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Case Brief · caselaw.co.ke
ELRCDismissedNot stated in the judgment· [2015] KEELRC 296 (KLR)

Lawrence Echuu v Green Park Water Services Ltd [2015] KEELRC 296 (KLR)

Employment and Labour Relations Court
6 November 2015
646 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court threw out an unfair dismissal claim because the worker had already signed a settlement agreement through conciliation.

What this practically means

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Executive summary

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The Claimant was summarily dismissed by Green Park Water Services Ltd on 20 June 2013. He complained to the County Labour Officer, Naivasha, and conciliation was conducted before A.M. Karimi, with representation by the Kenya Union of Commercial, Food and Allied Workers. On 14 November 2013 a Certificate of Agreement was signed by the parties under which the summary dismissal was reduced to normal termination and the Claimant was to receive notice pay and June 2013 wages. The Respondent deposited Kshs 20,675/- with the County Labour Office on 19 November 2013, and the Claimant collected Kshs 7,447/- on 18 December 2013. Notwithstanding the settlement, the Claimant filed a Memorandum of Claim on 3 July 2014 seeking a declaration of unfair termination plus house allowance, overtime, notice pay and compensation. The Court declined to determine the fairness of the dismissal, holding instead that the complaint had been mutually resolved at conciliation. Although the labour statutes do not expressly bar proceedings after conciliation settlement, the Court held it is against public policy to litigate a compromised dispute on the same facts. The claims for house allowance, severance pay and overtime failed for want of contractual or statutory basis and quantum; pay slips showed house allowance was paid, and service pay was unavailable to a contributing NSSF member under section 35(5) of the Employment Act, 2007. The Memorandum of Claim was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether a claim may be maintained after settlement at conciliation

Holding

No - commencing proceedings on the same facts after a compromise is against public policy

Reasoning

The parties had complained to the local Labour Office, a conciliator was appointed, and an agreement was reached reducing the summary dismissal to normal termination with payment of notice pay and June wages. The Respondent deposited the agreed sum and the Claimant collected part of it. Although the labour statutes do not expressly bar such proceedings, the Court held that litigating a settled dispute is against public policy.

p. 2
02

Whether house allowance, severance pay and overtime were payable

Holding

No - no contractual or statutory basis was laid and pay slips showed house allowance was paid

Reasoning

The Claimant did not lay a contractual or statutory foundation for house allowance, severance pay or overtime, nor give a rough quantum. Severance pay applies in redundancy. If he meant service pay under section 35(5) of the Employment Act, 2007, he was disentitled as a contributing member of the National Social Security Fund.

p. 2

Legal principles established

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  • It is contrary to public policy for a party to an employment dispute settled or compromised at conciliation to commence legal proceedings on the same facts
  • Service pay under section 35(5) of the Employment Act, 2007 is not payable to a contributing member of the National Social Security Fund

Court orders

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  1. 1.Dismissal of the Memorandum of Claim filed in Court on 3 July 2014
  2. 2.Each party to bear its own costs

Authorities

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Legislation

  • Employment Act, 2007section 35(5)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; not expressly cited as source of jurisdiction in the judgment)

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, "Lawrence Echuu v Green Park Water Services Ltd [2015] KEELRC 296 (KLR)", Case Analysis (2015). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/296/eng@2015-11-06

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