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ELRCPartially AllowedCause No 718 of 2016· [2020] KEELRC 892 (KLR)

Joseph Mungai Keriko v Jomo Kenyatta University of Agriculture and Technology & 2 others [2020] KEELRC 892 (KLR)

Employment and Labour Relations Court
12 June 2020
4,298 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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JKUAT cannot cut a professor's salary when he returns from leave of absence; his employment never ended, so inferior terms were unlawful and arrears are payable.

What this practically means

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Executive summary

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The claimant, a Professor of Organic Chemistry at JKUAT, was released on five years' leave of absence without pay in December 2012 to serve as Principal of Kirinyaga University College. He resigned in May 2013 and resumed duty at JKUAT as Professor, but was paid a gross salary of Kshs.255,113 instead of the Kshs.584,011 he earned before release. He sued claiming the salary reduction was unlawful, discriminatory and constructive dismissal, relying on IPUCCF resolutions of January 2013 requiring returning senior staff to retain their exit salaries, and sought arrears of Kshs.15,561,112.24, denial of management support and extraneous allowances of Kshs.1,782,000, and gratuity arrears of Kshs.380,000. The respondents denied reducing his salary, contending he was re-engaged afresh as Professor under terms he accepted, that the IPUCCF resolutions required SRC approval which was never obtained, and that claims arising 2009-2012 were time barred under Section 90 of the Employment Act. The court, proceeding on agreed facts, held the allowance and gratuity claims were time barred as they were specific, non-recurrent injuries. On the salary reduction, the court held that because the claimant was on leave of absence rather than terminated employment, he could not resume on inferior terms; only administrative-function allowances could be withdrawn, and reducing the pensionable basic salary and house allowance amounted to degrading treatment. The 2015 circular relied on by the respondents did not assist them. The court declared the claimant entitled to his former basic salary, house allowance and commuter allowance with increments, directed the respondents to tabulate arrears within 30 days for adoption as the final award, awarded costs to the claimant against the 1st respondent with interest from filing suit.

Key legal issues

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01

Whether the salary reduction on resumption of duty was unlawful

Holding

The reduction was unlawful; the claimant was entitled to his pre-release basic salary, house allowance and commuter allowance plus annual increments and CBA increases

Reasoning

The claimant was granted leave of absence without pay, so his employment never terminated. The respondents failed to explain why his salary on resumption fell below what he earned before release. The 14th May 2015 circular relied on by the respondents post-dated the dispute and did not authorise inferior terms. Only administrative-function allowances could be withdrawn.

p. 7
02

Whether the allowance and gratuity claims were time barred

Holding

Yes, the claims for Kshs.1,782,000 allowances and Kshs.380,000 gratuity arising 2009-2012 were time barred under Section 90 of the Employment Act

Reasoning

Section 90 requires actions arising from a contract of service to be instituted within three years, or within twelve months for continuing injuries. These claims accrued while the claimant was Principal of Nairobi Westlands Campus (2009-2012) and were of a specific, non-recurrent nature with a fixed payable period, so they were not continuing injuries.

p. 6
03

Whether reduction of salary constituted discrimination and constructive dismissal

Holding

The court found the salary reduction unlawful and degrading but did not sustain a finding of constructive dismissal since employment subsisted

Reasoning

Because the claimant remained an employee on leave of absence and resumed duty, the employment relationship was intact; the court addressed the reduction as unlawful rather than as constructive dismissal, while noting the degrading aspect of reducing pensionable basic salary and house allowance.

p. 7

Legal principles established

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  • An employee on leave of absence without pay does not have a terminated employment and cannot resume duty on inferior terms
  • Only allowances tied to administrative functions may be withdrawn from an employee reverting to a substantive position
  • Reducing basic salary and house allowance that underpin pension contributions amounts to degrading treatment

Court orders

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  1. 1.Declaration that the claimant is entitled to a basic salary of Kshs.348,056, house allowance of Kshs.69,033 and commuter allowance of Kshs.13,000 upon resumption of duty
  2. 2.The entitlement to be factored with all annual increments of 4% per annum and any CBA salary increases
  3. 3.Respondents directed to tabulate the salary payable to the claimant together with arrears and file in court within 30 days from the date of judgment
  4. 4.Mention on 30th July 2020 for adoption of the tabulation as the final award of the court
  5. 5.The 1st respondent to pay the claimant's costs of the suit
  6. 6.Interest at court rates from date of filing suit

Authorities

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Legislation

  • Constitution of KenyaArticles 27, 28, 41, 47, 159(2)(d), 48, 230(1)
  • Universities ActSection 35
  • Employment ActSection 90
  • Limitation of Actions ActSection 4(1)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (4)

  • James Tuitoek v Chief of Public Service & Another
    [2016] eKLR
  • George Hiram Ndirangu v Equity Limited
    [2015] eKLR
  • Kenya Union of Domestic Hotels Education and Allied Workers v Salaries and Remuneration Commission
    [2014] eKLR
  • Universities Academic Staff Union (UASU) v Salaries and Remuneration Commission & Another
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Constitution Articles 27, 28, 41 and 47

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 Mungai Keriko v Jomo Kenyatta University of Agriculture and Technology & 2 others [2020] KEELRC 892 (KLR)", Case Analysis (2020). Cause No 718 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/892/eng@2020-06-12

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