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ELRCPartially AllowedMemorandum of Claim filed 26 March 2014 (Cause, Industrial Court, Mombasa)· [2014] KEELRC 1243 (KLR)

Kenya Union of Domestic, Hotels, Educational Institutions & Hospital Workers v Young Women Christian Association (Cause 114 of 2014) [2014] KEELRC 1243 (KLR)

Industrial Court of Kenya
12 September 2014
2,611 words in judgment
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The bottom line

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The Industrial Court in Mombasa ordered YWCA to pay ten workers months of unpaid wages, CBA salary arrears, long service awards and uniform allowances, and to issue pay slips.

What this practically means

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Executive summary

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The Union, acting for ten Grievants employed by the Young Women Christian Association's Mombasa operations, filed a Memorandum of Claim on 26 March 2014 after failed conciliation of a trade dispute concerning non-payment of wages, salary arrears from 2010 at Collective Bargaining Agreement rates, non-issuance of pay slips, non-payment for annual leave, overtime, uniforms and long service awards. A preliminary objection by the Respondent - that the Claim was defective under Order 4 rule 2 of the Civil Procedure Rules for not stating exact sums and lacking verifying affidavit authority - was dismissed because the Industrial Court (Procedure) Rules, 2010 govern the content of Claims and the Union had annexed a schedule of amounts. At hearing, the Respondent admitted financial difficulties since 2008, that salaries were last paid in October/November 2013, that advances had been made, and that long service awards had been erroneously omitted. Because the real dispute was arithmetical, the Court directed the parties to submit computations to the County Labour Officer, whose report of 5 August 2014 the Court largely adopted. The Court held that failure to pay wages when due breached an essential term of the employment contract; that an employer assigning duties to allegedly unqualified staff cannot deny them CBA-rate wages ('it cannot blow hot and cold'); and that pay slips must be issued regardless of wage arrears. Judgment was entered for each Grievant for salary arrears, unpaid salaries to July 2014, long service awards and uniform allowance, with post-claim advances deductible, and each party ordered to bear its own costs.

Key legal issues

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01

Statutory duty to pay wages

Holding

The Respondent breached a fundamental term by failing to pay wages when due; awards computed per the County Labour Officer's tabulations less advances

Reasoning

Section 18 of the Employment Act, 2007 obliges employers to pay wages as they fall due or as agreed. Both of the Respondent's witnesses admitted salaries were last paid in October/November 2013 and that only advances had since been given. The Court therefore found for the Grievants on the amounts calculated by the County Labour Officer, less any advances paid after the filing of the Claim.

p. 4
02

Salary arrears based on CBA rates despite qualification objections

Holding

The Respondent, having assigned duties to Grievants it claimed were unqualified, could not resist payment at the CBA rates for those designations

Reasoning

The Respondent contended some Grievants lacked qualifications for the posts they held, computing arrears on payroll rather than CBA rates. The Court held the employer knew it was assigning duties to persons not qualified, the work was satisfactorily performed, and it would be inequitable to deny payment on that basis. The Labour Officer's computations factoring actual payments were adopted.

p. 4
03

Long service awards and uniform allowance

Holding

Long service awards were not disputed and uniform allowance was due as uniforms were not provided as required by the CBA; Labour Officer's computations adopted

Reasoning

The Respondent's own witness admitted long service awards had been erroneously omitted from payment despite tabulation. Uniforms were not provided as clause 21 of the CBA required, and the Respondent's witness conceded the financial situation did not allow provision of uniforms. The Court adopted the County Labour Officer's computations for both heads.

p. 5
04

Preliminary objection to the Memorandum of Claim

Holding

Objection dismissed; Order 4 rule 2 of the Civil Procedure Rules inapplicable as the Industrial Court (Procedure) Rules, 2010 govern the content of Claims, and the Union had annexed a schedule of amounts sought

Reasoning

The Respondent argued the Claim was defective for not stating exact sums and for lack of verifying affidavit authority. The Court held the Industrial Court (Procedure) Rules, 2010 prescribed the nature and content of Claims, so Order 4 rule 2 of the Civil Procedure Rules did not apply, and the Union had annexed a schedule of amounts with further computations filed after leave.

p. 4
05

Pay slips

Holding

Respondent ordered to issue pay slips from October 2013

Reasoning

An employer is under a statutory duty (sections 20 and 21 of the Employment Act) to issue pay slips. The Respondent argued the Grievants refused to collect them until all wages were paid, but the Court distinguished between pay slips and actual payment, directing that pay slips be issued and collected from October 2013.

p. 4

Legal principles established

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  • Payment of wages when due is an essential term of the employment contract and failure to pay when due is a breach of a fundamental or essential term
  • An employer is under a statutory obligation to issue an employee with a pay slip
  • An employer who assigns duties to an employee without the requisite qualifications cannot later resist paying wages for that designation - it cannot blow hot and cold
  • Accepting pay slips by itself is not an indication that wages have been paid

Court orders

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  1. 1.Respondent ordered to pay each of the ten Grievants the tabulated sums covering salary arrears, unpaid salaries up to July 2014, long service awards and uniform allowance (totals ranging from Kshs 190,717/- for Kahindi Karisa K to Kshs 802,814/- for Japheth Hanga)
  2. 2.Salary advances paid to the Grievants and acknowledged after commencement of the Claim and not factored in the awards to be deducted
  3. 3.Respondent to issue pay slips to the Grievants as required by law from October 2013
  4. 4.Parties at liberty to apply in case of any arithmetical errors in the figures
  5. 5.Each party to bear its own costs

Authorities

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Legislation

  • Employment Actsection 18
  • Employment Actsections 20 and 21
  • Employment Actsection 28
  • Employment Act, 2007section 18
  • Civil Procedure RulesOrder 4 rule 2
  • Industrial Court (Procedure) Rules, 2010nature and content of Claims
  • Industrial Court Actprincipal objective
Jurisdiction invoked
Industrial Court Act - trade dispute reported to Cabinet Secretary for Labour and referred after failed conciliation

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, "Kenya Union of Domestic, Hotels, Educational Institutions & Hospital Workers v Young Women Christian Association (Cause 114 of 2014) [2014] KEELRC 1243 (KLR)", Case Analysis (2014). Memorandum of Claim filed 26 March 2014 (Cause, Industrial Court, Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1243/eng@2014-09-12

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