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ELRCPartially AllowedCause No 593 of 2010· [2014] KEELRC 1171 (KLR)

Alfonce Mua Kasimu v Electrical Card Services Ltd [2014] KEELRC 1171 (KLR)

Industrial Court of Kenya
16 July 2014
1,055 words in judgment
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The bottom line

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The Industrial Court ordered an employer to pay a former accountant Kshs. 50,667 in withheld salary, ruling employers must prove payments with proper records.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as an accountant from 4th November 2008, sued for withheld salary for October and November 2009, leave pay, medical expenses refund, loan and house rent default charges, and damages for breach of contract, alleging constructive dismissal after his salary was withheld, prompting his resignation. The Respondent admitted the employment but denied withholding salary and counterclaimed Kshs. 80,000 as one month's salary in lieu of notice, alleging the Claimant resigned without notice on 6th November 2009. The court framed three issues: whether salary was withheld, whether the resignation was precipitated by the Respondent, and entitlement to reliefs. The court found the Claimant's last working day was 6th November 2009 as stated in his resignation letter, rejecting his testimony that he worked to 30th November for want of corroboration. Applying Section 20 of the Employment Act, 2007, and the principle that employers, as custodians of employee records, bear the burden of proving salary payment, the court found October 2009 salary and 6 days of November 2009 salary unpaid. However, since the resignation letter made no mention of wrongdoing by the Respondent, the constructive dismissal claim failed, as did the unproven claims for medical expenses, default charges and damages. The counterclaim for notice pay was partially allowed, with 13 leave days offset against notice, leaving a 17-day shortfall. The court awarded a net Kshs. 50,667 to the Claimant and ordered each party to bear their own costs.

Key legal issues

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01

Whether the Respondent withheld the Claimant's salary

Holding

The Respondent failed to prove payment; the Claimant was owed October 2009 salary and 6 days of November 2009 salary

Reasoning

The Respondent produced no evidence of payment. Section 20 of the Employment Act, 2007 requires an itemised pay statement at or before payment; the employer as custodian of employee records bears the burden of proving payment and cannot rely on the absence of records to defeat the employee's case.

p. 2
02

Whether the resignation was constructive dismissal

Holding

No constructive dismissal; the claim failed

Reasoning

The resignation letter dated 6th November 2009 made no mention of any negative circumstances created by the Respondent forcing the resignation. The court applied the definition of constructive dismissal requiring the employer to have rendered continued employment intolerable.

p. 3
03

Respondent's counterclaim for one month's notice pay

Holding

Partially allowed; Claimant's 13 pending leave days covered notice, leaving a 17-day shortfall

Reasoning

The Claimant's resignation letter offered his 13 pending leave days in lieu of notice. The court found a shortfall of 17 days in the notice period and allowed the counterclaim to that extent, computing Kshs. 45,333, which was offset against the salary award.

p. 3

Legal principles established

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  • An employer, as custodian of employee records, bears the burden of proving payment of salary; failure to provide an itemised pay statement under Section 20 of the Employment Act means absence of records cannot defeat the employee's claim.
  • Definition of constructive dismissal as adopted from Emmanuel Mutisya Solomon v Agility Logistics

Court orders

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  1. 1.Award to the Claimant of salary for October 2009 (Kshs. 80,000) and salary for 6 days in November 2009 (Kshs. 16,000), less notice pay shortfall of Kshs. 45,333, totalling Kshs. 50,667
  2. 2.Dismissal of the claim for constructive dismissal
  3. 3.Dismissal of the claims for medical expenses refund, loan and house rent default charges, leave pay and damages for breach of contract
  4. 4.Partial allowance of the Respondent's counterclaim for notice pay
  5. 5.Each party to bear their own costs

Authorities

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Legislation

  • Employment Act, 2007Section 20

Cases cited (1)

  • Emmanuel Mutisya Solomon Vs Agility Logistics
    Industrial Court Cause No 1448 of 2011
Jurisdiction invoked
Industrial Court of Kenya (as established under the Labour Relations Act) hearing an employment cause; no specific constitutional provision invoked

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Alfonce Mua Kasimu v Electrical Card Services Ltd [2014] KEELRC 1171 (KLR)", Case Analysis (2014). Cause No 593 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1171/eng@2014-07-16

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