[2017] KEELRC 1349 (KLR)
The court found that the claimant was employed by the respondents as a waiter from May 2013 to July 2016 and her employment was terminated on account of redundancy. The respondents failed to serve the requisite redundancy notice as mandated by section 40 of the Employment Act, 2007. This procedural lapse rendered...
Source-derived case information.
- Citation
- [2017] KEELRC 1349 (KLR)
- Parties
- Claimant: Nancy Wambui Muturi; Respondent: Michael Muraya Kirara; Respondent: Harisson Mbaru Kihara
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nyeri
- Jurisdiction
- Kenya
- Case Number
- Cause 185 of 2016
- Procedural Posture
- Employment Cause / Judgment
- Outcome
- judgment for the claimant
- Judges
- B Ongaya
- Legal Topics
- Redundancy Procedure, Unfair Termination, Severance Pay, Annual Leave Entitlement, Underpayment of Wages
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Nancy Wambui Muturi
Claimant
Michael Muraya Kirara
Respondent
Harisson Mbaru Kihara
Respondent
Procedural Posture
Employment Cause / Judgment
Legal Issues
- 1 Whether the claimant was unfairly terminated on account of redundancy without proper notice as required by law.
- 2 Whether the claimant is entitled to terminal dues including pay in lieu of notice, public holidays, annual leave, severance pay, underpayment, and service pay.
- 3 Whether the claim for house allowance is justified.
Ratio Decidendi
The court found that the claimant was employed by the respondents as a waiter from May 2013 to July 2016 and her employment was terminated on account of redundancy. The respondents failed to serve the requisite redundancy notice as mandated by section 40 of the Employment Act, 2007. This procedural lapse rendered the termination unfair. Consequently, the claimant was entitled to one month’s pay in lieu of notice and compensation equivalent to six months’ pay under section 49(1)(c) of the Act. The court also found that the claimant was entitled to payment for public holidays, accrued annual leave for three years, severance pay, underpayment of wages, and service pay. The claim for house...
Court Disposition
judgment for the claimant
Orders
- The respondents to pay the claimant Kshs.259,344.00 by 01.07.2017, failing which interest at court rates to be payable from the date of judgment until full payment.
- The respondents to pay the claimant’s costs of the suit.
Full Case Text
Judgment text and source record
30 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT OF KENYA AT NYERI
CAUSE NO.185 OF 2016
NANCY WAMBUI MUTURI.............................................. CLAIMANT
VERSUS
MICHAEL MURAYA KIRARA.............................1ST RESPONDENT
HARISSON MBARU KIHARA..........................2ND RESPONDENT
(BOTH RESPONDENTS TRADING AS METUMI BAR)
(Before Hon. Justice Byram Ongaya on Friday 12th May, 2017)
JUDGMENT
The claimant filed the memorandum of claim on 07. 09. 2016 through Kirubi Mwangi Ben & Company Advocates. The claimant prayed for judgment against the respondent for:
a) Payment of terminal dues of Kshs. 398, 895. 00 being one month pay in lieu of notice Kshs. 10, 497. 00; public holidays Kshs. 10, 497. 00; annual leave for 3 years Kshs. 22, 043. 70; service gratuity at 15 days per year for 3 years served Kshs.15, 745. 50; underpayment of wages Kshs.155, 889. 60; house allowance Kshs.58, 258. 00; and 12 months pay for compensation for unfair termination Kshs.125, 964. 00.
b) Costs of the suit and interest.
c) Any other or better relief the honourable court may deem fit to grant.
The response to the claim was filed on 11. 10. 2016 through Kimwere Josphat & Company Advocates. The respondent prayed that the respondent’s claim be dismissed with costs.
The parties agreed that the suit be determined on the basis of pleadings, documents and submissions on record. The court has taken into account all the material on record and makes findings on the issues in dispute as follows:
a) There is no dispute that the parties were in a contract of employment and there is no dispute about the period the employment subsisted. The claimant was employed by the respondents as a waiter at the bar from May 2013 to July 2016 when her services were terminated on account of redundancy.
b) As redundancy notice was not served per section 40 of the Employment Act, 2007 and taking into account the period of service of 3 years, the claimant is awarded one month pay in lieu of termination notice and a further six months’ pay under section 49(1) (c) of the Act. While making that award the court finds that the claimant was unfairly dismissed as the relevant redundancy notice was not served. The award is for Kshs.65, 604. 00 the claimant’s statutory monthly pay being Kshs. 9, 372. 0 0.
c) The claim on public holidays is awarded at Kshs. 9, 372. 00 as submitted for respondents.
d) As the claimant served for 3 years, annual leave accrued in view of section 28(1) (a) of the Act. The claimant is awarded Kshs.28, 116. 00 being 3 months’ pay in lieu of 3 years’ annual leave.
e) As the claimant served for 3 complete years, severance pay is awarded at Kshs. 14, 058. 00 being half month pay for each year served in view of section 40 (1) (g) of the Act.
f) The claimant is awarded underpayment at 38 months served at statutory monthly wage Kshs. 9, 372 less monthly wage as paid Kshs.6000 per month and the difference is Kshs.3, 372. 0 times 38 months making thus Kshs.128, 136. 00.
g) Service pay is awarded at Kshs.14, 058. 00 as submitted for the respondent.
h) There was no evidence on the claim for house allowance and the same is deemed unjustified. The basis of the formulae as invoked in the submissions for the respondent was not explained or justified.
In conclusion judgment is entered for the claimant against the respondents for:
a) The respondents to pay the claimant Kshs.259, 344. 00 by 01. 07. 2017 failing interest at court rates to be payable thereon from the date of this judgment till full payment.
b) The respondents to pay the claimant’s costs of the suit
Signed, datedanddeliveredin court atNyerithisFriday, 12th May, 2017.
BYRAM ONGAYA
JUDGE