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ELRCPartially AllowedCause No 1191 of 2018· [2023] KEELRC 2454 (KLR)

Orodo v University of Nairobi (Cause 1191 of 2018) [2023] KEELRC 2454 (KLR)

Employment and Labour Relations Court
5 October 2023
2,903 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, a security guard employed by the University of Nairobi from 1/9/1989 until retirement on 30/6/2017, sued for terminal benefits: gratuity at 31% of basic salary for 28 years, payment for 104 admitted off days, basic underpayments, overtime from 2007, and uniform refunds, all allegedly owed under a 2013-2017 Collective Bargaining Agreement with KUDHEIHA. The claim was canvassed by consent on documentary evidence and written submissions. The court framed two issues: whether the terminal benefits were proved and who should bear costs. The court held that the CBA, once signed, became a term of the claimant's individual contract under Section 59(3) of the Labour Relations Act, and that gratuity is calculated under the contract applicable at separation for the entire period of service. The respondent therefore erred in computing gratuity at 28 days per completed year for 1/5/1992 to 30/6/2015; gratuity at 31% of basic salary was awarded for all 28 years (Kshs.2,047,681.44), less Kshs.313,673.35 already paid, subject to lawful taxation. The 104 off days were awarded (Kshs.153,712) as the respondent produced no evidence of payment of the admitted amount. Overtime was proved but limited by Section 90 of the Employment Act to three years before filing; only the period 13/7/2015 to 30/6/2017 was awarded, with computation to be filed within 30 days. The uniform refund claim failed for want of proof by receipts and limitation. Judgment was entered for the claimant with interest at court rates and costs following the event.

Key legal issues

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01

Gratuity computation for the full 28-year period of service

Holding

The respondent erred in computing gratuity at 28 days per completed year for the period 1/5/1992 to 30/6/2015; the CBA rate of 31% of basic salary applies to the entire period of service

Reasoning

The CBA 2013-2017, once signed, became part of the claimant's individual contract under Section 59(3) of the Labour Relations Act. Clause 40 on gratuity covers the entire period of service up to retirement. Gratuity is calculated under the contract/law applicable at separation for the whole service period, so the 31% rate applies to all 28 years, less amounts already paid.

p. 5
02

104 off days admitted but unpaid

Holding

Awarded as claimed since the respondent did not provide evidence of payment of the admitted amount

Reasoning

The respondent's witness asserted the claimant received payment for the 104 off days per a memo dated 29/5/2017, but no evidence of actual payment was produced. The claim was admitted and therefore proved, and the sum of Kshs.153,712 was awarded.

p. 6
03

Overtime claim from 2007

Holding

Overtime proved but recoverable only from 13/7/2015 to 30/6/2017 due to the three-year limitation under Section 90 of the Employment Act

Reasoning

It was not in dispute that overtime was worked and unpaid. However, Section 90 of the Employment Act limits such claims to three years from the accrual of the cause of action. The suit was filed on 13/7/2018, so overtime is payable only from 13/7/2015 to retirement; the earlier period is time barred.

p. 6
04

Uniform refund

Holding

Dismissed for want of proof and being largely time barred

Reasoning

Conflicting evidence existed on whether uniforms were free or purchased by the claimant. A refund claim is in the nature of special damages requiring specific proof such as receipts. No receipts were produced, and any claim predating 13/7/2015 was time barred given the 13/7/2018 filing date.

p. 7

Legal principles established

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  • Gratuity is calculated in terms of the contract/law applicable at the time of separation for the entire period of service
  • A collective bargaining agreement once signed becomes a term of individual contracts of employment under Section 59(3) of the Labour Relations Act

Court orders

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  1. 1.Gratuity calculated at 31% of the basic salary of 19,659 for the 28 completed years of service in the sum of Kshs.2,047,681.44, less gratuity already paid of Kshs.313,673.35, subject to lawful taxation
  2. 2.Kshs.153,712 in respect of 104 admitted off days
  3. 3.Overtime from 13/7/2015 to 30/6/2017 calculated at 7 hours x 6 days x 4 weeks x 184.75 hourly pay x 1.5, with computation to be filed within 30 days of judgment by the respondent failing which the claimant to file within 45 days
  4. 4.Interest at Court rates from date of judgment till payment in full
  5. 5.Costs to follow the event

Authorities

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Legislation

  • Employment ActSection 90
  • Labour Relations Act (No. 14 of 2007)Sections 59(1), 59(3)
  • Employment and Labour Relations Court Rules, 2016Rule 21

Cases cited (4)

  • H. Young & Company (E.A) Limited -vs- Javan Were Mbango
    [2016] eKLR
  • Ali Buule Isaack -vs- University of Nairobi
    Nairobi ELRC Appeal No. E015 of 2021
  • Alfred O. Amombo -vs- Lake Victoria North Water Service Board
    [2020] eKLR
  • Kenya Kazi Services Ltd. -vs- Dickson Onjwaya Wasike & 42 Others
    [2021] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act and Employment Act, 2007 (specific provision not stated in 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, "Orodo v University of Nairobi (Cause 1191 of 2018) [2023] KEELRC 2454 (KLR)", Case Analysis (2023). Cause No 1191 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2454/eng@2023-10-05

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