Annie Kiragu v Somak Travel Ltd [2018] KEELRC 1679 (KLR)
The bottom line
#A Kenyan court awarded a redundant employee Kshs.3.45 million because her terminal dues were calculated using a salary lower than what her collective bargaining agreement prescribed.
What this practically means
#Executive summary
#Key legal issues
#Employment position held by the Claimant
The Claimant proved on a balance of probability that she was employed as Customer Relations Officer cum Sales Representative, a position squarely covered by the CBA category paid Kshs.80,000
Although initially appointed as Tour Representative, the job description matched the CBA category including Client Relations Officer and Sales Agent. The defence did not deny the allegation, and the defence witness's own certificate of service described the Claimant as Customer relations officer cum sales representative; correspondence also showed she served as Tour Leader doing sales duties.
The Claimant's rightful salary
The Claimant's rightful salary from July 2010 was Kshs.80,000 per month as prescribed under the CBA for her position
The CBA for July 2012, which remained in force until another was registered, prescribed Kshs.80,000 for Fare man, Transport controller, Client Relations Officer, Safari Consultant, Air Part representative and Sales Agent. The Claimant's job description under the appointment letter placed her squarely in that category.
Whether terminal dues were underpaid and reassessment
Terminal dues were underpaid as they were calculated on a lower salary; the court reassessed notice pay, salary arrears, severance and leave using the Kshs.80,000 CBA salary from 1.7.2010 to 16.4.2014
Having found the rightful salary, the court recalculated: one month salary in lieu of notice at Kshs.80,000; salary arrears of (80,000 - 33,062) x 45.5 months = Kshs.2,135,679; severance at 28 days per completed year (14 years) = Kshs.1,206,153.85; 10 days leave Kshs.30,769.25; and leave travelling allowance of Kshs.4,500, which was unopposed and lower than the CBA rate.
Legal principles established
#- Where terminal dues are computed on a salary lower than that prescribed by a CBA applicable to the employee's position, the dues are underpaid and the court will reassess them using the CBA salary
- A CBA that came into effect after termination of employment is not applicable to the terminated employee
Court orders
#- 1.Judgment entered for the Claimant in the sum of Kshs.3,457,102.20
- 2.Award to be paid subject to the Kshs.481,422.47 already paid after the lay off and in addition to statutory deductions
- 3.Costs of the suit to the Claimant
- 4.Interest on the award from the date of filing suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (statutory basis not expressly cited in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Annie Kiragu v Somak Travel Ltd [2018] KEELRC 1679 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1679/eng@2018-02-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.