[2015] KEHC 710 (KLR)
The court determined that the four employees who retired are entitled to gratuity and service benefit for each year worked, as provided under the relevant clauses of the Collective Bargaining Agreement, less any amounts already paid. Employees declared redundant are entitled to severance pay and notice pay according...
Source-derived case information.
- Citation
- [2015] KEHC 710 (KLR)
- Parties
- Applicant: Kenya Union of Employees of Voluntary and Charitable Organizations (KUEVACO); Respondent: Kenya Union of Commercial Food and Allied Workers (KUCFAW)
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Cause 14 of 2007
- Procedural Posture
- Employment Cause / Quantum Determination; Addendum to Judgment
- Outcome
- Addendum to judgment; quantum determined for retirees and redundant employees.
- Judges
- HS Wasilwa
- Legal Topics
- Retirement Benefits, Redundancy Pay, Collective Bargaining Agreement, Terminal Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Union of Employees of Voluntary and Charitable Organizations (KUEVACO)
Applicant
Kenya Union of Commercial Food and Allied Workers (KUCFAW)
Respondent
Procedural Posture
Employment Cause / Quantum Determination; Addendum to Judgment
Legal Issues
- 1 Whether the retirees are entitled to gratuity, service benefit, and other terminal benefits as per the Collective Bargaining Agreement.
- 2 Whether employees declared redundant are entitled to severance pay and notice pay under the Collective Bargaining Agreement.
- 3 How to compute the balances due to each affected employee after accounting for amounts already paid.
Ratio Decidendi
The court determined that the four employees who retired are entitled to gratuity and service benefit for each year worked, as provided under the relevant clauses of the Collective Bargaining Agreement, less any amounts already paid. Employees declared redundant are entitled to severance pay and notice pay according to their years of service, as stipulated in the CBA. The court adopted the calculations provided by the applicant for the retirees and directed that all other affected employees be paid any outstanding balances after deducting gratuity and amounts already paid. This ruling serves as an addendum to the earlier judgment, clarifying the quantum due to each category of affected...
Court Disposition
Addendum to judgment; quantum determined for retirees and redundant employees.
Orders
- The four retirees (Benjamin Onyango, Phanice Okalo, John Owuor, Mary Indimuli) are to be paid the specified balances due as calculated, after deducting amounts already paid.
- Employees declared redundant are to be paid severance pay for each year worked, leave earned, and pay in lieu of notice, less gratuity pay and amounts already paid.
Full Case Text
Judgment text and source record
45 paragraphs
REPUBLIC OF KENYA
EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO. 14 OF 2007
(Before Hon. Justice Hellen S. Wasilwa on 17th December, 2015)
KENYA UNION OF EMPLOYEES OF VOLUNTARY AND CHARITABLE ORGANIZATIONS (KUEVACO)..CLAIMANT
VERSUS
KENYA UNION OF COMMERCIAL FOOD AND ALLIED WORKERS (KUCFAW)....................................RESPONDENT
RULING
(Addendum to Judgment delivered on 22. 6.2015)
On the 22nd day of June 2015, I ordered that the parties make submissions on quantum in this matter. From the submissions, I find as follows:
From the Claimants Memorandum only 4 employees retired and these are the Benjamin Onyango, Phanice Okalo, John O. Owuor and Mary Indimuli. The rest were declared redundant. For those who retired, they were entitled to the following:- gratuity of 30 days for each year work and this is as provided for under Clause 25 of the Collective Bargaining Agreement. Under Clause 26, such retirees were also entitled to payment of all their terminal benefits. Under Clause 15(c) they were entitled to a service benefit of 30 days per year served. A retiring employee is not entitled to a notice or pay in lieu of notice.
For the 4 retirees therefore their entitlement is as follows:
Benjamin Onyango
Gratuity 32 years of service x 11,857/=
Service benefit of 32 years x 11,857/=
TOTAL = 758,848/=
Less what was paid of Kshs.480,062/=
Balance = 278,786/=
Phanice Okalo
Gratuity 38 years of service x 12,662/= 481,156/=
Service benefit of 38 years x 12,662/= 481,156/=
TOTAL = 962,312/=
Less what was paid of Kshs.448,851/=
Balance due = 513,461/=
John Owuor
Gratuity 20 years of service x 13,081/= 261,620/=
Service benefit of 20 years x 13,081/= 261,620/=
TOTAL = 523,240/=
Less what was paid of Kshs.224,532/=
Balance = 298,708/=
Mary Indimuli
Gratuity 32 years of service x 9,706/= 310,592/=
Service benefit of 32 years x 9,706/= 310,592/=
TOTAL = 621,184/=
Less what was paid of Kshs.374,615/=
Balance due = 246,569/=
For employees declared redundant, they were entitled to severance pay of 30 days for each year worked and notice pay as per years worked according to Article 23 of the Collective Bargaining Agreement. Those of below 5 years - 1 month notice. 5 years and above - 3 months notice.
Following this provision in the Collective Bargaining Agreement therefore, the rest of the employees declared redundant were entitled to redundancy pay plus the notice pay.
From the list submitted, by the Claimant those declared redundant were all to be paid as per the said list less the gratuity pay and amounts already paid. They are therefore entitled each to payment of severance pay for each year worked; leave earned, and pay in lieu of notice. The Claimants should therefore each be paid accordingly any balances due after removal of gratuity pay and what they have each been paid. This ruling will therefore be an addendum of the Judgment already delivered by Court.
Read in open Court this 16th day of December, 2015.
HON. LADY JUSTICE HELLEN WASILWA
JUDGE
In the presence of:
No appearance for Claimant
No appearance for Respondent