Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause Number 799 of 2012· [2014] KEELRC 663 (KLR)

Julius Okello v Payless Car Hire And Tours Limited [2014] KEELRC 663 (KLR)

Industrial Court of Kenya
14 February 2014
400 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

#

What this practically means

#

Executive summary

#
The Claimant, Julius Okello, sued Payless Car Hire and Tours Limited before the Industrial Court at Nairobi seeking terminal benefits after resigning from his position as Accountant on 1st March 2009, having been employed from 6th April 1995. The Respondent filed no Statement and did not attend hearing despite notification, so the Claimant gave evidence ex parte on 17th July 2013. He sought salary for February 2009 (Kshs. 63,412), pay for 37 days of accrued annual leave, severance pay for 13 years worked (Kshs. 549,570), a declaration that termination was unlawful and untimely, and costs with interest. Rika J held that the resignation was voluntary and the Claimant could not attribute it to the Respondent, rejecting the declaration of unlawful termination. Severance pay under section 40 of the Employment Act 2007 was refused because there was no material suggesting redundancy. The Court accepted, unchallenged, the claims for February 2009 salary and 37 days of leave pay, computing leave pay at Kshs. 2,438 per day for 37 days (Kshs. 90,240) and awarding a total of Kshs. 153,832, payable within 30 days. No order was made on costs and interest. The Award was dated and delivered at Nairobi on 14th February 2014.

Key legal issues

#
01

Whether resignation amounts to unlawful and untimely termination

Holding

Not applicable where the employee resigns voluntarily

Reasoning

The Claimant resigned on 1st March 2009 and the Respondent accepted the resignation. The Court held that a claimant who opts to resign and chooses the timing of the resignation cannot attribute that decision to the employer, so there is no basis for a declaration of unlawful termination.

p. 2
02

Entitlement to accrued annual leave and unpaid salary on resignation

Holding

Granted as uncontroverted

Reasoning

With no Response filed and the matter proceeding ex parte, the Court found nothing on the record to doubt the claims for 37 days of annual leave pay and February 2009 salary, computing leave pay at Kshs. 63,412 divided by 26 working days multiplied by 37 days.

p. 2

Legal principles established

#
  • An employee who resigns of his own volition cannot claim that the termination was unlawful or attribute the resignation to the employer
  • Severance pay under section 40 of the Employment Act 2007 is only available where employment ends by redundancy

Court orders

#
  1. 1.The Respondent shall pay to the Claimant 37 days of annual leave pay and salary for the month of February 2009 totalling Kshs. 153,832, within 30 days of the delivery of the Award
  2. 2.No order on the costs and interest

Authorities

#

Legislation

  • Employment Actsection 40
Jurisdiction invoked
Reference to the Industrial Court under the Employment Act 2007; dispute on terminal benefits

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Julius Okello v Payless Car Hire And Tours Limited [2014] KEELRC 663 (KLR)", Case Analysis (2014). Cause Number 799 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/663/eng@2014-02-14

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