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ELRCDismissedCause No 226 of 2013· [2014] KEELRC 830 (KLR)

George Obonyo v Timesales Limited [2014] KEELRC 830 (KLR)

Employment and Labour Relations Court
28 February 2014
BOByram Ongaya
436 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court confirmed that an employee who signs a full and final settlement cannot later sue for extra allowances unless they prove entitlement.

What this practically means

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Executive summary

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The claimant, a former employee of the respondent, filed a memorandum of claim on 9 May 2011 seeking Kshs.115,552.00 being house allowance and seniority allowance, together with costs and any other relief. The respondent, through the Federation of Kenya Employers, filed a memorandum of response seeking dismissal of the suit with costs. At the hearing on 2 December 2013 the claimant testified while the respondent relied on documents without calling a witness. It was common ground that the claimant was employed as a carpenter grade III effective 30 June 1976 and retired with effect from 31 August 2009. On retirement he was paid Kshs.325,691.00 per the September 2009 payslip as his retirement package, although the respondent did not disclose the formula used. The claimant relied on the respondent's own calculations (appendix 1 to the response) showing a package of Kshs.396,198.00. However, the claimant had signed a final settlement acknowledging receipt of the cheque for Kshs.325,691.00 as full and final settlement with no further claim. The respondent argued the claimant was bound by that release and that the sum paid was arrived at upon taxation of the entitlement. The court found the claimant had not established the basis for the house allowance and seniority allowance claims and was bound by the signed final settlement. The memorandum of claim was dismissed with costs on 28 February 2014.

Key legal issues

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01

Whether the claimant could claim house and seniority allowances after accepting full and final settlement

Holding

The claimant was bound by the final settlement and his claim failed

Reasoning

The claimant signed Appendix 2 acknowledging receipt of Kshs.325,691.00 as full and final settlement with no other claim against the respondent. He gave no evidence establishing any entitlement to the unpaid allowances, and the respondent showed the package was computed from its own calculation of Kshs.396,198.00 and taxed down to the amount paid.

p. 2
02

Whether the claimant established entitlement to house allowance and seniority allowance

Holding

He did not

Reasoning

The claimant bore the burden of proving the contractual or statutory basis for the allowances claimed. Having opted not to establish any basis, and given the respondent's calculation evidence and the signed release, the claim could not stand.

p. 2

Legal principles established

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  • A claimant who signs a final settlement acknowledging full and final payment is bound by it and cannot later claim further allowances.

Court orders

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  1. 1.The claimant's memorandum of claim is dismissed with costs
Jurisdiction invoked
Employment and labour relations jurisdiction (memorandum of claim under the Court's employment dispute procedures)

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, "George Obonyo v Timesales Limited [2014] KEELRC 830 (KLR)", Case Analysis (2014). Cause No 226 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/830/eng@2014-02-28

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