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ELRCPartially AllowedCause 2250 of 2015· [2020] KEELRC 1254 (KLR)

Vivian Muia v Mzoori Limited [2020] KEELRC 1254 (KLR)

Employment and Labour Relations Court
15 April 2020
HWHellen S. Wasilwa
1,794 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled employers must pay fixed monthly salaries in full, even if they claim an employee hasn't completed assigned tasks.

What this practically means

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Executive summary

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The Claimant, Vivian Muia, was employed by the Respondent, Mzoori Limited, as Marketing Manager under a contract dated 2/3/2015 at a monthly salary of Kshs. 220,000/=. She claimed unpaid salaries for June to September 2015 totalling Kshs. 710,000/-, notice pay of Kshs. 220,000/-, general damages, costs and interest. She averred that from 29/7/2015 the Respondent withheld salaries until assigned tasks were completed; that some assigned duties fell outside her purview; that she was blocked from accessing work systems; and that she resigned verbally on 31/8/2015, after which the Respondent issued a termination notice. The Respondent contended that payment was for tasks completed, that the Claimant misrepresented her competence, failed to meet targets, did not work in September 2015, and counterclaimed Kshs. 220,000/- being one month's salary in lieu of notice. The Respondent filed no written submissions and its CEO's witness statement was not adopted, as its witness was not examined at trial. The court found the contract provided a fixed monthly salary not contingent on deliverables, and that withholding salary for uncompleted tasks breached the express contract terms. The court held the Claimant, terminated on 1/9/2015, was not entitled to September salary as such but was entitled to one month's notice pay, which was never given. The claim was found merited, and the court awarded the Claimant Kshs. 710,000/- as prayed, less statutory deductions, with costs of the suit to the Claimant.

Key legal issues

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01

Nature of the remuneration clause and breach of contract

Holding

The Claimant's salary of Kshs. 220,000/= per month was not contingent on deliverables; the Respondent's refusal to pay on account of uncompleted tasks breached the express terms of the contract.

Reasoning

The court examined the contract of employment and found it provided for remuneration of Kshs. 220,000/= per month without conditioning payment on completion of specific tasks. The Respondent's decision to halt payment until tasks were completed therefore departed from the express contractual provisions and constituted breach, entitling the Claimant to the withheld salary.

p. 3
02

Entitlement to salary for September 2015 and notice

Holding

The Claimant, having been terminated on 1/9/2015, was not entitled to September salary as such but was entitled to one month's notice pay, which the Respondent had not given.

Reasoning

The court accepted the termination date of 1/9/2015, meaning the Claimant could not earn salary for a month in which she did not work. However, since no one month's notice was given as the contract required, the Claimant was entitled to notice pay, which in amount matched the claimed September salary within the global award.

p. 3

Legal principles established

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  • Where a contract of employment provides for a fixed monthly salary, payment is not contingent on deliverables, and an employer cannot withhold salary on the basis of uncompleted tasks.

Court orders

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  1. 1.The Respondent to pay the Claimant Kshs. 710,000/= as prayed, less statutory deductions
  2. 2.The Respondent to pay the costs of the suit

Authorities

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Cases cited (5)

  • Jimnah Muchiri vs. Agriculture Society of Kenya
    [2019] eKLR
  • Zipporah Gathuya vs. Registered Trustees of Gertrudes Garden T/A Gertrude Children's Hospital
    [2019] eKLR
  • Lucy Muingo Kusewa & Another vs. Embassy of Sweden
    [2017] eKLR
  • Gilbert Kambuni Ongeri vs. Kenyatta National Hospital
    [2018] eKLR
  • Stephen Maina Thumbi vs. Equity Bank Limited
    [2018] eKLR
Jurisdiction invoked
Article 162(2) of the Constitution establishing the Employment and Labour Relations Court (jurisdiction inherent in the court's establishment; not expressly quoted in the judgment)

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, "Vivian Muia v Mzoori Limited [2020] KEELRC 1254 (KLR)", Case Analysis (2020). Cause 2250 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1254/eng@2020-04-15

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