George Wesonga Ojwang’ v Kenya National Union of Teachers [KNUT] [2013] KEELRC 10 (KLR)
The bottom line
#Kenya's Industrial Court ordered KNUT to pay a retired chairman over Kshs. 16.6 million in terminal dues, ruling that a negotiated retirement agreement counts even when staff rules say otherwise.
What this practically means
#Executive summary
#Key legal issues
#Validity of the 2nd February 2011 agreement
The agreement was a binding contract superseding other retirement terms; the Principal Officials acted within their mandate
The Court held the agreement signed by the Claimant, the Acting Secretary General and the Acting Treasurer was binding and superseded other retirement terms. The Rules contained only minimum standards which can be improved to the employee's benefit. The Rules had in any event been amended by NEC to adopt a 25-year maximum, endorsing the agreement. There was no justification for departing from what the Principal Officials agreed to pay their former Chairman.
Computation period for terminal benefits
Total years of service must include the entire 25 years, including Busia Branch service
Rule 5.3 defined the relevant period as continuous, uninterrupted employment of the union at branch, national or both. The Claimant joined in April 1986 and left on 31st July 2011, a period of 25 years. The submission that only the 7 years at Head Office counted had no basis under the Rules in either original or amended form.
Alleged advance payments of terminal dues
No material showed the Kshs. 5,800,000 paid between 2008 and 2010 were advances on terminal benefits
The Court found nothing in the meetings, letters or agreements suggesting terminal dues were advanced before retirement. Terminal benefits became payable only after retirement, so payments made from 2008 when the Claimant had just become Chairman could not relate to them; the Claimant explained them as bonuses. The Court found the Respondent shifted position only after the Claimant had retired, in an effort to delay meeting its obligation.
Legal principles established
#- Minimum standards of retirement in staff rules can be varied and improved to the benefit of the employee
- Terminal benefits under Rule 5.3 are computed on continuous uninterrupted employment of the union, whether at branch or national level
Court orders
#- 1.The remaining balance of terminal dues of Kshs. 16,616,209.70 shall be paid by the Respondent to the Claimant within 30 days of the delivery of the Award
- 2.Costs to the Claimant
- 3.Other prayers rejected
- Jurisdiction invoked
- Industrial Court [Procedure] Rules 2010, Rule 21; dispute of an employment/terminal benefits nature within the Industrial Court's mandate
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (2)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Bakery, Confectionary, Food Manufacturing & Allied Workers Union v The Wrigleys Co. (E.A) Limited [2016] KEELRC 1231 (KLR)[2016] KEELRC 1231 (KLR)31 Mar 2016
- Elly Ouma Hongo v Kenya National Union of Teachers (Kisumu East Branch) [2014] KEELRC 245 (KLR)[2014] KEELRC 245 (KLR)17 Sept 2014
Cite this brief
#Cite this brief
Caselaw, "George Wesonga Ojwang’ v Kenya National Union of Teachers [KNUT] [2013] KEELRC 10 (KLR)", Case Analysis (2013). Cause Number 282 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/10/eng@2013-12-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.