[2019] KEELRC 980 (KLR)
The court held that the affected 103 employees are to be paid one month's salary in lieu of notice, pay in lieu of annual leave capped at three years, and ex-gratia pay at one month's salary, in line with the payments made to the 71 employees previously paid pursuant to the Labour Officer's recommendations. The...
Source-derived case information.
- Citation
- [2019] KEELRC 980 (KLR)
- Parties
- Applicant: Kenya Shipping, Clearing and Warehouses Workers Union; Respondent: Sunripe (1976) Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 2324 of 2017
- Procedural Posture
- Employment Cause / Post Judgment Application for Clarification and Enforcement of Judgment
- Outcome
- Application for clarification granted to the extent of specifying payment terms; operative orders issued for computation and payment of dues.
- Judges
- DO Ogal
- Legal Topics
- Redundancy Procedure, Terminal Benefits, Statutory Entitlements, Ex Gratia Payments
- 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 Shipping, Clearing and Warehouses Workers Union
Applicant
Sunripe (1976) Limited
Respondent
Procedural Posture
Employment Cause / Post Judgment Application for Clarification and Enforcement of Judgment
Legal Issues
- 1 Whether the judgment delivered on 17th August 2018 required amendment regarding the payment terms for the 103 employees declared redundant.
- 2 What constitutes the correct computation of terminal dues for the affected employees in line with the court's judgment and the Employment Act.
Ratio Decidendi
The court held that the affected 103 employees are to be paid one month's salary in lieu of notice, pay in lieu of annual leave capped at three years, and ex-gratia pay at one month's salary, in line with the payments made to the 71 employees previously paid pursuant to the Labour Officer's recommendations. The court clarified that these entitlements apply to all employees, including those on temporary or seasonal contracts. If the parties cannot agree on the figures, the Labour Officer is to assist in the tabulation. The application to amend the judgment was effectively addressed by clarifying the operative payment terms and the process for resolving any further disputes on computation.
Court Disposition
Application for clarification granted to the extent of specifying payment terms; operative orders issued for computation and payment of dues.
Orders
- Employees declared redundant to be paid one month's salary in lieu of notice as per Section 40(1)(f) of the Employment Act.
- Pay in lieu of annual leave capped at three years for all affected employees.
Full Case Text
Judgment text and source record
33 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO. 2324 OF 2017
(Before Hon. Lady Justice Maureen Onyango)
KENYA SHIPPING, CLEARING AND
WAREHOUSES WORKERS UNION................................................CLAIMANT
VERSUS
SUNRIPE (1976) LIMITED.............................................................RESPONDENT
RULING
This Court in its Judgment delivered on 17th August 2018 ordered the parties herein to agree on the amount payable to 103 of the Respondents employees who held been declared redundant and to report back to court within 30 days. The parties failed to agree on the list of the employees and the amount payable. Consequently, on 7th December 2018 the Applicant filed a Notice of Motion seeking the following orders:
1. Spent.
2. That the Judgment dated on 17th August 2018 be amended by deleting the sentence on page 9 “inline with payments made to 71 employees”.
The Application is supported by the Affidavit of James O. Tongi and is based on grounds that the parties failed to agree on the list and amount payable to 103 employees as directed in the judgment.
The court directed each party to file its tabulation on amount payable and thereafter they filed their respective submissions.
Applicant’s Submissions
The Applicant submitted that its calculation was based on the report dated 18th December 2018 filed in court on 19th December 2018 and Section 40 of the Employment Act in compliance with the Judgment. It submitted that the Respondent failed to understand the Judgment.
The Respondent, on its part, submitted that the Claimant’s list is defective as it contained major errors including duplicated names, names of employees who were still employed by the Respondent and those who voluntarily left the employment.
It submitted that it had never been notified of unresolved issued as regards the 71 grievants and that it had submitted proof that the 71 grievants were paid in full as directed by the labour office.
Determination
In this court’s judgment delivered on 17th August 2018, the court found that the respondent had declared the affected employees redundant and ordered that payment be made to the 103 employees in line with payments made to the 71 employees who had been paid earlier by the respondent pursuant to the Labour Officer’s recommendations. The 71 employees were paid pursuant to the recommendations as follows –
“Recommendation
In light of the findings above, I recommend that the affected employees be paid the following as a basis of mutual settlement in the spirit of ‘give and take.’
Ø One month’s salary in lieu of notice of those employees who were on permanent terms of service and one week’s notice
Ø Accrued leave subject to a maximum of three years.
Ø Ex-gratia payment. This payment to be agreed between management and union.”
The parties having failed to agree as per judgment of the court the court directs that the employees be paid as follows –
1. One month’s salary in lieu of notice as provided in Section40(1)(f) of the Employment Act for all employees including those on temporary/seasonal employment contracts.
2. Pay in lieu of annual leave capped at three (3) years for all employees including those on temporary/seasonal employment contracts.
3. Ex-gratia pay at one (1) month’s salary.
Should parties disagree on the figures they will go to the Labour Officer who will assist them to tabulate the same.
DATED, SIGNED AND DELIVERED AT NAIROBI ON THIS 26TH DAY OF JULY 2019
MAUREEN ONYANGO
JUDGE