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ELRCPartially AllowedCauses Nos. 457, 458, 459 and 460 of 2017 (Consolidated)· [2019] KEELRC 137 (KLR)

Erick Oyier Omondi & 3 others v Catholic University of East Africa [2019] KEELRC 137 (KLR)

Employment and Labour Relations Court
9 December 2019
612 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan court refused damages to lecturers paid their salaries late, but awarded them interest and costs for the delay and inconvenience.

What this practically means

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Executive summary

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This is a first-instance judgment of the Employment and Labour Relations Court in four consolidated causes (Nos. 457, 458, 459 and 460 of 2017) brought by part-time lecturers at the respondent's Kisumu campus, who were engaged on contracts paying per session at the end of each month. The suits were partly settled by a consent dated 9th July 2018, leaving for determination only the claims for damages for late payment of salaries, interest and costs. The arrears accrued for 2015 and 2016: Kshs. 92,000 for Erick Oyier Omondi, Kshs. 324,000 for Dr. David O. Oima, Kshs. 796,105 for Dr. Mercy Oluoch and Kshs. 264,000 for Dr. Sambo Ntongei. The claimants sought damages for breach of contractual and statutory duty, relying on Article 41 of the Constitution and Sections 17 and 25 of the Employment Act, 2007. The respondent admitted the delay, attributed it to financial constraints caused by dwindling student numbers, and relied on Gladys M. Vundi vs Bank of Africa (Kenya) Limited (2013 eKLR) on proportionality and fairness in employment remedies. Nduma J declined to award damages, holding that the breach was unintended and the respondent had paid the salaries in full pursuant to the consent. However, finding that the claimants suffered loss and great inconvenience from the late payment, the court awarded each claimant interest on the paid arrears at court rates from 1st January 2016 until payment in full, and ordered the respondent to pay the costs of the suit.

Key legal issues

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01

Whether the claimants were entitled to damages for the respondent's delay in paying salaries for 2015 and 2016

Holding

Damages were refused because the respondent admitted the arrears, paid them in full pursuant to a consent, and the delay was caused by financial constraints beyond its control from dwindling student enrolment.

Reasoning

The court weighed the respondent's admission and full payment under a consent dated 9th July 2018 against the claimants' entitlement to damages for late payment. Invoking proportionality and fairness in employment remedies, it held that the breach was unintended and that penalising the respondent after full payment would not be appropriate, though the claimants indisputably suffered inconvenience from the delay.

p. 2
02

Whether the claimants were entitled to interest on the arrear salaries

Holding

Interest on the paid arrears was awarded at court rates from 1st January 2016 until payment in full.

Reasoning

Although damages were declined, the court found that the claimants suffered loss and great inconvenience from the late payment of salaries. To compensate for that loss, it exercised its discretion to order interest on the amounts previously owed and now paid, running from the start of 2016 to the date of full payment.

p. 2

Legal principles established

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  • A claimant whose employer admittedly delayed payment of salary but who has since been paid in full following a consent may be denied general damages where the breach was unintended and the delay occasioned by circumstances beyond the employer's control, but the court may still award interest on the delayed amounts as compensation for the loss and inconvenience suffered.

Court orders

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  1. 1.Each claimant is awarded interest on the arrear salaries previously owed but now paid, calculated at court rates from 1st January 2016 up to the time the full amounts were paid in full
  2. 2.The respondent is to pay the costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 41
  • Employment Act, 2007Section 17(10)(a) and (b)
  • Employment Act, 2007Sections 17 and 25

Cases cited (1)

  • Gladys M. Vundi vs Bank of Africa (Kenya) Limited
    2013 eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction under Article 41 of the Constitution and the Employment Act, 2007

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, "Erick Oyier Omondi & 3 others v Catholic University of East Africa [2019] KEELRC 137 (KLR)", Case Analysis (2019). Causes Nos. 457, 458, 459 and 460 of 2017 (Consolidated). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/137/eng@2019-12-09

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