[2006] KEELRC 10 (KLR)
The Court found that the Hotel was liable for the audited service charge underpayment of Kshs. 1,477,939.00 for the period 1985 to 1993. The Court rejected the Minister for Labour's findings and recommendations, holding that the statutory and contractual obligations required the Hotel to pay the full amount, with...
Source-derived case information.
- Citation
- [2006] KEELRC 10 (KLR)
- Parties
- Applicant: Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals & Allied Workers; Respondent: SixEighty Hotel (owned by Sentrim Kenya Ltd.)
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 112 of 2003
- Procedural Posture
- Employment Dispute / Final Award
- Outcome
- claim allowed in full with interest
- Legal Topics
- Service Charge Entitlement, Wage Underpayment, Collective Bargaining, Statutory Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals & Allied Workers
Applicant
SixEighty Hotel (owned by Sentrim Kenya Ltd.)
Respondent
Procedural Posture
Employment Dispute / Final Award
Legal Issues
- 1 Whether the Hotel was liable to pay the audited service charge underpayment totaling Kshs. 1,477,939.00 for the period 1985 to 1993.
- 2 Whether the payment should include all employees, including those who have left employment or their next of kin.
- 3 Whether the amount should be paid with interest and without deductions.
Ratio Decidendi
The Court found that the Hotel was liable for the audited service charge underpayment of Kshs. 1,477,939.00 for the period 1985 to 1993. The Court rejected the Minister for Labour's findings and recommendations, holding that the statutory and contractual obligations required the Hotel to pay the full amount, with 12% per annum interest, to all affected employees, including those who had left employment or their next of kin. The Court ordered payment in six equal instalments for current employees and lump sum payments for former employees or their next of kin, without any deductions.
Court Disposition
claim allowed in full with interest
Orders
- The Hotel shall pay Kshs. 1,477,939.00, together with 12% per annum interest, to all its employees for the period 1985 to 1993.
- Payment to current employees shall be made in six equal instalments, the first at the end of October 2006 and thereafter every three months until full payment.
Full Case Text
Judgment text and source record
24 paragraphs
REPUBLIC OF KENYA.
IN THE INDUSTRIAL COURT OF KENYA
AT NAIROBI.
(Coram: Charles P. Chemmuttut, J.,
J.M. Kilonzo & A.M. Yarrow, Members.)
CAUSE NO. 112 OF 2003.
KENYA UNION OF DOMESTIC, HOTELS,
EDUCATIONALINSTITUTIONS, HOSPITALS & ALLIED WORKERS.................Claimants.
v.
SIXEIGHTY HOTEL (owned by Sentrim Kenya Ltd.)....................................Respondents.
Issue in Dispute:-
“Refusal by the Management to pay audited service chargeunderpayment totaling to Kshs.1,477,939. 00. ”
Mr. S.N. Mwari for the Claimants (hereinafter called the Union).
Mr. Raphael Warui, Advocate, of Warui & Co., Advocates, for theRespondents (hereinafter called the Hotel).
A W A R D.
The Notification of Dispute, Form ‘A’, dated 16th October, 2003, duly signed by the authorized representatives of the parties, together with the statutory certificate from the Labour Commissioner under Section 14(7) and (9)(e) of the Trade Disputes Act, Cap. 234, Laws of Kenya (which is hereinafter referred to as the Act), were received by Court on 5th November, 2003.
In view of the foregoing, we take great exception to the findings and recommendation of the Minister for Labour.
Accordingly, and keeping all the circumstances of this dispute in mind, the Court finds that the Hotel is liable, and awards that it should pay the aforementioned amount of Kshs. 1,477,939/=, together with 12% per annum interest thereon, without any deductions whatsoever, to all its employees, including those who have since left their employment or their next of kin, for the relevant period under consideration, i.e. 1985 to 1993. The Court so orders.
Finally, the Court directs that the Hotel should pay the total amount to their employees who are still in employment in six equal instalments, the first instalment of which should be paid at the end of October, 2006, and thereafter at an interval of every three months until payment in full. Those employees who have since left the Hotel employment, or their next of kin, should be paid their shares in a lump sum.
DATED and delivered at Nairobi this 14th day of September, 2006.
Charles P. Chemmuttut, MBS.,
JUDGE.
J.M. Kilonzo, O.A. Wafula,
MEMBER.MEMBER.