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ELRCPartially AllowedCause No 2132 of 2011· [2016] KEELRC 1005 (KLR)

Joseph Maina Gichuhi v Barclays Bank (K) Ltd [2016] KEELRC 1005 (KLR)

Employment and Labour Relations Court
17 June 2016
MNMathews Nderi Nduma
602 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 judgment on quantum follows an earlier judgment delivered on 10th June 2015 in this employment cause, pursuant to which the respondent, Barclays Bank (K) Ltd, filed a tabulation of the court's award in respect of various claimants: Lucy Wangui Mwaniki, Angeline Wambui Muchiri, Joseph Maina Gichuhi and Shadrack Adem, covering payment in lieu of three months' notice and severance pay, less tax. The claimant filed submissions on 27th January 2016 contesting the figures. For Lucy Wangui Mwaniki, the claimant argued the respondent failed to compute severance pay for two months and ten days of service from 14th March 1994; the court found the additional payment of Kshs.34,305.00 justified, making a total of Kshs.2,001,953.37 less tax. For Angeline Wambui Muchiri, the claimant contended the correct basic pay was Kshs.112,501.00 and that nine months and ten days of service were omitted; the court adopted the claimant's tabulation, with a net payment less tax of Kshs.2,050,143.00. For Joseph Maina Gichuhi, the court varied the tabulation to include a further Kshs.148,347.54 in severance pay for six months and thirteen days omitted, less tax, totalling Kshs.4,208,600.54, but disallowed a loan discount claim not canvassed at the hearing. For Shadrack Opon Adem, the court awarded eight months' prorated severance of Kshs.58,500.00, bringing the net total to Kshs.2,117,115. No costs order is recorded.

Key legal issues

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01

Prorated severance pay for incomplete years of service

Holding

The respondent's tabulations that omitted partial years of service were varied to include the prorated amounts for each claimant

Reasoning

The court compared the employment dates to termination date (23rd May 2005 for most claimants, 4th April 2005 for the first claimant) against the respondent's tabulation and found shortfalls in the periods counted. It accepted the claimant's computations of additional severance for the uncounted months and days, adjusting the totals for each claimant accordingly, less tax.

p. 3
02

Claims not canvassed at hearing

Holding

A further claim on loan discount raised only at the tabulation stage was disallowed

Reasoning

The claimant sought an additional sum on account of loan discount for the first claimant. The court noted this issue was not raised or canvassed during the substantive hearing of the cause and therefore declined to entertain it at the quantum/tabulation stage, disallowing that head of claim.

p. 2

Legal principles established

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  • Severance pay must be computed to include prorated severance pay for incomplete years of service

Court orders

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  1. 1.Additional payment of Kshs.34,305.00 to Lucy Wangui Mwaniki, making a total of Kshs.2,001,953.37 less respective tax deduction
  2. 2.Adoption of the claimant's tabulation for Angeline Wambui Muchiri with net payment less tax of Kshs.2,050,143.00 instead of Kshs.1,823,359.00
  3. 3.Variation of the respondent's tabulation to include a further payment of Kshs.148,347.54 severance pay less requisite tax to the first claimant, total payment Kshs.4,208,600.54
  4. 4.Award of prorated severance pay to Shadrack Opon Adem bringing the net total award of severance to Kshs.2,117,115
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over a former employment cause

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, "Joseph Maina Gichuhi v Barclays Bank (K) Ltd [2016] KEELRC 1005 (KLR)", Case Analysis (2016). Cause No 2132 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1005/eng@2016-06-17

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