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ELRCDismissedCause No 568 of 2017· [2018] KEELRC 861 (KLR)

Charo William & 15 others v Ready Consultancy Limited [2018] KEELRC 861 (KLR)

Employment and Labour Relations Court
26 October 2018
1,073 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

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Kenyan workers who refuse a lawful employer transfer and sign full settlement vouchers cannot later claim unfair termination or extra dues.

What this practically means

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Executive summary

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The Claimants, employed as Stackers by the Respondent, an outsourcing company, and assigned to Mombasa Maize Millers between 2007 and 2016, claimed notice pay, annual leave pay, house allowance, service pay, off days, compensation for unlawful termination and certificates of service. They alleged they were transferred to Nairobi on immediate effect without sufficient notice or adequate facilitation, paid terminal dues of about Kshs. 21,200 each, and dismissed. The Respondent admitted the employment and the transfer but contended the transfer was effected under a Memorandum of Agreement brokered by the Labour Office dated 28th January 2016, following a dispute with Mombasa Maize Millers, with one week's notice, transport of Kshs. 1,000 and subsistence paid; the Claimants declined to relocate and absconded. The Court found the transfer complied with the negotiated Agreement and was an employer's managerial prerogative, applied in previous decisions of this Court, exercised without ill motive. The Court held the Respondent did not terminate the contracts: the Claimants chose not to relocate, accepted terminal benefits and signed discharge vouchers in full and final settlement, without showing that any contractual or statutory dues were omitted. Colleagues who accepted the transfer remained employed. The Claim was found to have no merit and was dismissed with no order on the costs, delivered at Mombasa on 26th October 2018 by James Rika, Judge.

Key legal issues

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01

Whether the Respondent terminated the Claimants' employment

Holding

The Respondent did not terminate the contracts; the Claimants chose not to relocate, took terminal benefits and left

Reasoning

The parties had a Memorandum of Agreement brokered by the Labour Office permitting transfer on at least one week's notice. Transfer letters gave 7 days, complying with the Agreement. Transport and subsistence were paid. The Claimants declined to move, accepted terminal dues and signed discharge vouchers, so separation was at their own instance.

p. 2
02

Lawfulness of the transfer to Nairobi

Holding

The transfer was a legitimate managerial prerogative exercised under a negotiated Agreement with no ill motive

Reasoning

Transfer is an employer's managerial prerogative challengeable only on limited grounds such as ill motive. Here transfer followed a Labour Office-brokered Memorandum of Agreement, with notice and facilitation paid; colleagues who accepted the transfer remained in employment. The Claimants' remedy, if dissatisfied, was to renegotiate, not to abscond.

p. 3
03

Effect of the discharge vouchers

Holding

The discharge vouchers constituted full and final settlement and bar the present claims

Reasoning

The Claimants signed discharge vouchers absolving the Respondent from present and future liability. They did not demand further dues at execution nor prove before the Court that any contractual or statutory dues were omitted from the settlement sums.

p. 3

Legal principles established

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  • Transfer of an employee is an employer's managerial prerogative, challengeable only on limited grounds such as ill motive
  • An employee's refusal to move to a new station within the same enterprise amounts to insubordination
  • Execution of a discharge voucher in full and final settlement bars subsequent claims unless omitted contractual or statutory dues are shown

Court orders

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  1. 1.The Claim is dismissed with no order on the costs

Authorities

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Cases cited (3)

  • Andrew Majan Chegero v Ready Consultancy Limited
    E&LRC Cause Number 525 of 2015
  • Arfaan Kasu v Express Limited Travel Express Group Limited
    E&LRC Cause Number 299 of 2015
  • Hesbon Wanjohi Kahiko v Twiga Chemicals Limited
    Cause Number 1241 of 2010
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims (statement of claim for terminal dues and unlawful termination)

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, "Charo William & 15 others v Ready Consultancy Limited [2018] KEELRC 861 (KLR)", Case Analysis (2018). Cause No 568 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/861/eng@2018-10-26

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