[2024] KEELRC 2402 (KLR)

[2024] KEELRC 2402 (KLR)

The court found that the Respondent's failure to pay salaries for five months and removal of machinery, thereby depriving the Claimants of work, constituted a fundamental breach of the employment contracts. This amounted to constructive dismissal. The Respondent admitted non-payment of salaries and did not contest...

Source-derived case information.

Citation
[2024] KEELRC 2402 (KLR)
Parties
Applicant: Leo Otieno Obuya; Applicant: Lucas K. Mwomola; Applicant: Francis Gatu; Respondent: Valuepak Foods Limited
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nairobi
Jurisdiction
Kenya
Case Number
Cause 1297 of 2016
Procedural Posture
Employment Cause / Judgment
Outcome
Judgment for the Claimants; declaration of constructive dismissal; awards for unpaid salary, compensation for unfair termination, and notice pay; interest and costs granted.
Judges
K Ocharo
Legal Topics
Constructive Dismissal, Unpaid Wages, Compensation for Unfair Termination, Notice Pay, Employment Contracts, Statutory Entitlements
Source Language
en
Employment and Labour Constructive Dismissal Unpaid Wages Compensation for Unfair Termination Notice Pay Employment Contracts Statutory Entitlements

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Parties

Leo Otieno Obuya

Applicant

Lucas K. Mwomola

Applicant

Francis Gatu

Applicant

Valuepak Foods Limited

Respondent

Procedural Posture

Employment Cause / Judgment

  1. 1 Whether the Claimants were constructively dismissed from employment by the Respondent.
  2. 2 Whether the Claimants are entitled to the reliefs sought, including unpaid salaries, compensation, and notice pay.

Ratio Decidendi

The court found that the Respondent's failure to pay salaries for five months and removal of machinery, thereby depriving the Claimants of work, constituted a fundamental breach of the employment contracts. This amounted to constructive dismissal. The Respondent admitted non-payment of salaries and did not contest the claims at hearing. The Claimants established their case to the requisite standard. The court held that the Claimants were entitled to unpaid salaries for October 2015 to February 2016, compensation for unfair termination as per Section 49 of the Employment Act, and one month's salary in lieu of notice. The claim for accrued leave was declined as the constructive dismissal...

Court Disposition

Judgment for the Claimants; declaration of constructive dismissal; awards for unpaid salary, compensation for unfair termination, and notice pay; interest and costs granted.

Orders

  • A declaration that the Claimants were unfairly constructively dismissed from employment.
  • The Respondent shall pay each Claimant unpaid salary for October 2015 to February 2016 as per their last salary.