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ELRCPartially AllowedCause No 983 of 2014· [2023] KEELRC 859 (KLR)

Gathondeka v Attorney General & another (Cause 983 of 2014) [2023] KEELRC 859 (KLR)

Employment and Labour Relations Court
5 April 2023
3,673 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that a state employer cut an employee's salary without valid proof of wrongdoing, and must pay back the money plus costs.

What this practically means

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Executive summary

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The claimant, an artisan (panel beater) employed by the Ministry of Defence in 1979, sued the Hon. Attorney General and the National Industrial Training Scheme after his salary was slashed from 2014 on the allegation that his Grade I trade test certificate (No. 565570) was fake. He claimed withheld salary, allowances, mesne profits, and enhanced retirement benefits, asserting his demotion and pay cut were unilateral, malicious and unsubstantiated. The respondents denied the certificate's authenticity, asserting the impugned certificate (No. 865570) was forged and belonged to a third party, that disciplinary and verification procedures under the Public Service Commission Regulations and NITA rules were followed, and that the claimant failed to exhaust internal remedies. The respondents called no witness, relying on an affidavit of a NITA officer who searched a certificate numbered 86570. The court found the evidence on which certificate was fake hopelessly confused and unverified, and held the employer had failed to prove valid grounds for slashing the salary, demoting the claimant, or recovering money from him, contrary to sections 10, 17, 19 and 43 of the Employment Act. The claimant's underpaid salary for 2014-2017, house allowance, and interest were awarded; unspecified allowances and speculative prayers were refused; retirement benefits were left for computation and agreement by the parties by 20th April 2023. No liability was found against the 2nd respondent. Costs followed the event in the claimant's favour, and the case was set for mention to confirm retirement benefits.

Key legal issues

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01

Authenticity of the certificate justifying the salary reduction

Holding

The 1st respondent failed to prove the certificate was fake; the evidence on the certificate number was confused and unverified, so the salary cut was unjustified

Reasoning

The NITA officer's affidavit referred to certificate No.86570 belonging to one John K. Maina, but that number matched none of the certificates in issue (885570, 565570, 865570). The officer never testified to correct or clarify, and deposed six years after the fact. The court therefore held the employer had no valid or verified grounds for slashing the salary.

p. 5
02

Unilateral salary reduction and demotion

Holding

The salary reduction and demotion were unfair and in breach of sections 10, 17 and 19 of the Employment Act

Reasoning

Section 17 requires payment of full salary; section 19 prescribes the only permissible deductions; section 10(5) requires consultation before changing terms. The employer cut pay without consultation, recovered unexplained sums, and gave no justification for the demotion, hence unfair treatment.

p. 5
03

Burden of proving reasons for adverse employment action

Holding

Under section 43(1) of the Employment Act, the employer bears the burden of proving the reason for termination or adverse action; failure renders the action unfair

Reasoning

The 1st respondent did not terminate the claimant but unilaterally deducted his salary; it was the employer who had to prove valid reasons for the disciplinary action. Having failed to do so, and given the claimant's good performance evaluation, the action was unfair.

p. 6
04

Exhaustion of internal mechanisms

Holding

The claimant was not barred from approaching the court; a decision had already been taken and his letter to the Ministry went unanswered

Reasoning

The respondents argued the claimant should have appealed to the Minister under Regulation 18 of the Industrial Training Rules and exhausted internal mechanisms. The court held that the decision to reduce salary had already been made and the claimant's letter of 23rd August 2016 received no response, so court redress was available.

p. 6

Legal principles established

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  • An employer must not unilaterally reduce an employee's terms of employment to the employee's disadvantage without consultation or consent
  • Where an employer takes adverse action against an employee, the employer bears the burden of proving valid reasons for that action
  • Demotion without consultation fundamentally alters conditions of employment and constitutes double punishment
  • There is no mandatory provision barring an employee from seeking legal redress in court against an employer

Court orders

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  1. 1.Kshs.121,228.00 for underpaid salary from April 2014 to December 2014 and January 2015 to March 2015
  2. 2.Kshs.95,040.00 for underpaid salary from April 2015 to April 2016
  3. 3.Kshs.143,040.00 for underpaid salary from May 2016 to April 2017
  4. 4.Kshs.23,840.00 for underpayment of salary for May and June 2017
  5. 5.Kshs.228,000.00 house allowance (Kshs.6,000 x 38 months)
  6. 6.The 1st respondent and the Claimant to agree on the retirement benefits due and report to Court by 20th April 2023
  7. 7.Interest on amounts awarded at Court rates from date of judgment until full payment
  8. 8.Costs of the claim awarded to the Claimant
  9. 9.Case to be mentioned on 20th April 2023 to confirm retirement benefits

Authorities

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Legislation

  • Employment ActSection 10(5)
  • Employment ActSection 17
  • Employment ActSection 19
  • Employment ActSection 43(1)
  • Employment ActSection 45
  • Public Service Commission Regulations2005
  • Industrial Training RulesRegulation 18
  • Constitution of KenyaArticles 47 and 50
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (7)

  • Non-Governmental Organizations Co-Ordination Board -vs- Eg & Other (2019) eKLR
    (2019) eKLR
  • Miller -vs- Minister of Pensions (1947) 2 All ER 372
    (1947) 2 All ER 372
  • Juliana Mulikwa Muindi -vs- Board of Manufacturing Yangua Mixed Secondary School and Another (2018) eKLR
    (2018) eKLR
  • Kenfreight (E.A) Limited -vs- Benson N. Nguti (2016) eKLR
    (2016) eKLR
  • Godfrey Odipo -vs- Tabasamu Sacco Ltd, Cause No. 68 of 2010
    Cause No. 68 of 2010
  • Motors Mwatemu -vs- Salama Beach Hotel Limited, Cause No. 12 of 2017
    Cause No. 12 of 2017
  • ELRC 97 of 2015 (relied on by the Claimant in submissions)
    ELRC 97 of 2015
Jurisdiction invoked
Employment and labour relations jurisdiction of the Employment and Labour Relations Court under Article 162(2) of the Constitution (claim for unfair treatment, salary reduction and retirement benefits in employment)

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, "Gathondeka v Attorney General & another (Cause 983 of 2014) [2023] KEELRC 859 (KLR)", Case Analysis (2023). Cause No 983 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/859/eng@2023-04-05

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