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ELRCOtherNot stated in the judgment· [2018] KEELRC 597 (KLR)

Anthony Mbaabu Mugwika & 7 others v Ruiri Farmers Co-operative Society Limited [2018] KEELRC 597 (KLR)

Employment and Labour Relations Court
7 November 2018
NMNzioki wa Makau
328 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 confirmed salary arrears are owed but demanded per-claimant proof before ordering payment.

What this practically means

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Executive summary

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This was an undefended Employment and Labour Relations Court claim at Meru by eight current and former staff of a co-operative society - a secretary manager, cashier, driver, two factory managers, a cherry recorder, a turn man and a night watchman - seeking salary arrears from 2001 to 2017 totalling Kshs. 11,528,664.50, plus general damages, interest, costs and any other relief. Nzioki wa Makau J found, on the Claimants' testimony and an Inspection Report of 16th January 2016 by Co-operative Auditors Zachary Njeru and Nicholas Kariuki, that there was proof of sums owed to current and former staff. The audit picture showed the Respondent reeling under massive debt, including Kshs. 28,072,286/- owed in salary arrears as at December 2016, a judgment sum from another labour case concluded in 2017, and a surcharge of Kshs. 1,129,892/- owed to the Commissioner of Co-operatives. Rather than award the sums claimed, the court held that a proper determination required a breakdown of the Kshs. 10,571,510/- tabulated as due to current staff, and ordered the Auditors to avail a breakdown for each of the 8 Claimants within 30 days. The final relief was therefore deferred; no costs order was made in the judgment as extracted.

Key legal issues

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01

Proof of salary arrears in an undefended employment claim

Holding

The court found that the evidence, including an Inspection Report by Co-operative Auditors, established that sums are owed to current and former staff, but declined to compute final awards without a per-claimant breakdown.

Reasoning

The claim proceeded undefended. The Inspection Report of 16th January 2016 by Co-operative Auditors showed the Respondent under massive debt, with Kshs. 28,072,286/- stated to be owed in salary arrears to present and former staff as at December 2016, including amounts due to current staff of Kshs. 10,571,510/-. The court discerned from the report that a sum is owed, but required a breakdown for each of the 8 Claimants before making a final determination.

p. 2

Legal principles established

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  • Where audited figures of salary arrears are not broken down per claimant, the court may direct the auditors to provide a per-claimant breakdown before determining the claim

Court orders

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  1. 1.The Co-operative Auditors to give a breakdown of the sums tabulated as due to the current staff in the sum of Kshs. 10,571,510/-
  2. 2.The Auditors to avail the breakdown for each of the 8 Claimants within 30 days of the date of the order
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over a claim for unpaid salary arrears (specific statutory provision not cited 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, "Anthony Mbaabu Mugwika & 7 others v Ruiri Farmers Co-operative Society Limited [2018] KEELRC 597 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/597/eng@2018-11-07

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