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ELRCPartially AllowedCause No 215 of 2014· [2018] KEELRC 633 (KLR)

Joseph Mungai Keriko v Kirinyaga University College [2018] KEELRC 633 (KLR)

Employment and Labour Relations Court
16 November 2018
4,023 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A voluntary resignation deal ends disciplinary action and limits both sides, but the employee still keeps earned dues.

What this practically means

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Executive summary

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The claimant, appointed Principal of Kirinyaga University College on a five-year term effective 27.11.2012, was suspended on 19.03.2013 over alleged irregular recruitment of staff, irregular allowances, unbudgeted expenditure and failure to follow Council instructions. An Adhoc Committee investigated and found the allegations established, recommending dismissal for gross misconduct. Council adopted the recommendation, but at a meeting on 02.05.2013 the claimant requested to resign instead and tendered a letter of resignation, which the Council Chairperson accepted on the same day. The claimant sued alleging constructive dismissal, seeking reinstatement, alternatively Kshs. 44,175,390.00 for the unexpired contract term, various dues, and expungement of the Committee report. The respondent counterclaimed for approximately Kshs. 4,865,760.39. The Court held that the parties, fully aware of the disciplinary findings, voluntarily agreed to separate through a resignation agreement which bound them, superseded and aborted the disciplinary process, and rendered the termination neither unfair nor unlawful. Reinstatement was time-barred under section 12(3) of the ELRC Act and the office had been abolished upon the College's charter as a full university; payment for the unexpired term was refused as the claimant had resumed work at JKUAT. The claimant was awarded salary to 2 May 2013, gratuity for service, a refund of a transfer, a medical claim and unpaid council allowances. Partial success attended the counterclaim: council meeting allowance, mileage and pension were recoverable, while the tax, staff amounts, notice pay and project payment heads failed. Judgment was entered for the claimant in the net sum of Kshs. 941,113.65, with 50% of his costs.

Key legal issues

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01

Whether the termination was unfair or unlawful notwithstanding the pending disciplinary process

Holding

The termination was not unfair or unlawful because the parties voluntarily agreed to separate through a resignation agreement which bound them

Reasoning

The Court found that both parties, fully aware of the disciplinary findings and allegations against the claimant, evaluated their positions and agreed to separate through the claimant's resignation and its acceptance. Applying the 'soft landing' principle in Malachi Ochieng Pire, parties who opt to separate by resignation agreement surrender their strict positions and are bound by that agreement without further rights or obligations. No factor diminishing the claimant's free will was established.

p. 4
02

Whether reinstatement or pay for unexpired term is available

Holding

Both prayers fail - reinstatement is time barred and the office was abolished; pay for unexpired term is unjustified as the claimant resumed work at JKUAT

Reasoning

Under section 12(3) of the ELRC Act, three years had elapsed since the resignation, barring reinstatement. The respondent had been chartered as a fully fledged university, abolishing the Principal's position, following Professor Elijah Biama. Regarding the unexpired term, the separation agreement contained no provision for such payment, and the claimant had resumed employment as a Professor of Chemistry at JKUAT, following Ronald Sigey and Cyprian Kinoti M'muriungi.

p. 4
03

Whether the claimant is entitled to accrued dues

Holding

Awarded salary to 2 May 2013, gratuity for period served, refund of transfer, medical claim and unpaid council allowances

Reasoning

The claimant was found entitled to salary of Kshs. 252,892.65 up to 2 May 2013, gratuity of Kshs. 454,004.00 for the period served per the contract, refund of Kshs. 389,703.00 transferred to the respondent, Kshs. 54,675.00 medical claim not specifically disputed, and Kshs. 240,000.00 unpaid council allowances supported by a circular. These were specific dues under the contract or undisputed claims, distinct from the refused claims for the unexpired term.

p. 5
04

Whether the counterclaim heads are justified

Holding

Only the Council meeting allowance, mileage claim and pension heads succeed; the tax, staff amounts, notice pay and project payment heads fail

Reasoning

The claimant admitted in evidence the Council meeting allowance was irregularly paid; the mileage claim was found outside the terms of service; and the pension contributions were payable as gratuity not pension. Conversely, the tax claim was unexplained, the amounts paid to recruited staff were not shown recoverable from the claimant alone (other signatories were not disciplined), the resignation agreement superseded notice pay, and project payments were recoverable from contractors.

p. 6

Legal principles established

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  • Where parties to an employment contract agree to separate by a resignation agreement during a disciplinary process, they are bound by the terms of that separation and the disciplinary process is thereby frustrated/aborted; the court will not rewrite the parties' contract of separation.
  • A resignation entered into voluntarily, with no established factor diminishing the employee's free will, is valid and precludes later claims of unfair termination.

Court orders

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  1. 1.Declaration that the separation by way of the resignation agreement superseded the disciplinary proceedings initiated against the claimant, which thereby aborted by parties' own agreement
  2. 2.The respondent to pay the claimant Kshs. 941,113.65 by 31.12.2018 failing which interest at court rates from the date of judgment until full payment
  3. 3.The respondent to pay 50% of the claimant's costs of the suit

Authorities

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Legislation

  • Employment Actsections 41, 43 and 45(2)(c)
  • Employment and Labour Relations Court Act, 2011section 12(3)
  • County Government Act, 2012section 73

Cases cited (4)

  • Malachi Ochieng Pire – Versus- Rift Valley Agencies
    Industrial Cause No. 22 of 2013 at Nakuru [2013]eKLR
  • Professor Elijah Biama –Versus- University of Eldoret & 2 Others
    [2014]eKLR
  • Ronald Sigey –Versus- Chemosit Water and Sanitation Company Limited & Another
    [2018]eKLR
  • Cyprian Kinoti M'muriungi –Versus- County Government of Meru & 2 Others
    [2016]eKLR
Jurisdiction invoked
Employment and Labour Relations Court Act, 2011 (including section 12(3) on reinstatement)

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 Mungai Keriko v Kirinyaga University College [2018] KEELRC 633 (KLR)", Case Analysis (2018). Cause No 215 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/633/eng@2018-11-16

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