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ELRCPartially AllowedNot stated in judgment· [2018] KEELRC 1526 (KLR)

Lazarus Sindani & 14 others v Jiangxi Zhongmei Engineering Construction Company Limited [2018] KEELRC 1526 (KLR)

Employment and Labour Relations Court
5 July 2018
2,103 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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Fifteen claimants, former or current employees of a contractor rehabilitating the Kitale-Webuye Road between 2012 and 2014, sued for underpayments, lost hours, house allowance, NSSF/NHIF/PAYE refunds and annual leave, totalling Kshs.9,932,177 plus costs and interest. The respondent did not file a response. The court referred the matter to the County Labour Officer Kitale, whose report of 21st February 2017 found the underpayment claims were calculated on an hourly rate not provided for in the Building and Construction Industry Wages Order (which provides daily rates only), that employees who worked extra hours were paid overtime, and that NSSF and NHIF are statutory deductions not refundable by the employer. In written submissions, the claimants abandoned the house allowance, NSSF, NHIF and PAYE prayers and revised their claims. The court framed a single issue: whether the claimants were entitled to underpayments, lost hours/overtime and annual leave, with a further prayer for pay in lieu of notice by the 3rd claimant. Comparing the rates paid against the Regulation of Wages (General) Order and the Building and Construction Industry Wages Order 2012, the court found no proof of underpayment of basic pay. Each claimant in service was held entitled to 21 days annual leave per year under Section 28 of the Employment Act, and the respondent was directed to work out and pay leave due in lieu up to the date of filing suit on 21st April 2015. The 3rd claimant's claim for pay in lieu of notice was dismissed for lack of evidence on how he left employment. Judgment was signed at Nairobi on 5th June 2018 by Maureen Onyango J and delivered at Kisumu on 5th July 2018 by Mathews Nderi Nduma J.

Key legal issues

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01

Whether the claimants proved underpayment of basic wages

Holding

No underpayment of basic pay was proved; the rates paid were consistent with the statutory minimums

Reasoning

The court compared the actual rates paid to the claimants against the rates in the Regulation of Wages (General) Order and the Building and Construction Industry Wages Order 2012. The Labour Officer had also found the underpayment claims were calculated on an hourly rate not provided for in the Wages Order, which provides for daily rates only. The court confirmed employees still in employment were not underpaid basic salary.

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02

Whether the claimants were entitled to annual leave

Holding

Claimants in service are entitled to 21 days leave per year under Section 28 of the Employment Act, to be worked out and paid in lieu up to the date of filing suit

Reasoning

Counsel submitted the claimants were never allowed to go on leave. The court applied Section 28 of the Employment Act, which entitles each grievant in service to 21 days leave per year, and directed the respondent to work out and pay leave due in lieu up to the date of filing suit on 21st April 2015.

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03

Whether the 3rd claimant was entitled to pay in lieu of notice

Holding

The claim for pay in lieu of notice was dismissed for lack of evidence on how he left employment

Reasoning

The 3rd claimant, Christopher Karanja Ngugi, stated he was dismissed on 7th November 2014 after workers went on strike, but no evidence was adduced on how he left employment. Without proof of the circumstances of separation, the claim for one month's pay in lieu of notice could not succeed.

p. 10

Legal principles established

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  • Each grievant in service is entitled to 21 days annual leave per year under Section 28 of the Employment Act
  • Statutory deductions such as NSSF and NHIF are not refundable by the employer; claimants should approach the organisations directly if deductions were not remitted

Court orders

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  1. 1.The respondent is directed to work out and pay all the claimants their annual leave due in lieu of leave up to the date of filing suit on 21st April 2015
  2. 2.The claim for pay in lieu of notice by the 3rd claimant, Christopher Karanja Ngugi, is dismissed

Authorities

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Legislation

  • Employment ActSection 28
  • Building and Construction Industry Wages OrderRates of pay for labourers, ungraded artisans, junior and senior headmen
  • Labour Institutions Act (Building and Construction Industry) (Wages) Order 2012Rates of pay gazetted 1st February 2013
  • Regulation of Wages (General) OrderRates of pay for general labourers and ungraded artisans

Cases cited (3)

  • Evans Katiezo Aligulah -v- Eldomatt Wholesale and Supermarket Limited
    [2016] eKLR
  • John Rioba Maugo -v- Riley Falcon Security Services Limited
    [2016] eKLR
  • Kenya Guards and Allied Workers Union -v- Lavington Security Limited
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims (no specific constitutional provision cited)

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, "Lazarus Sindani & 14 others v Jiangxi Zhongmei Engineering Construction Company Limited [2018] KEELRC 1526 (KLR)", Case Analysis (2018). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1526/eng@2018-07-05

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