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ELRCAllowedCause No 2112 of 2014· [2018] KEELRC 919 (KLR)

Christine Okoko Chacha v Green Belt Movement [2018] KEELRC 919 (KLR)

Employment and Labour Relations Court of Kenya
12 October 2018
1,311 words in judgment
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The bottom line

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A Kenyan employer was ordered to pay over Kshs 636,000 in unpaid redundancy and salary dues simply because it never explained why it withheld them.

What this practically means

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Executive summary

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The claimant, employed by the respondent on 1st November 2012 as Finance and Administration Manager on a three-year contract, was declared redundant by letter dated 6th January 2014, with the respondent offering a redundancy settlement of Kshs 125,000/= payable in instalments, which was never paid. The respondent then re-engaged her as Finance Manager effective 10th February 2014 for approximately two and a half years. She resigned on 14th July 2014 giving three months' notice expiring 13th October 2014. The respondent accepted the resignation but directed her to stay away from work unless specifically requested, on account of alleged disturbing auditor reports, while assuring her she would continue to be paid as normal. Her request for copies of the alleged reports went unfulfilled and her salary from August 2014 onward was not paid. The respondent contended the claimant failed to report to work or surrender documents, causing it financial loss. The court found no evidence of any attempt to recall the claimant to work and noted the respondent gave no reason for non-payment of either the redundancy settlement or her dues. Judgment was entered for the claimant for Kshs 125,000/= redundancy settlement and Kshs 511,700/= being two and a half months' unpaid salary, together with costs of the suit, with both sums subject to taxes and statutory deductions. Judgment delivered at Nairobi on 12th October 2018 by Abuodha Jorum Nelson, Judge.

Key legal issues

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01

Enforceability of agreed redundancy settlement

Holding

The respondent was liable to pay the agreed Kshs 125,000/= redundancy settlement

Reasoning

The respondent by letter dated 6th January 2014 terminated the claimant's three-year contract on grounds of reduced funding and offered a redundancy settlement of Kshs 125,000/= payable in instalments in full and final settlement. The amount was never paid and no reason was given for non-payment, so judgment was entered for it.

p. 2
02

Unpaid salary during notice period after resignation

Holding

The respondent was liable for unpaid salary for August, September and two weeks of October 2014

Reasoning

The claimant's resignation with three months' notice was accepted, and the respondent in its letter of 15th July 2014 told her to stay away from work unless requested but undertook to continue paying her as normal. The respondent never furnished the alleged auditor reports she requested, tendered no evidence she was ever called back to work, and gave no reason for withholding her dues.

p. 2
03

Respondent's allegation that claimant failed to work or surrender documents

Holding

The allegation failed for want of evidence

Reasoning

The respondent's witness admitted she did not have a letter calling the claimant back to work. The court found no evidence was tendered showing any attempt to call the claimant to work which she refused or ignored, and the claimant's uncontradicted testimony was that she was never furnished with the alleged disturbing reports.

p. 2

Legal principles established

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  • Where an employer has agreed to pay a redundancy settlement and offers no reason for non-payment, judgment will be entered for that amount
  • An employer who fails to furnish reasons for withholding an employee's dues upon resignation is liable for the unpaid salary

Court orders

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  1. 1.Judgment entered against the respondent for the agreed redundancy settlement of Kshs 125,000
  2. 2.Judgment entered against the respondent for unpaid salary for August, September and two weeks in October 2014, being two and a half months' salary of Kshs 511,700
  3. 3.Costs of the suit awarded to the claimant
  4. 4.Items (a) and (b) shall be subject to taxes and statutory deductions

Authorities

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Legislation

  • Employment Actredundancy settlement (implied)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (employment dispute over redundancy settlement and unpaid salary)

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, "Christine Okoko Chacha v Green Belt Movement [2018] KEELRC 919 (KLR)", Case Analysis (2018). Cause No 2112 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/919/eng@2018-10-12

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