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ELRCDismissedCause No. 2123 of 2012· [2015] KEELRC 238 (KLR)

Eddie Mutegi Njora v Mega Microfinance Co. Ltd [2015] KEELRC 238 (KLR)

Employment and Labour Relations Court of Kenya
22 October 2015
4,478 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan employment claim for leave pay, service pay and other terminal dues failed because the employee could not prove entitlements beyond his written contract.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as an Administrative Officer on a fixed-term contract from 1 August 2008 to 31 July 2011, claimed terminal dues withheld upon the contract's expiry: accrued leave of 78 days, three years' service pay, unpaid medical cover, compensation for use of a personal laptop, housing allowance, and compensation for the late issue of a backdated written contract. He also alleged violation of his employment rights. The Respondent admitted the employment but denied owing dues, asserting the leave balance had been paid in cash, the salary was all inclusive, medical expenses were reimbursable on submission, laptop use was against company policy, and that the Claimant, as the officer responsible for statutory deductions, had failed to remit his own NSSF dues which the Respondent later settled with penalties and a waiver. The court found no violation of rights in the late issue of the contract since the Claimant acted with knowledge of its terms. Leave was refused because the employer had lawfully directed the Claimant to take his accrued leave and he could not claim for days spent working for a third party, MIWS. Service pay was refused as NSSF dues had been updated during the pendency of the suit, and awarding it would amount to double payment. The medical, laptop and housing claims all failed for want of contractual or evidentiary basis. The court held that the duty to deduct and remit statutory dues lies on the employer regardless of the employee's position. The claim was dismissed in its entirety with each party bearing its own costs.

Key legal issues

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01

Whether non-issue of a written contract until 22nd February 2011 violated the Claimant's employment rights

Holding

No violation; the Claimant acted with knowledge of his contract terms throughout and received the contract five months before expiry

Reasoning

Section 9 of the Employment Act obliges the employer to issue a written contract signifying the employee's consent. The contract produced was not signed by the Claimant, breaching section 9(3). However, the Claimant by his conduct knew his salary, duties and dual role with MIWS, which were only ascertainable from the appointment letter of 26 July 2008. He received the letter on 22 February 2011, five months before the fixed-term contract lapsed, contested nothing, and served until 31 July 2011. No rights violation arose.

p. 5
02

Whether the Claimant was entitled to accrued leave pay of 78 days

Holding

Claim refused; the Respondent lawfully directed the Claimant to take leave and he cannot claim for leave days while working for a third party

Reasoning

The employer directed the Claimant on 21 April and 30 May 2011 to proceed on accrued leave. Although he was permitted to continue serving MIWS from the same office, his employer for leave purposes was the Respondent, which had directed leave. Leave is a legal entitlement to rest that cannot be postponed indefinitely. The Respondent also paid cash for the 22 remaining leave days in computing terminal dues.

p. 6
03

Whether the Claimant was entitled to service pay under section 35(5) of the Employment Act

Holding

Claim refused; NSSF dues were paid and updated by the Respondent during the pendency of the suit, so awarding service pay would be double payment

Reasoning

Section 35(6)(d) excludes employees who are members of the NSSF from service pay. Although the Claimant's own NSSF dues were not remitted, the duty to deduct and remit rests on the employer regardless of the employee's position. The Respondent later paid all dues and penalties with a waiver. As the court became aware of the remittance before judgment, awarding service pay would amount to a gross error and double payment.

p. 7
04

Whether the Claimant was entitled to unpaid medical cover

Holding

Claim refused for lack of evidence of illness or unreimbursed medical bills

Reasoning

Section 34 of the Employment Act obliges the employer to provide sufficient and proper medicine during illness and, where possible, medical attendance during serious illness. Where no cover exists, the employee must notify the employer of illness, who must then address it. The Claimant adduced no evidence of sickness, of notifying the Respondent, or of incurring medical bills that the Respondent failed to reimburse.

p. 7
05

Whether the Claimant was entitled to compensation for use of his personal laptop

Holding

Claim refused; the Claimant did not show the Respondent failed to provide tools and quantification was unjustified

Reasoning

Personal tools may be used where the employer fails to provide them and the employee must use their own to perform their work. The Claimant, as Administrative Officer, did not demonstrate that he required a laptop and that the Respondent failed to provide one. The Respondent's policy prohibited personal computers given the nature of its financial business, and the claimed Kshs.21,000 was not justified.

p. 8
06

Whether the Claimant was entitled to housing allowance

Holding

Claim refused; the gross salary was all inclusive and the contract provided no housing benefit

Reasoning

The written contract set the gross salary and benefits; housing or an allowance in lieu was not among them. Courts will not read in rights outside the agreed contract save in exceptional circumstances, and the Claimant did not allege his pay fell below the statutory minimum for his position so as to justify implying a housing benefit.

p. 5

Legal principles established

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  • The duty to deduct and remit statutory dues rests on the employer regardless of the employee's position
  • Leave is a legal entitlement that should be taken when due and an employer may lawfully direct its taking
  • Written contracts of employment are binding and courts will not read in benefits outside what was agreed save in exceptional circumstances

Court orders

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  1. 1.The claim is dismissed in its entirety
  2. 2.No costs ordered; each party shall meet their own costs

Authorities

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Legislation

  • Employment Actsection 9(2) and 9(3)
  • Employment Actsection 35(1)(c), 35(5) and 35(6)
  • Employment Actsection 34(1),(2),(3)

Cases cited (3)

  • Mary Rhobi versus Annah Bhamania
    [2014] eKLR
  • John Willice Opot versus Starehe Boys Centre
    [2013] eKLR
  • Linet Akasa Shikoli versus Lilian Otundo
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under employment and labour relations (Employment Act dispute)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Eddie Mutegi Njora v Mega Microfinance Co. Ltd [2015] KEELRC 238 (KLR)", Case Analysis (2015). Cause No. 2123 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/238/eng@2015-10-22

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