Eddie Mutegi Njora v Mega Microfinance Co. Ltd [2015] KEELRC 238 (KLR)
The bottom line
#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
#Executive summary
#Key legal issues
#Whether non-issue of a written contract until 22nd February 2011 violated the Claimant's employment rights
No violation; the Claimant acted with knowledge of his contract terms throughout and received the contract five months before expiry
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.
Whether the Claimant was entitled to accrued leave pay of 78 days
Claim refused; the Respondent lawfully directed the Claimant to take leave and he cannot claim for leave days while working for a third party
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.
Whether the Claimant was entitled to service pay under section 35(5) of the Employment Act
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
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.
Whether the Claimant was entitled to unpaid medical cover
Claim refused for lack of evidence of illness or unreimbursed medical bills
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.
Whether the Claimant was entitled to compensation for use of his personal laptop
Claim refused; the Claimant did not show the Respondent failed to provide tools and quantification was unjustified
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.
Whether the Claimant was entitled to housing allowance
Claim refused; the gross salary was all inclusive and the contract provided no housing benefit
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.
Legal principles established
#- 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
#- 1.The claim is dismissed in its entirety
- 2.No costs ordered; each party shall meet their own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under employment and labour relations (Employment Act dispute)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (3)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Shah v Alloy Castings Limited (Cause E019 of 2023) [2024] KEELRC 2114 (KLR)[2024] KEELRC 2114 (KLR)26 Jul 2024
- Wanjai v Mediamax Network Limited (Cause E607 of 2022) [2024] KEELRC 1085 (KLR)[2024] KEELRC 1085 (KLR)14 Mar 2024applied
- Kabusu t/a Oloita Butchery v Ndulu & another (Employment and Labour Relations Appeal E166 of 2022) [2023] KEELRC 2428 (KLR)[2023] KEELRC 2428 (KLR)6 Oct 2023
Cite this brief
#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.