[2019] KEELRC 596 (KLR)
The court found that the claimant was entitled to terminal benefits as claimed, based on the produced CBA. However, since the claimant resigned without giving the required two months' notice, the respondent was entitled to deduct the equivalent of two months' salary in lieu of notice from the terminal benefits. The...
Source-derived case information.
- Citation
- [2019] KEELRC 596 (KLR)
- Parties
- Claimant: Stephen Maenya Ogutu; Respondent: The Great Lakes Hotel
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Cause 198 of 2017
- Procedural Posture
- Employment Claim / Judgment
- Outcome
- judgment for the claimant, subject to deduction for notice pay
- Judges
- MN Nduma
- Legal Topics
- Terminal Benefits, Resignation Without Notice, Collective Bargaining Agreement, Notice Pay Deduction
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Stephen Maenya Ogutu
Claimant
The Great Lakes Hotel
Respondent
Procedural Posture
Employment Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to payment of terminal benefits as claimed.
- 2 Whether the respondent is entitled to deduct two months salary in lieu of notice from the claimant's terminal benefits.
Ratio Decidendi
The court found that the claimant was entitled to terminal benefits as claimed, based on the produced CBA. However, since the claimant resigned without giving the required two months' notice, the respondent was entitled to deduct the equivalent of two months' salary in lieu of notice from the terminal benefits. The net award to the claimant was therefore Kshs. 115,800, being the total terminal benefits less the notice pay deduction. The sum is payable with interest at court rates from the date of filing suit until payment in full, and the respondent is to pay the costs of the suit.
Court Disposition
judgment for the claimant, subject to deduction for notice pay
Orders
- Judgment entered in favour of the claimant for Kshs. 115,800, being terminal benefits less two months salary in lieu of notice.
- The sum awarded is payable with interest at court rates from the date of filing suit until payment in full.
Full Case Text
Judgment text and source record
23 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT KISUMU
CASE NO. 198 OF 2017
(Before Hon. Justice Mathews N. Nduma)
STEPHEN MAENYA OGUTU.................................CLAIMANT
VERSUS
THE GREAT LAKES HOTEL...........................RESPONDENT
J U D G M E N T
1. The claimant prays for payment of terminal benefits in the sum of Kshs. 155,800 comprising of service pay, commuter allowance, leave travelling allowance, unpaid leave days, housing allowance and wage increment.
2. The claimant tendered his resignation on 26th October 2015 with immediate effect.
3. The claim for payment of terminal benefits in the sum of Kshs. 155,800 is not opposed by the respondent except that the respondent submits in their written submissions filed on 21st May 2019 that the claimant ought to pay two (2) months salary in lieu of notice not served in the sum of Kshs. 20,000 in terms of clause 9(b) of the Memorandum of Agreement between the Kenya Union of Domestic, Hotels, Education Institutions, Hospitals and Allied Workers (KUDHEIHA Workers) and the respondent for the period 1st April 2013 to 1st April 2015 CBA.
4. The CBA was indeed produced by the claimant as the basis for the terminal benefits sought in this matter.
5. The court is satisfied that the claimant resigned from employment without giving notice to the respondent. The claimant had served the respondent for a period of two years and in terms of clause 6(b) of the CBA, he ought to have served two(2) months’ notice upon resignation and in default pay the equivalent of two months salary in lieu of notice.
6. Accordingly, judgment is entered in favour of the claimant against the respondent in the sum of Kshs. 155,800 les Kshs 40,000 in lieu of two (2) months notice in the sum of Kshs. 40,000 giving a total award of Kshs. 115,800.
7. The sum is payable with interest at court rates from date of filing suit till payment in full.
8. The respondent to pay costs of the suit.
Judgment Dated, Signed and delivered this 24th day of October, 2019
Mathews N. Nduma
Judge
Appearances
Mr. Waka for Claimant.
Mr. Abira for Respondent
Chrispo – Court Clerk