[2023] KEELRC 1321 (KLR)
The court found that the respondent's computation of gratuity was fundamentally flawed, as it failed to apply the 31% rate to the total annual income as required by the HR Manual. The court accepted the claimant's computation, which correctly applied the 31% rate to the total annual income for each year worked, and...
Source-derived case information.
- Citation
- [2023] KEELRC 1321 (KLR)
- Parties
- Applicant: Burt Aggrey Odhiambo; Respondent: University of Nairobi Enterprises & Service Board
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause E497 of 2021
- Procedural Posture
- Employment Cause / Ruling on Computation of Terminal Dues
- Outcome
- Claim allowed in full for the sum claimed by the claimant.
- Judges
- Nzioki wa Makau
- Legal Topics
- Terminal Benefits, Gratuity Calculation, Payment in Lieu of Notice, Unutilized Leave, Interest on Awards
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Burt Aggrey Odhiambo
Applicant
University of Nairobi Enterprises & Service Board
Respondent
Procedural Posture
Employment Cause / Ruling on Computation of Terminal Dues
Legal Issues
- 1 Whether the respondent correctly computed the claimant's terminal dues including gratuity, notice pay, leave, and salary.
- 2 Whether the claimant is entitled to the sum claimed and interest thereon.
Ratio Decidendi
The court found that the respondent's computation of gratuity was fundamentally flawed, as it failed to apply the 31% rate to the total annual income as required by the HR Manual. The court accepted the claimant's computation, which correctly applied the 31% rate to the total annual income for each year worked, and included payment in lieu of notice, unutilized leave, and pro rata salary. The court therefore awarded the claimant the sum of Kshs. 1,210,822.85, with interest from the date of judgment and costs of the suit.
Court Disposition
Claim allowed in full for the sum claimed by the claimant.
Orders
- The respondent shall pay the claimant Kshs. 1,210,822.85 as terminal dues.
- The sum shall attract interest at court rates from April 18, 2023 until payment in full.
Full Case Text
Judgment text and source record
17 paragraphs
Odhiambo v University of Nairobi Enterprises & Service Board (Cause E497 of 2021) [2023] KEELRC 1321 (KLR) (23 May 2023) (Ruling)
Neutral citation: [2023] KEELRC 1321 (KLR)
Republic of Kenya
In the Employment and Labour Relations Court at Nairobi
Cause E497 of 2021
Nzioki wa Makau, J
May 23, 2023
Between
Burt Aggrey Odhiambo
Claimant
and
University of Nairobi Enterprises & Service Board
Respondent
Ruling
1. The respondent was to compute the terminal dues the claimant is entitled to including the gratuity for years worked. The respondent has computed a sum of Kshs. 82,282. 68 as gratuity, payment in lieu of Notice – Kshs. 123,596/-, pro rata salary for June (3 days) – Kshs. 12,360/- making the sum payable as Kshs. 177,486. 60 after tax. The claimant on his part computes as a sum of Kshs. 1,210,822/- as the sum due. Gratuity is Kshs. 1,029,547. 85, payment in lieu of notice – Kshs. 123,596/-, unutilized leave days are 11 days amounting to Kshs. 45,319/- and pro rata salary for June (3 days) Kshs. 12,360/-.
2. The gratuity due is 31% of basic pay per the HR Manual of the respondent. The gratuity due is earned each month worked and is not for one month. It is the total income for the year in question multiplied by the rate (31%). The calculation by the respondent is so erroneous it is laughable. I concur with the claimant that the amount due is Kshs. 1,210,822. 85 as the final pay comprising of Kshs. 1,029,547. 85 as gratuity, Kshs. 123,596/- as notice, leave dues 45,319/- and salary for June (3 days) Kshs. 12,360/-. The claimant is entitled to interest from the date of judgment at court rates on the sum of Kshs. 1,210,822. 85, namely April 18, 2023. The claimant is also entitled to costs of the suit.It is so ordered.
DATED AND DELIVERED AT NAIROBI THIS 23RD DAY OF MAY 2023Nzioki wa MakauJUDGE