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ELRCPartially AllowedCause No. 1577 of 2014· [2018] KEELRC 747 (KLR)

Susan Waitherero Rukungu v Boniface Kamau & another [2018] KEELRC 747 (KLR)

Employment and Labour Relations Court of Kenya
31 October 2018
2,524 words in judgment
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The bottom line

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A Kenyan court ruled an employee who resigns must prove working conditions were intolerable to win constructive dismissal, and she was held to her pleadings.

What this practically means

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Executive summary

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The Claimant, a former waitress and later cashier with the Respondents trading as Highland Foods, claimed terminal dues for her employment from 10th February 2010 to 9th December 2013, including salary for December 2013, leave pay, leave allowance, house allowance, service pay, overtime, public holiday pay, unpaid NSSF and NHIF remittances, a certificate of service, costs and interest. She alleged mistreatment and overwork forced her to leave. The Respondents denied the claims, asserting she absconded without notice, that her wages were consolidated, and that service pay was unavailable to NSSF members. In submissions the Claimant for the first time framed her case as constructive dismissal, relying on authorities including Alice Mbithe Mwanzia v Xpress It Courier. The court framed two issues: whether the Claimant was unfairly terminated or resigned, and her entitlement to remedies. It held that in constructive dismissal the burden of proof rests on the employee, and the Claimant produced no rejected leave applications or records of hours worked to prove intolerable conditions. Unlike Mwanzia, there was no tangible evidence of unilateral variation of the contract. The court further held the Claimant to her pleadings, finding constructive dismissal was never pleaded. It concluded she resigned voluntarily and was entitled only to terminal dues: unpaid NSSF and NHIF remittances and house allowance, less one month's salary in lieu of notice. Service pay was barred by her NSSF membership and overtime and public holiday claims failed for lack of evidence. The court awarded a total of Kshs. 74,400 with costs and interest from the date of judgment. The claim therefore succeeded only in part.

Key legal issues

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01

Whether the Claimant was constructively dismissed or resigned voluntarily

Holding

The Claimant was not constructively dismissed; she resigned on her own volition.

Reasoning

The court held that in constructive dismissal the burden shifts to the employee to prove the working environment was intolerable. The Claimant alleged denial of leave and overwork but produced no rejected leave applications or employment records of hours worked, and did not request the Respondent to produce documents. Unlike Alice Mbithe Mwanzia v Xpress IT Courier, there was no tangible evidence of unilateral variation of contractual terms. Further, constructive dismissal was not pleaded.

p. 4
02

Whether the Claimant is entitled to the terminal dues claimed

Holding

Partially - the Claimant is entitled to unpaid NSSF and NHIF remittances and house allowance, less one month's notice for resigning without notice; service pay, overtime, leave allowance and public holiday claims fail.

Reasoning

Having found voluntary resignation, the court limited remedies to terminal dues. Unpaid statutory deductions (NSSF at Kshs. 200 and NHIF at Kshs. 400 monthly) were computed as payable. House allowance at 15% of salary was awarded. Service pay was barred by NSSF membership under Section 35(6) of the Employment Act, and prayers for overtime and public holidays failed for want of evidence.

p. 4
03

Whether a claim raised for the first time in submissions (constructive dismissal) is available to a claimant

Holding

No - parties are bound by their pleadings and cannot expand their case through submissions.

Reasoning

The Respondent objected that constructive dismissal was raised in submissions as an afterthought. The court agreed, holding that since the Memorandum of Claim did not plead constructive dismissal, the Claimant could not make extensive submissions on it. This is an application of the principle that pleadings define the scope of the case.

p. 4

Legal principles established

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  • In constructive dismissal claims the burden of proof lies on the employee to show the working conditions were intolerable
  • A party is bound by their pleadings and cannot introduce a new cause of action through submissions
  • An employee who resigns voluntarily is entitled only to terminal dues, and resignation without notice allows deduction of one month's salary in lieu of notice

Court orders

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  1. 1.Claimant awarded Kshs. 3,600.00 in unpaid NSSF and Kshs. 7,200.00 in unpaid NHIF remittances
  2. 2.Claimant awarded house allowance of Kshs. 75,600.00 (15% of salary computed over 4.2 months)
  3. 3.Total award of Kshs. 74,400.00 after deducting one month's salary in lieu of notice (Kshs. 12,000) for resignation without notice
  4. 4.Respondents to pay costs of the suit plus interest at court rates from the date of judgment

Authorities

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Legislation

  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 31(2)(a)
  • Employment Act, 2007Section 35(6)
  • Employment Act, 2007Section 28(4)
  • Employment Act, 2007Section 36
  • Evidence Act, Cap 80Sections 107 and 108
  • Retirement Benefits Actnot specified

Cases cited (7)

  • Maria Kagai Ligaga vs Coca Cola East and Central Africa Limited
    Cause No. 611 (N) of 2009
  • Marete vs Attorney General
    [1987] KLR 690
  • Max Masoud Roshankar & Another vs Sky Aero Limited
    [2015] eKLR
  • Elijah Kipkoros Tonui v Ngara Opticians T/A Bright Eyes Limited
    [2014] EKLR
  • Alice Mbithe Mwanzia versus Xpress It Courier
    [2016] eKLR
  • Kenneth Kilimani Mburu & Another vs Kibe Muigai Holdings Limited
    (2014) eKLR
  • Collins Otieno Owino Vs Rift Valley Agencies Ltd
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Cause No. 1577 of 2014, Memorandum of Claim for terminal dues)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Susan Waitherero Rukungu v Boniface Kamau & another [2018] KEELRC 747 (KLR)", Case Analysis (2018). Cause No. 1577 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/747/eng@2018-10-31

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