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ELRCOtherCause No. 518 of 2014· [2015] KEELRC 19 (KLR)

Maurice Otunga Obunga v Transtrailers Limited [2015] KEELRC 19 (KLR)

Industrial Court of Kenya
3 December 2015
JRJames Rika
259 words in judgment
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The bottom line

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What this practically means

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Executive summary

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This was an employment dispute before the Industrial Court at Mombasa in which Maurice Otunga Obunga, the Claimant, sued Transtrailers Limited, the Respondent, over unfair and unlawful termination of employment. The Claimant filed his Statement of Claim on 22nd October 2014 and the Respondent filed its Statement of Response on 9th December 2014. On 22nd May 2015 the parties recorded a consent, but on 3rd December 2015 they returned to Court and informed it that they had settled the dispute on fresh terms, under which the earlier consent was set aside and judgment was to be entered for the Claimant. The settlement provided for days worked in August 2014 (Kshs. 17,184.60), four months' compensation (Kshs. 76,376), accrued leave (Kshs. 19,094) and overtime pay (Kshs. 1,869), totalling Kshs. 114,523.60, less deductions for NSSF, NHIF, PAYE and a Sacco loan, giving a net sum of Kshs. 66,678.60, plus costs of Kshs. 50,000, for a total payable of Kshs. 116,678.60 within 30 days, in default of which execution would issue. Acting under Rule 27(1)(a) of the Industrial Court (Procedure) Rules 2010, Rika J held that the proposed terms of settlement were fair, adequate, regular and made in accordance with the law, and ordered that award be entered in terms of the parties' proposal. The award was dated and delivered at Mombasa on 3rd December 2015.

Key legal issues

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01

Whether the consent recorded on 22.5.2015 should be set aside and judgment entered on the parties' revised settlement terms

Holding

The earlier consent was set aside and judgment entered on the revised settlement terms, the Court being satisfied the proposed terms of settlement were fair, adequate, regular and lawful

Reasoning

The parties informed the Court on 3rd December 2015 that they had settled the dispute on revised terms, replacing the earlier consent of 22.5.2015. The terms set out a breakdown of payments for days worked, compensation, accrued leave and overtime, subject to statutory deductions, plus costs. Exercising its power under Rule 27(1)(a) of the Industrial Court (Procedure) Rules 2010, the Court adopted the settlement and entered award accordingly.

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Legal principles established

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  • A court may adopt by consent parties' proposed terms of settlement where it is satisfied they are fair, adequate, regular and made in accordance with the law

Court orders

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  1. 1.The parties' Consent entered on 22.5.2015 is set aside
  2. 2.Judgment entered for the Claimant in terms of the parties' proposed settlement: days worked in August 2014 (Kshs. 17,184.60), 4 months' compensation (Kshs. 76,376), accrued leave (Kshs. 19,094) and overtime pay (Kshs. 1,869), total Kshs. 114,523.60
  3. 3.Statutory and other deductions (NSSF Kshs. 200, NHIF Kshs. 1,700, PAYE Kshs. 28,229, Sacco Loan Kshs. 17,716) applied, yielding a net sum of Kshs. 66,678.60
  4. 4.Costs of Kshs. 50,000 awarded to the Claimant
  5. 5.Total of Kshs. 116,678.60 to be paid within 30 days, in default execution to issue

Authorities

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Legislation

  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010, Rule 27(1)(a)

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, "Maurice Otunga Obunga v Transtrailers Limited [2015] KEELRC 19 (KLR)", Case Analysis (2015). Cause No. 518 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/19/eng@2015-12-03

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