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ELRCDismissedMemorandum of Claim dated 24th November 2016· [2023] KEELRC 2688 (KLR)

Nguna v Hoggers Limited (Employment and Labour Relations Cause 2457 of 2016) [2023] KEELRC 2688 (KLR)

Employment and Labour Relations Court
27 October 2023
1,636 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 dismissed a rider's medical retirement claim, holding that a freely signed discharge voucher is a complete contract barring future claims.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a motorcycle delivery rider from 1st April 2000, alleged that the physical posture of riding caused a back condition, and that he and the Respondent agreed he would retire on medical grounds with compensation and terminal benefits. He gave notice of retirement on 11th March 2016 effective 11th April 2016, but the Respondent refused to pay compensation and terminal benefits beyond a send-off package of four months' salary and dues for days worked, leave and public holidays, against which he signed a discharge/indemnity voucher dated 10th June 2016. The Respondent, which tendered no evidence and filed no submissions, contended the retirement was voluntary, that the illness was not occupational per the medical report, and that the discharge voucher settled all dues in full and final settlement. The court framed one issue: whether the retirement on medical grounds was lawful and fair and whether the Claimant was entitled to the reliefs sought. It found the retirement notice was drafted by the Claimant himself, showing voluntary retirement with no evidence of an agreement to compensate. The medical report disclosed no occupational condition. Following Ephraim Gaitho Githongori v Timaflor Limited and Coastal Bottlers Limited v Kimathi Mithika, the court held that the freely signed discharge voucher constituted a complete contract discharging the Respondent. Section 40 of the Employment Act, providing for severance, was inapplicable absent redundancy. The claim was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether the Claimant's retirement on medical grounds was agreed with the Respondent and entitled him to compensation

Holding

The retirement was voluntary; the Claimant drafted his own retirement notice and there was no evidence of an agreement to compensate him upon retirement.

Reasoning

The court noted the notice of retirement was drafted by the Claimant himself and addressed to the Respondent informing it of his intention to retire, showing he voluntarily retired. No evidence linked the retirement to the Respondent or established any agreement to compensate him upon retirement. The medical report showed no occupational illness.

p. 2
02

Whether the illness was occasioned by the Claimant's occupation

Holding

The medical report from Avenue Healthcare did not disclose any occupational condition attributable to the work as a delivery rider.

Reasoning

The court perused the medical report filed by the Respondent and found no express diagnosis of a specific condition; the Claimant had been unwell severally and each occasion he was treated and given medication. His assertion that the work caused his sickness therefore failed.

p. 2
03

Effect of the discharge/indemnity voucher signed by the Claimant

Holding

By voluntarily signing the discharge voucher the Claimant entered into a binding contract discharging the Respondent from any further claims.

Reasoning

Relying on Ephraim Gaitho Githongori v Timaflor Limited and the Court of Appeal in Coastal Bottlers Limited v Kimathi Mithika, the court held that execution of a discharge voucher free of misrepresentation, fraud or coercion constitutes a complete contract. The Claimant did not plead that he was forced to sign it, so the Respondent was fully discharged.

p. 4
04

Whether the Claimant was entitled to severance pay

Holding

No severance pay was payable as the Claimant retired voluntarily and was not declared redundant.

Reasoning

Severance pay under section 40 of the Employment Act attaches to redundancy. The Claimant's retirement on medical grounds was voluntary and did not fall within section 40, hence he could not claim severance pay.

p. 4

Legal principles established

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  • Execution of a discharge voucher freely signed, without misrepresentation, fraud or coercion, constitutes a complete contract that discharges the employer from any further claims by the employee.
  • Severance pay under section 40 of the Employment Act is only payable on redundancy, not on voluntary retirement.

Court orders

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  1. 1.The claim is dismissed
  2. 2.Each party will meet their respective costs of the suit

Authorities

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Legislation

  • Employment Actsection 40
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure Act (Chapter 21 of the Laws of Kenya)Section 1B

Cases cited (6)

  • Ephraim Gaitho Githongori v Timaflor Limited
    [2018] eKLR
  • Coastal Bottlers Limited v Kimathi Mithika
    [2018] eKLR
  • Jane Njeri Wanyoike & 23 Others v Pan Africa Insurance Company Limited & 2 Others
  • Trinity Prime Investment Limited v Lion of Kenya Insurance Company Limited
    [2015] eKLR
  • Damondar Jihabhai & Co Ltd and another v Eustace Sisal Estates Ltd
    [1967] EA 153
  • Globe Motors Inc & Others v TRW Lucas Electric Steering Ltd & Others
Jurisdiction invoked
Employment and Labour Relations Court 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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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Nguna v Hoggers Limited (Employment and Labour Relations Cause 2457 of 2016) [2023] KEELRC 2688 (KLR)", Case Analysis (2023). Memorandum of Claim dated 24th November 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2688/eng@2023-10-27

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