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ELRCPartially AllowedCause No 731 of 2017· [2019] KEELRC 1786 (KLR)

Joseph Mukhwana Masinde v Hakika Transport Services Limited [2019] KEELRC 1786 (KLR)

Employment and Labour Relations Court
2 May 2019
LNLinnet Ndolo
890 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An employer in Kenya was forced to honour a labour conciliation settlement and pay an unfairly terminated worker Kshs. 54,900.

What this practically means

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Executive summary

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The Claimant, employed as a Tractor Driver on 2nd June 2014 at a monthly salary of Kshs. 18,300, sued for wrongful and unfair termination following the termination of his employment on 4th March 2015. He sought one month's notice pay, leave pay, service pay, overtime, twelve months' compensation, a certificate of service, costs and interest. The Respondent admitted the employment but contended the Claimant absconded duty after declining to attend a disciplinary meeting, and further argued the claim was res judicata, having been resolved through a conciliation process at the Ministry of Labour. Following a Conciliator's report, a settlement agreement dated 1st December 2015, signed by management, the affected employees and a union representative, and witnessed by the Conciliator, provided for prorata leave, two months' salary in compensation, one month's notice pay, and overtime and public holiday dues subject to production of records. The Court held that parties to a conciliation process are bound by its outcome absent manifest miscarriage of justice or contravention of the Constitution or written law, and refused to allow the Respondent to renege without proof of fraud or misrepresentation. The Court found the prorata leave claim already settled, and entered judgment for the Claimant for Kshs. 54,900, comprising two months' salary in compensation and one month's notice pay, with interest at court rates from the date of judgment until payment in full, plus costs of the case.

Key legal issues

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01

Whether the settlement agreement of 1st December 2015 bars the Claimant's claim

Holding

The claim is bound by the settlement agreement; only dues under it are recoverable, and the prorata leave component was already settled

Reasoning

After termination the Claimant and colleagues, through the union, lodged a complaint with the Ministry of Labour. A Conciliator issued a report and a settlement agreement was signed by management, employees, a union representative and witnessed by the Conciliator. It provided for leave, 2 months' compensation, notice pay, and overtime/public holidays subject to records. The Respondent attempted to renege in submissions without alleging fraud or misrepresentation. The Court held parties must be held to the agreement, and nothing suggested miscarriage of justice or constitutional violation.

p. 2

Legal principles established

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  • Parties to a conciliation process are bound by its outcome, barring manifest miscarriage of justice or contravention of the Constitution or written law
  • A party cannot renege on an executed settlement agreement without valid grounds such as fraud or misrepresentation

Court orders

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  1. 1.Judgment entered in favour of the Claimant for Kshs. 36,600 being 2 months' salary in compensation and Kshs. 18,300 being 1 month's salary in lieu of notice, total Kshs. 54,900
  2. 2.Interest on the said amount at court rates from the date of judgment until payment in full
  3. 3.Costs of the case awarded to the Claimant

Authorities

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Legislation

  • Employment Actleave entitlement provisions (referred to generally)

Cases cited (3)

  • Elizabeth Wanjiru Njogu v Kangei Nyakinyua Building Co. Ltd
    Cause No 385 of 2011
  • Wario Gorise v Vicky Kabetu (Director, Muthithi Plantation Estate)
    [2013] eKLR
  • Kenya Shoe and Leather Workers Union v Modern Soap Factory
    [2018] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (court of first instance in employment disputes)

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, "Joseph Mukhwana Masinde v Hakika Transport Services Limited [2019] KEELRC 1786 (KLR)", Case Analysis (2019). Cause No 731 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1786/eng@2019-05-02

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