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ELRCDismissedCause No. 746 of 2014 (Ruling No. 2)· [2019] KEELRC 2334 (KLR)

John Mutia Maluki v Schenker Limited [2019] KEELRC 2334 (KLR)

Employment and Labour Relations Court
1 February 2019
641 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court dismissed Schenker Limited's attempt to delay a Kshs 500,000 payment, ruling the money already set aside covered tax deductions, and ordered payment within 7 days.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi (Radido Stephen, Judge) disposed of an application filed by the Respondent, Schenker Limited, on 21 November 2018. Judgment had been entered for the Claimant, John Mutia Maluki, on 15 January 2018 for Kshs 132,000/- pay in lieu of notice and Kshs 792,000/- compensation, with costs and interest. On 20 February 2018 the parties, at the Court's prompting, recorded a consent - adopted on 21 February 2018 - that Kshs 500,000/- be paid to the Claimant and the balance of Kshs 420,000/- be deposited into a joint interest-earning account in the names of the advocates. After the party and party bill of costs was taxed on 8 November 2018, the Respondent sought orders directing the Claimant to comply with the consent, a status quo order in terms of the earlier stay, and alternatively an order that the Respondent deposit the entire decretal award in Court as security for stay pending appeal, relying on section 49(2) of the Employment Act, 2007, on the basis that it had made statutory deductions of Kshs 142,677/- from the Kshs 500,000/-. The Claimant opposed the application as frivolous, vexatious and an abuse of process. The Court found the deposited sum more than adequate to cater for the statutory deductions, observed that the application should never have been brought, and inferred from the roughly seven-month delay - coming only after taxation - that it was meant to frustrate the Claimant from enjoying the fruits of the judgment. The application was dismissed; the Respondent was ordered to pay the Claimant Kshs 500,000/- within 7 days, with costs to the Claimant.

Key legal issues

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01

Whether the Respondent was entitled to an order enforcing the consent to permit deduction of statutory amounts from the Kshs 500,000/- payment

Holding

The application was dismissed; the consent already provided security for the deductions through the joint interest-earning account

Reasoning

The Respondent had agreed in the consent of 20 February 2018 that Kshs 500,000/- be paid to the Claimant and the balance of Kshs 420,000/- be deposited into a joint interest earning account. The Court found the deposited amount adequate to cover statutory deductions contemplated by section 49 of the Employment Act, 2007, and saw the application as an attempt to delay the Claimant's enjoyment of the judgment, coming only after taxation of costs.

p. 2
02

Whether the application was an abuse of court process

Holding

The Court found it was; the Respondent waited about 7 months after the consent, moving only after taxation of the bill of costs

Reasoning

The Court observed that advocates should be candid with clients and that parties should not bring disputes they could agree on, saving judicial time and avoiding escalation of legal costs. The timing - filing only after costs were taxed on 8 November 2018 - suggested the application was designed to frustrate execution rather than address a genuine grievance about statutory deductions.

p. 2

Legal principles established

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  • The decretal sum deposited into a joint interest-earning account was sufficient to cater for statutory deductions on the amount payable under the consent

Court orders

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  1. 1.Declined to grant any of the orders sought in the application filed on 21 November 2018
  2. 2.Ordered the Respondent to pay the Claimant the sum of Kshs 500,000/- as agreed in the consent within 7 days
  3. 3.Costs to the Claimant

Authorities

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Legislation

  • Employment Actsection 49(2)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over its own orders and proceedings

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, "John Mutia Maluki v Schenker Limited [2019] KEELRC 2334 (KLR)", Case Analysis (2019). Cause No. 746 of 2014 (Ruling No. 2). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2334/eng@2019-02-01

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