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ELRCOtherCause No 2324 of 2017· [2019] KEELRC 980 (KLR)

Kenya Shipping, Clearing and Warehouses Workers Union v Sunripe (1976) Limited [2019] KEELRC 980 (KLR)

Employment and Labour Relations Court
26 July 2019
532 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court fixed redundancy payouts for 103 workers: notice pay, three years' capped leave pay, and one month's ex-gratia salary.

What this practically means

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Executive summary

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This ruling by the Employment and Labour Relations Court at Nairobi, delivered by Maureen Onyango, J on 26th July 2019, arises from the court's judgment of 17th August 2018 in which the parties were ordered to agree on the amount payable to 103 employees declared redundant and to report back within 30 days. The parties failed to agree on the list of employees and the amounts payable, prompting the Applicant to file a Notice of Motion on 7th December 2018 seeking amendment of the judgment by deleting the sentence 'inline with payments made to 71 employees'. The Applicant, relying on its tabulation filed in December 2018 and Section 40 of the Employment Act, submitted that the Respondent had failed to understand the judgment. The Respondent countered that the Claimant's list was defective, containing duplicated names and names of employees still in employment or who had voluntarily left, and that the 71 grievants had already been paid in full pursuant to the Labour Officer's recommendations. The court reiterated that its earlier judgment had ordered payment to the 103 employees in line with payments made to the 71 employees, which followed the Labour Officer's recommendations comprising notice pay, accrued leave capped at three years, and ex-gratia payment. The court did not grant the amendment sought; instead, it directed that the employees be paid one month's salary in lieu of notice under Section 40(1)(f) for all employees including temporary/seasonal employees, leave pay capped at three years, and ex-gratia pay of one month's salary, with any disagreement on figures to be referred to the Labour Officer for tabulation.

Key legal issues

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01

Computation of redundancy payments to the 103 employees following failure of the parties to agree as directed in the judgment of 17th August 2018

Holding

The court fixed the payment formula: one month's salary in lieu of notice under Section 40(1)(f) of the Employment Act for all employees including temporary/seasonal employees; leave pay capped at three years for all employees; and ex-gratia pay of one month's salary

Reasoning

The prior judgment ordered payment to 103 employees in line with payments made to 71 employees paid earlier pursuant to the Labour Officer's recommendations, which comprised notice pay, accrued leave capped at three years, and ex-gratia payment. The parties failed to agree on the list and amounts, each filing conflicting tabulations, with the Respondent alleging the Claimant's list contained duplicated names and names of still-employed or departed workers. The court therefore adopted the Labour Officer's recommended heads and Section 40(1)(f) and directed referral to the Labour Officer should disagreement on figures persist.

p. 2
02

Whether the judgment should be amended by deleting the reference to payments made to 71 employees

Holding

The court did not allow the amendment but instead gave directions resolving the dispute over computation

Reasoning

The Applicant sought amendment of the sentence 'inline with payments made to 71 employees', contending the Respondent failed to understand the judgment. The Respondent maintained the 71 grievants were paid in full as directed by the labour office and that the Claimant's tabulation was defective. Rather than amend, the court invoked its earlier judgment and the Labour Officer's recommendations to issue a concrete formula for payment to the 103 employees, with a fallback referral to the Labour Officer on figures.

p. 1

Legal principles established

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  • Where parties fail to agree on redundancy payments as directed, the court may itself fix the payable heads: one month's salary in lieu of notice under Section 40(1)(f) for all employees including temporary/seasonal ones, leave pay capped at three years, and one month's salary as ex-gratia payment

Court orders

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  1. 1.That the employees be paid one month's salary in lieu of notice as provided in Section 40(1)(f) of the Employment Act for all employees including those on temporary/seasonal employment contracts
  2. 2.That there be pay in lieu of annual leave capped at three (3) years for all employees including those on temporary/seasonal employment contracts
  3. 3.That there be ex-gratia pay at one (1) month's salary
  4. 4.That should parties disagree on the figures they will go to the Labour Officer who will assist them to tabulate the same

Authorities

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Legislation

  • Employment ActSection 40
  • Employment ActSection 40(1)(f)
Jurisdiction invoked
Jurisdiction flowing from the court's prior judgment of 17th August 2018 directing the parties to agree on amounts payable to 103 declared redundant employees; no specific constitutional or statutory provision invoked for jurisdiction

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, "Kenya Shipping, Clearing and Warehouses Workers Union v Sunripe (1976) Limited [2019] KEELRC 980 (KLR)", Case Analysis (2019). Cause No 2324 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/980/eng@2019-07-26

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