[2019] KEELRC 980 (KLR)

[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
Employment and Labour Redundancy Procedure Terminal Benefits Statutory Entitlements Ex Gratia Payments

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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

  1. 1 Whether the judgment delivered on 17th August 2018 required amendment regarding the payment terms for the 103 employees declared redundant.
  2. 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.