Zephaniah Mauti Ogisia & 2 others v Peter Mwendwa t/a Pemwe Secure Services [2019] KEELRC 2573 (KLR)

Employment and Labour Relations Court of Kenya

29 April 2019

MMM. Mbaru

978 words in judgment

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The bottom line

Kenya's Employment Court ruled that workers who sign a settlement before a labour officer cannot later claim more dues unless they prove fraud or misrepresentation.

What this practically means

Executive summary

Three night guards employed by the respondent, a security services provider, claimed notice pay, underpayments, overtime, off-duty pay, public holiday pay, leave pay, gratuity and compensation following the termination of their employment on 31st December 2014, when they were directed to hand over uniforms and company property and verbally informed their employment had ended. They alleged working 6pm to 6am seven days a week without rest or compensation contrary to section 27(2) of the Employment Act, underpayment against wage orders, and no annual leave, with termination without notice, hearing or terminal dues. The 1st claimant testified in a representative capacity under letters of consent from the 2nd and 3rd claimants. The respondent's defence, led by manager John Mwendwa, was that its client, Valley Confectionary Limited, terminated the security contract on 31st December 2014; the claimants were offered redeployment in Nairobi but declined and reported to the labour officer, before whom terminal dues were agreed and paid (Ksh.22,056, Ksh.49,175 and Ksh.22,346 respectively) under a signed agreement dated 28th July 2015. The 1st claimant conceded in cross-examination that the 3rd claimant was paid in full and that his concern was the absence of a breakdown of payments made in bits. The court held the settlement binding absent proof of fraud, misrepresentation or unlawfulness, relying on section 15 of the Employment and Labour Relations Court Act, 2011, and found the matter resolved by settlement, with all claims addressed. Judgment delivered at Nakuru on 29th April 2019 by M. Mbaru, Judge.

Key legal issues

Effect of a conciliated settlement recorded before the labour officer

Holding

The court found the matter resolved by settlement and addressed the claims accordingly

Reasoning

The claimants reported the dispute to the labour officer, an agreement was drawn and signed by all claimants, and payments were made in bits. The 1st claimant conceded in cross-examination that the 3rd claimant was paid in full settlement and that his own complaint was only the lack of a breakdown of payments. Having signed the settlement, the claimants could only reopen it by proving fraud, misrepresentation or unlawfulness, which they did not do. Under section 15 of the Employment and Labour Relations Court Act, 2011, the terminal dues stand paid.

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Whether termination of employment was unlawful for want of notice and hearing

Holding

Not determined in the claimants' favour; the defence that the client's contract ended and the claimants declined redeployment and were paid terminal dues before the labour officer was accepted as dispositive via the settlement

Reasoning

The respondent's manager testified that Valley Confectionary Limited terminated its contract with the respondent by letter dated 8th December, 2014; the claimants were informed and offered redeployment in Nairobi but declined and reported to the labour officer, where terminal dues were agreed and paid. The claimants' assertion of unlawful termination did not survive the signed settlement, which the court treated as covering notice pay, leave, gratuity and other dues.

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Legal principles established

A settlement agreement signed by claimants before a labour officer is binding unless a party proves it was achieved by fraud, misrepresentation or unlawfully

Court orders

1.The court found the matter resolved by settlement recorded before the labour officer
2.Claims herein addressed/dismissed as settled

Authorities

Legislation

Employment ActSection 27(2)
Employment and Labour Relations Court Act, 2011Section 15

Jurisdiction invoked: Employment and Labour Relations Court Act, 2011 (including section 15 on settlements recorded before the Labour Officer)

Key timeline

Practical implications

Frequently asked questions

Cite this brief

Caselaw, "Zephaniah Mauti Ogisia & 2 others v Peter Mwendwa t/a Pemwe Secure Services [2019] KEELRC 2573 (KLR)", Case Analysis (2019). Cause No. 379 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2573/eng@2019-04-29

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