,324 x 6 months = Kshs. 163,944.
b. Wycliffe Ogolla….Kshs. 27,324 x 6 months = Kshs. 163,944.
c. James Muye….Kshs. 27,324 x 6 months = Kshs. 163,944.
d. Benard Mbevi….Kshs. 23,000 x 6 = Kshs. 138,000.
e. Chrispus Mukutano….Kshs. 31,625 x 6 = Kshs. 189,750.
Total compensation….Kshs. 819,582
10. 1 month salary in lieu of notice is computed as follows:-
a. Boniface Mireri ….Kshs. 27,324.
b. Wycliffe Ogolla …. Kshs. 27,324.
c. James Muye ….. Kshs. 27,324.
d. Benard Mbevi….Kshs. 23,000.
e. Chrispus Mukutano….Kshs. 31,625.
Total notice pay….Kshs. 136,567.
11. 21 days’ gross salary in annual leave pay is as shown below:-
a. Boniface Mireri…Kshs. 27,324 divide by 26 working days = daily rate of Kshs. 1,050 x 21 days of annual leave = Kshs. 22,069.
b. Wycliffe Ogolla… Kshs. 22,069.
c. James Muye… Kshs. 22,069
d. Bernard Mbevi…Kshs. 23,000 divide by 26 working days = Kshs.884 x 21 days = Kshs. 18,576.
e. Chrispus Mukutano… Kshs. 31,625 divide by 26 working days = Kshs. 1,216 x 21 = Kshs. 25,543.
Total annual leave pay…. Kshs. 110,326
12. The total amount payable should therefore be:-
I. Compensation …. Kshs. 819,582.
II. Notice pay…. Kshs. 136,567.
III. House allowance….Kshs. 106,902.
IV. Annual leave pay…. Kshs. 110,326.
Total decree… Kshs. 1,173,377.
13. The Respondent has paid to the Claimant a sum of Kshs. 1,039,325. There is a balance of Kshs. 134,052.
IN SUM, IT IS ORDERED:-
a) The Respondent shall pay to the Claimant the balance of Kshs. 134,052 within 7 days of this ruling, in default execution to issue.
b) No order on the costs.
Dated and delivered at Mombasa this 6th day of July 2018.
James Rika
Judge