Rattos v Sun Africa Hotels Limited (Cause E575 of 2021) [2023] KEELRC 725 (KLR)
The bottom line
#A Kenyan hotel must pay a former manager Kshs 1.4 million because its own HR department calculated the figure and the employer is bound by it.
What this practically means
#Executive summary
#Key legal issues
#Whether the Respondent was bound by the computation of terminal dues prepared by its Human Resource Manager
Yes; the computation originated from the Respondent, was not shown to be influenced by the Claimant, and no alternative computation was offered
The parties did not dispute that the computation came from HR Manager Hildah, who had the Claimant's complete personnel file. There was no evidence of manipulation by the Claimant, no alternative computation, and no proof that approval by other departments was required or withheld for any reason. The items in the computation therefore bound the Respondent, and it was wrong not to pay or propose an alternative amount.
Whether the Claimant was entitled to service pay/gratuity despite NSSF subscription
Yes; other former employees were paid gratuity and no evidence showed any recipient was a union member, undermining the NSSF objection
Other employees who left were paid terminal dues including gratuity within two months of exit, and no evidence showed any gratuity recipient was a trade union member. The Respondent raised these arguments only after computing the dues, and the Court treated them as unnecessary afterthoughts.
Whether interest was payable and from what date
Yes, at court rate from April 3, 2020, the date of default
The computation was ready at the time the Claimant left employment, yet the Respondent withheld the ascertained sum even after the Claimant demanded payment months later. Withholding was not right and interest from the date of default was merited.
Legal principles established
#- An employer which computes an employee's terminal dues through its Human Resource Manager is bound by that computation and cannot escape it by raising fresh objections after the fact
- Withholding ascertained terminal dues after demand justifies an award of interest from the date of default
Court orders
#- 1.The Claim is allowed
- 2.The Respondent shall pay to the Claimant terminal dues as computed by Respondent's Human Resource Manager, at a net sum of Kshs 1,427,635.61
- 3.Interest granted at court rate from the date of default, April 3, 2020, till payment is made in full
- 4.Costs to the Claimant
- Jurisdiction invoked
- Employment and Labour Relations Court original jurisdiction under the Employment Act and the Employment and Labour Relations Court Act (dispute over terminal dues)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Rattos v Sun Africa Hotels Limited (Cause E575 of 2021) [2023] KEELRC 725 (KLR)", Case Analysis (2023). Cause No E575 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/725/eng@2023-03-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.