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ELRCPartially AllowedCause 2012 of 2011· [2013] KEELRC 471 (KLR)

NEBATI LUGAYE ADAMBER V NJOMBE & SONS ESTATE AGENTS LTD & ANOTHER [2013] KEELRC 471 (KLR)

Industrial Court of Kenya
1 February 2013
1,234 words in judgment
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The bottom line

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A Kenyan driver won partial compensation after unfair termination, but his 12-month salary claim failed because of his short tenure and conduct.

What this practically means

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Executive summary

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The Claimant, employed as a driver by the 1st Respondent to serve the 2nd Respondent from May 2010, sued for unfair termination claiming notice pay, annual leave, travelling allowance, severance pay, house allowance and overtime totalling Shs.142,636, plus 12 months' salary as compensation (Shs.168,000). The Respondents denied the claim and counterclaimed for Shs.44,000. The court found no dispute that the Claimant earned Shs.14,000 monthly and owed Shs.30,000 in salary advances at termination. Notice pay of Shs.14,000 was awarded as the Respondents admitted no notice was given. The leave claim was dismissed as paid; travelling allowance and severance pay were rejected as unproved/inapplicable; house allowance failed because the statutory minimum plus 15% was below the salary paid. Overtime of Shs.49,280 was awarded on a presumption of 2 hours daily overtime. The 12 months' compensation claim was rejected because, although the Claimant received no hearing, his 11-month tenure and admissions weighed against it. Judgment was entered for the Claimant at Kshs.63,280 and for the Respondents on the counterclaim at Shs.30,000 (the admitted amount), offset to yield a net payment of Shs.33,280 within 30 days, failing which the decree may be executed. Judgment read and signed on 1st February 2013 by Lady Justice Maureen Onyango.

Key legal issues

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01

Payment in lieu of notice

Holding

Awarded Shs.14,000 as the Respondents admitted no notice was given

Reasoning

The 2nd Respondent admitted under cross-examination that the Claimant was neither given notice nor paid in lieu upon termination. The employer's own admission established this head of claim, entitling the Claimant to one month's salary in lieu of notice.

p. 2
02

Overtime

Holding

Awarded Shs.49,280 on the presumption of 2 hours' overtime daily for 6 days a week over 11 months

Reasoning

The evidence of both parties established that the Claimant worked beyond ordinary hours, sometimes late and on occasional trips to Othaya. The court presumed an average of 2 hours' overtime for 6 days weekly over 11 months, totalling 528 hours, computed at 1.5 times the hourly rate of Shs.62.20.

p. 2
03

Compensation for unfair termination

Holding

Rejected despite the absence of a hearing

Reasoning

Although the Claimant was never given a hearing before termination, the court weighed his short tenure of 11 months and his admission of being a financial embarrassment to the employer, concluding he had no reasonable expectation of long-term employment and that compensation of 12 months' salary was not warranted.

p. 3
04

Counterclaim for salary advances

Holding

Judgment for Respondents for Shs.30,000 as admitted, offset against the Claimant's award

Reasoning

The Claimant admitted owing Shs.30,000 in salary advances. The court entered judgment for that admitted amount rather than the Shs.44,000 claimed, and directed that it be offset against the sums due to the Claimant, leaving a net payable of Shs.33,280.

p. 3

Legal principles established

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  • An employer who admits not giving notice is liable to pay one month's salary in lieu of notice.
  • Overtime worked but unpaid is payable at 1.5 times the normal hourly rate, and the court may presume its extent from the evidence.
  • Where the salary paid exceeds the statutory minimum wage plus 15% house allowance, an employee has not proved non-payment of house allowance.

Court orders

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  1. 1.Judgment for the Claimant in the total sum of Kshs.63,280
  2. 2.Judgment for the Respondent on the counterclaim in the sum of Shs.30,000
  3. 3.The Respondent shall offset the counterclaim amount and pay the Claimant Shs.33,280 being the difference
  4. 4.Payment to be made within 30 days failing which the Claimant may execute the decree

Authorities

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Legislation

  • Employment ActSection 31
  • Regulation of Wages (General) OrderMinimum rates of pay
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court of Kenya (Employment Act 2007)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "NEBATI LUGAYE ADAMBER V NJOMBE & SONS ESTATE AGENTS LTD & ANOTHER [2013] KEELRC 471 (KLR)", Case Analysis (2013). Cause 2012 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/471/eng@2013-02-01

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.