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ELRCPartially AllowedMemorandum of Claim dated 22nd October 2020 (filed 26th October 2020) - ELRC Cause, Mombasa· [2022] KEELRC 1471 (KLR)

Steve v Kenya Ports Authority (Cause E008 of 2020) [2022] KEELRC 1471 (KLR)

Employment and Labour Relations Court
26 May 2022
3,177 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that Kenya Ports Authority unfairly kept an employee in a higher role for nearly seven years without higher pay, awarding him over Ksh.1.6 million.

What this practically means

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Executive summary

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The Claimant, employed by Kenya Ports Authority in 1994 as a Permanent Way Inspector, was posted by the Head of Civil Engineering's letter dated 26th July 2013 to perform the duties of Senior Permanent Way Officer Grade HM2 in acting capacity. The Respondent's Managing Director declined to confirm the appointment on the ground that the Claimant lacked the qualifications stipulated in the Scheme of Service (a degree and Higher National Diploma in Civil Engineering). The Head of Department appealed twice, without success, but nothing in the record showed the Claimant was ever recalled from the post; he remained on it until retirement on 26th May 2020, earning only his HM3 salary. The court found he acted in the higher post for six years and ten months. Holding that refusal to confirm while retaining the Claimant on the higher post without pay was unfair labour practice, the court nevertheless declined the declarations of entitlement to full HM2 salary and allowances because the pleaded underpayment and allowance variance were special damages requiring strict proof, and neither party produced the applicable Scheme of Service or evidence of the HM2 salary and allowances. The court instead adopted the Head of Human Resource's latest proposal of an acting allowance of 15% of the Claimant's substantive basic salary of Ksh.132,300, holding the non-payment to be a continuing injury under Section 90 of the Employment Act that ceased on retirement, making the suit filed on 26th October 2020 timely. Judgment was entered for the Claimant for Ksh.1,627,290, with costs and interest at court rates.

Key legal issues

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01

Whether the Claimant acted as Senior Permanent Way Officer Grade HM2 and for how long

Holding

The Claimant was appointed to the post in acting capacity with effect from 26th July 2013 and remained on it until his retirement on 26th May 2020 (six years and ten months), though never formally confirmed

Reasoning

The Head of Civil Engineering's letter of 26th July 2013 effected internal posting of the Claimant to the senior post. Although management declined confirmation for lack of qualifications, there was no evidence that the Claimant was ever recalled from the post. His uncontroverted testimony was that he remained there until retirement.

p. 6
02

Whether the Claimant suffered unfair labour practice

Holding

Yes - the Respondent's refusal to confirm the Claimant while continuing to hold him to the higher post without pay and allowances was unfair labour practice

Reasoning

The court found no justification for the Respondent to decline confirmation yet keep the Claimant performing the higher duties for nearly seven years without the attendant remuneration. Uncontroverted evidence of diligent performance of the higher duties supported the finding.

p. 6
03

Entitlement to and quantum of the reliefs sought

Holding

Declarations of entitlement to full HM2 salary and allowances declined; instead the Claimant awarded 15% of his substantive basic salary of Ksh.132,300 per month from August 2013 to May 2020

Reasoning

The pleaded underpayment and allowance variance were special damages requiring strict proof. Neither party produced the Scheme of Service showing HM2 salary and allowances for the relevant period, and the Claimant did not cross-examine RW-1 on the point. The court fell back on the Human Resource Head's proposals of 10% (2013) and 15% (2015), adopting the latest.

p. 7
04

Limitation under Section 90 of the Employment Act

Holding

The failure to pay for acting in the higher post was a continuing injury which ceased on retirement on 26th May 2020; the suit filed 26th October 2020 was within the limitation period

Reasoning

Section 90 applies to continuing injuries; since the injury continued until retirement shortly before filing, the claim was not time-barred.

p. 7

Legal principles established

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  • A claim for salary underpayment and allowance variance is in the nature of special damages and must be strictly proved with evidence of the applicable salary structures
  • Non-payment for work done in acting capacity on a higher job grade amounts to a continuing injury under Section 90 of the Employment Act 2007, which ceases upon the employee's retirement
  • Where an employer posts an employee to perform duties of a higher post without confirming him, refusal to pay the higher salary and allowances for years constitutes unfair labour practice
  • Where the precise higher-grade salary cannot be proved, an internal proposal by the employer's Head of Human Resource to pay an acting allowance (percentage of substantive basic salary) may be adopted to compute the award

Court orders

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  1. 1.Judgment entered in favour of the Claimant against the Respondent for Ksh.1,627,290 being 15% of the Claimant's substantive monthly salary of Ksh.132,300 payable for six years and ten months (August 2013 to May 2020)
  2. 2.Costs of the claim awarded to the Claimant
  3. 3.Interest at court rates on the award
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims under the Employment Act 2007

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, "Steve v Kenya Ports Authority (Cause E008 of 2020) [2022] KEELRC 1471 (KLR)", Case Analysis (2022). Memorandum of Claim dated 22nd October 2020 (filed 26th October 2020) - ELRC Cause, Mombasa. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1471/eng@2022-05-26

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