[2020] KEELRC 190 (KLR)

[2020] KEELRC 190 (KLR)

The court found that while the redundancy itself was lawful and in accordance with Section 40 of the Employment Act and the CBA, the computation of terminal dues was flawed because it was based on basic pay rather than gross pay. The claimants are entitled to the difference between what was paid and what should have...

Source-derived case information.

Citation
[2020] KEELRC 190 (KLR)
Parties
Applicant: Kenya Union of Commercial Food and Allied Workers; Applicant: Claimants in Kisumu Chief Magistrates Court in Employment Case No. 408 of 2019; Respondent: Choppies Enterprises Kenya Limited; Respondent: Mr. Parin Bharatkumar Patel; Respondent: Mr. Ashwin Kshemendran; Respondent: Mr. Mithun Chulliparambil Gopalakrishnan
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nairobi
Jurisdiction
Kenya
Case Number
Commercial Civil Case 408 & Kisumu CMELRC 408 of 2019
Procedural Posture
Employment Cause / Judgment
Outcome
Partly allowed. Redundancy upheld as lawful; claimants entitled to difference between gross and basic pay for terminal dues, refund of unlawful deductions, soap allowance, and costs. Other claims dismissed.
Judges
DO Ogal
Legal Topics
Redundancy Procedure, Collective Bargaining Agreements, Terminal Benefits, Severance Pay, Unlawful Deductions, Notice Requirements
Source Language
en
Employment and Labour Redundancy Procedure Collective Bargaining Agreements Terminal Benefits Severance Pay Unlawful Deductions Notice Requirements

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 5 Authorities cited 19 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Kenya Union of Commercial Food and Allied Workers

Applicant

Claimants in Kisumu Chief Magistrates Court in Employment Case No. 408 of 2019

Applicant

Choppies Enterprises Kenya Limited

Respondent

Mr. Parin Bharatkumar Patel

Respondent

Mr. Ashwin Kshemendran

Respondent

Mr. Mithun Chulliparambil Gopalakrishnan

Respondent

Procedural Posture

Employment Cause / Judgment

  1. 1 Whether the redundancy process complied with the Employment Act and the Collective Bargaining Agreement.
  2. 2 Whether terminal dues were correctly computed based on gross pay or basic pay.
  3. 3 Whether the claimants are entitled to additional payments for gratuity, service pay, soap allowance, and other benefits.

Ratio Decidendi

The court found that while the redundancy itself was lawful and in accordance with Section 40 of the Employment Act and the CBA, the computation of terminal dues was flawed because it was based on basic pay rather than gross pay. The claimants are entitled to the difference between what was paid and what should have been paid on the basis of gross pay for severance and notice. The claim for gratuity fails as it is not provided for in redundancy under the CBA or statute. The claim for soap allowance succeeds at Kshs.100 per month due to lack of evidence of provision by the employer. The claim for house allowance fails as it was settled. The claim for leave travelling allowance fails for...

Court Disposition

Partly allowed. Redundancy upheld as lawful; claimants entitled to difference between gross and basic pay for terminal dues, refund of unlawful deductions, soap allowance, and costs. Other claims dismissed.

Orders

  • Claimants to be paid the difference between terminal dues computed on gross pay and basic pay.
  • Respondent to refund unlawful deductions for absent days and unreturned company property.