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ELRCDismissedNot stated in the judgment (Industrial Court cause filed 23rd October 2012)· [2015] KEELRC 787 (KLR)

Rama Krishnarao v Saj Ceramics Ltd [2015] KEELRC 787 (KLR)

Industrial Court (Employment and Labour Relations Court)
7 July 2015
2,745 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court dismissed a former employee's Kshs 6 million claim, ruling he resigned voluntarily and was already paid everything he was owed.

What this practically means

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Executive summary

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The claimant, Rama Krishnarao, sued Saj Ceramics Ltd seeking declarations that his termination on account of poor performance violated Article 41(1) of the Constitution and sections 41 and 45 of the Employment Act, together with compensation totalling Kshs 6,102,986, comprising notice pay, severance pay for fourteen years, twelve months' compensation, 51 unpaid leave days, eleven air tickets to India, and interest at 20% per annum. He alleged that after returning from leave to India in February 2008 he was told his employment had ended for poor performance, and that he was tricked into tendering a resignation. The respondent maintained that the claimant resigned voluntarily citing personal problems, was paid his full terminal dues of Kshs 314,205 the same day, and signed a discharge certificate. The court collapsed the parties' issues into four heads. It held that although the pre-industrial court conciliation procedure was flawed, a conciliator's recommendation under the Trade Disputes Act binds no party unless accepted by both, so the suit was properly before the court. On the merits, the court found the claimant had given no particulars of any trickery or deception, and that his immediate pursuit of dues, same-day payment and signed discharge were inconsistent with unfair termination or trickery. He was found to have resigned voluntarily and to have been paid more than the repealed Employment Act (1976) required. Severance pay applies only on redundancy; twelve months' compensation was introduced only by the Employment Act 2007, not in force in 2008; and the leave and air ticket claims lacked evidential support. The entire claim was dismissed with no orders for costs.

Key legal issues

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01

Effect of a flawed pre-court conciliation procedure on the suit

Holding

The flawed pre-court procedure did not defeat the suit; the conciliator's rejected recommendation was not binding and the matter was properly before the court.

Reasoning

The court acknowledged the respondent's point that the pre-industrial court procedure was flawed, but held that under the repealed Trade Disputes Act a conciliator's recommendation binds no party unless accepted by both. Since the respondent rejected the labour officer's recommendation, it was not binding, and the dispute was properly before the court for determination.

p. 3
02

Whether the claimant was unfairly terminated or tricked into resigning

Holding

The claimant resigned voluntarily; no unfair termination, trickery or deception was proved.

Reasoning

The claimant did not deny resigning but alleged the resignation was induced by deceit. He gave no particulars of who tricked him, how, or when. The resignation letter cited personal problems, and the claimant immediately sought his dues and service letter, was paid the same day, and signed a discharge. His conduct was inconsistent with that of a person unfairly terminated or tricked into resigning.

p. 6
03

Whether the claimant was paid his entire terminal benefits

Holding

The claimant was paid his full terminal dues, indeed more than the law at the time required, and discharged the respondent.

Reasoning

Since the employment ended by resignation, the applicable Employment Act (1976) required payment of salary to date of termination, which was paid for February, March and April 2008. The claimant signed a certificate of discharge confirming no further claims. The repealed Act did not provide pay in lieu of notice for an employee who resigned and did not serve notice, so the claimant received more than he was entitled to.

p. 6
04

Entitlement to the specific heads of relief claimed

Holding

None of the claimed heads - notice pay, severance, twelve months' compensation, leave days or air tickets - was made out.

Reasoning

Notice pay had been paid and acknowledged; severance applies only on redundancy and the claimant was not declared redundant; twelve months' compensation was introduced by the Employment Act 2007 which was not in force; the leave claim and the consequential air tickets claim were unsupported by evidence, and the contract provided only one air ticket per two-year contract.

p. 7

Legal principles established

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  • A conciliator's recommendation under the Trade Disputes Act is not binding on any party unless accepted by both parties; rejection by one party leaves the dispute properly before the court.
  • An employee alleging that a resignation was procured by trickery or deception must plead and prove the particulars of that trickery and deception.
  • Severance pay is only payable in the event of redundancy, not on resignation.
  • Twelve months' compensation for unfair termination was introduced by the Employment Act 2007 and does not apply to terminations occurring before its commencement.
  • A signed discharge certificate acknowledging full terminal dues and absence of further claims discharges the employer from further liability.

Court orders

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  1. 1.The entire claim is dismissed
  2. 2.No orders for costs (each party to bear own costs)

Authorities

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Legislation

  • Constitution of KenyaArticle 41(1)
  • Employment ActSections 41 and 45 (Employment Act 2007)
  • Employment Act (1976) (repealed)General provisions on payment on termination
  • Trade Disputes Act (Cap 234) (repealed)Conciliation recommendations
  • Labour Relations Act2007
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Industrial Court under the Employment Act and applicable labour legislation (no specific constitutional article cited in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (4)

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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, "Rama Krishnarao v Saj Ceramics Ltd [2015] KEELRC 787 (KLR)", Case Analysis (2015). Not stated in the judgment (Industrial Court cause filed 23rd October 2012). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/787/eng@2015-07-07

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