Beatrice Wayeko (Suing As Administratrix Of The Estate Of Oscar Smith Njinuli-Deceased) v Cellulant Kenya Limited [2014] KEELRC 836 (KLR)
The bottom line
#Kenya's Industrial Court ruled that paying a deceased employee's terminal dues to a named 'next of kin' doesn't legally discharge the employer; Cellulant still had to pay the estate.
What this practically means
#Executive summary
#Key legal issues
#Terms of employment - what was the Deceased's position
The Deceased was a Customer Care Representative as per the employment confirmation letter, not a Salesman
The court held that terms and conditions of employment are evidenced by a letter from the employer or a signed contract. Where the position is expressly stated in an employer-issued letter, a death certificate entry cannot counter it. The letter dated 8th December 2008 confirming the position of Customer Care Representative prevailed over the Certificate of Death.
Whether the Deceased died in the course of employment
He was not on duty at the time of the accident; no damages could lie
The accident occurred on a public holiday away from the work station in a vehicle unconnected to the Respondent. The claimant mother was not privy to the deceased's work schedules, so her assertion that he was on duty was rejected and the Respondent's account adopted.
Effect of the Discharge Voucher and payment to a nominated next of kin
Payment to Lucy Mukami was made in error; the Discharge Voucher is of no effect
The Staff Information Sheet's execution cast doubt on its authenticity, it named Mukami only as next of kin not beneficiary, and the Respondent by distributing final dues assumed a role outside its province contrary to Section 45(1) of the Law of Succession Act and Section 24(2) of the Employment Act. The Respondent should have deposited the dues with a labour officer under Section 24(4).
Unremitted NSSF and NHIF contributions
Claim dismissed; such dues are payable to the statutory bodies, not claimants
Following Mbaru J's decision in Stephen Mbuvi Kathoka, unremitted statutory deductions go to the statutory bodies; the proper remedy is a service pay claim under Section 35(5) of the Employment Act. That prayer was not pleaded and its introduction in submissions was an irregular amendment of pleadings.
Legal principles established
#- Where an employee's position is expressly stated in a letter issued by the employer, an entry in a Certificate of Death cannot contradict it
- A next-of-kin nomination in a staff information sheet does not vest terminal dues in that person nor oust the Law of Succession Act; payment to such a person does not discharge the employer
- Unremitted NSSF and NHIF dues are payable to the respective statutory bodies and not to claimants; the proper prayer is service pay under Section 35(5) of the Employment Act
- An employer unable to determine the proper recipient of a deceased employee's dues should avail itself of Section 24(4) of the Employment Act and deposit the benefits with a labour officer
- Where an employer fails to produce leave records as required under Sections 10 and 74 of the Employment Act, the court may invoke Section 10(7) in favour of the employee's claim
Court orders
#- 1.Award of Kshs 8,407 being 9 days' salary due in April 2009
- 2.Award of Kshs 39,233 being leave pay
- 3.Total award of Kshs 47,640 in favour of the Claimant
- 4.Costs of the case awarded to the Claimant
- 5.Interest on the award at court rates from the date of the award until payment in full
- Jurisdiction invoked
- Employment and labour relations dispute under the Industrial Court's statutory jurisdiction (Employment Act, 2007 invoked)
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.
- Prabhulal Tejpar Haria & Another v Pravinchandra Meghji Dodhia & Others[2017] KEHC 9896 (KLR)17 Mar 2017
- Fred Masambaka v Babs Security Services [2014] KEELRC 1181 (KLR)[2014] KEELRC 1181 (KLR)22 Jul 2014followed
Cite this brief
#Cite this brief
Caselaw, "Beatrice Wayeko (Suing As Administratrix Of The Estate Of Oscar Smith Njinuli-Deceased) v Cellulant Kenya Limited [2014] KEELRC 836 (KLR)", Case Analysis (2014). Cause No 728 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/836/eng@2014-03-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.