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ELRCPartially AllowedCause 56 of 2019· [2023] KEELRC 2351 (KLR)

Kenya Building Consruction, Timber and Furniture Industries Employees Union v Timsales Limited (Employment and Labour Relations Cause E029, E030 & E031 of 2021 (Consolidated)) [2023] KEELRC 2351 (KLR)

Employment and Labour Relations Court
5 October 2023
2,183 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled payslips alone don't prove workers were paid, awarding 117 former employees their unpaid salaries while rejecting unproved leave pay claims.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nakuru (Wasilwa J) deals with a supplementary report by the Labour Officer, Nakuru region, dated July 4, 2023, prepared pursuant to the court's ruling of June 20, 2023, on the computation of terminal dues awarded to 117 grievants in the judgment of January 17, 2023. The claimant submitted that the labour officer erred in awarding nil leave days for all grievants and in failing to compute days worked, arguing that payslips produced after judgment were not conclusive proof of payment and relying on Joseph Ouko Lwambe v Royal Garment Industries EPZ Limited. The respondent contended that leave pay and days worked were never specifically pleaded, that the court had become functus officio, and relied on authorities on the binding nature of pleadings, including Republic v Commissioner of Domestic Taxes Ex parte Sony Holdings Limited and Elizabeth O Odhiambo v South Nyanza Sugar Co. Limited. The court held that leave pay and days worked were indeed pleaded and awarded in the judgment of January 17, 2023, with computation delegated to the labour officer. It further held that a payslip is not proof of payment - bank statements or signed vouchers were required - and that the burden of proving payment lay on the respondent. The grievants were awarded salaries for June 2018 up to July 27, 2018. However, the leave pay claim failed because it was pleaded but not proved, the grievants not having indicated the periods of denied leave. Costs were in the cause.

Key legal issues

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01

Whether the claims for leave pay and days worked were pleaded

Holding

The court held that leave pay and payment for days worked were part of the prayers sought in the pleading and awarded in the judgment of January 17, 2023, with figures to be computed by the labour officer; the respondent's contention that these were never pleaded was erroneous.

Reasoning

The court referred back to paragraph 2 of its judgment of January 17, 2023, which set out the prayers sought by the claimants in their pleading. Leave pay and days worked and not paid for were expressly included in those prayers, and the judgment had only left computation of figures to the labour officer. The court's decisions were therefore anchored on the pleadings, and the respondent's submission that the prayers were never sought or awarded was found to be incorrect.

p. 4
02

Whether payslips constitute proof of payment

Holding

Payslips are not conclusive proof of payment; the respondent ought to have produced bank statements or vouchers signed by the claimants. Payment of June and July 2018 salaries was therefore not proved and the grievants are entitled to those salaries.

Reasoning

The burden of proving payment for days worked lay on the respondent. Although payslips were produced, the court held they do not affirm that an employee has actually been paid, as they are employer-prepared documents showing entitlements. The claimants' evidence that they had not been paid, leading to closure of the company and lock-out, remained unrebutted by proper proof of payment. The unpaid salaries for June 2018 up to July 27, 2018 must therefore be paid.

p. 4
03

Whether the grievants were entitled to leave pay

Holding

The claim for leave pay was pleaded but not proved, as the grievants did not specify the periods during which they did not take leave or show that leave was applied for and denied; they are not entitled to leave pay for the unspecified periods.

Reasoning

Although the court had earlier directed computation of leave pay for all 117 grievants, on reconsideration the court found that the claimants were not explicit about the period during which they did not go on leave, and gave no indication that they applied for leave within a particular period and were denied it. In the absence of such particulars, the claim, though pleaded, was not proved to the required standard, and no leave pay was awarded.

p. 5

Legal principles established

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  • A payslip is not proof of payment of salary; proof of payment requires bank statements or vouchers signed by the employee.
  • The burden of proving days worked and not paid lies with the claimant, while the burden of proving payment for days worked lies with the respondent.
  • A claim that is pleaded but not proved cannot sustain an award; the claimant must specify the period and particulars of the entitlement.

Court orders

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  1. 1.That the claimants are entitled, in addition to what was calculated by the labour officer, to payment of their salaries with effect from June 2018 to July 27, 2018, to be agreed upon by the parties
  2. 2.That if not agreed upon, the parties to submit to this court their calculation for adoption and consideration
  3. 3.Costs in the cause

Authorities

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Cases cited (7)

  • Joseph Ouko Lwambe v Royal Garment Industries EPZ Limited
    [2018] eKLR
  • Republic v Commissioner of Domestic Taxes Ex parte Sony Holdings Limited
    [2019] eKLR
  • Independent Electoral and Boundaries Commission & another v Stephen Mutinda Mule & 3 others
    [2014] eKLR
  • Malawi Railways Ltd v Nyasulu
    [1998] MWSC 3
  • Adetoun Oladeji (Nig) Ltd v Nigeria Breweries PLC
    S.C. 91/2002
  • Elizabeth O Odhiambo v South Nyanza Sugar Co. Limited
    [2019] eKLR
  • Kenya Power & Lighting Company Limited v County Government of Nairobi & Attorney General
    [2017] eKLR
Jurisdiction invoked
Article 162(2)(a) of the Constitution (Employment and Labour Relations Court) - original jurisdiction over employment and labour relations claims

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, "Kenya Building Consruction, Timber and Furniture Industries Employees Union v Timsales Limited (Employment and Labour Relations Cause E029, E030 & E031 of 2021 (Consolidated)) [2023] KEELRC 2351 (KLR)", Case Analysis (2023). Cause 56 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2351/eng@2023-10-05

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