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ELRCOtherNot stated in the excerpt provided· [2023] KEELRC 3059 (KLR)

Ngunjiri v Sony Trading Company Limited (Cause 770 of 2016) [2023] KEELRC 3059 (KLR)

Employment and Labour Relations Court
30 November 2023
418 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court refused an employer's bid to pay Kshs. 434,000 in salary arrears in tiny instalments, ruling salaries are legally protected and must be paid promptly.

What this practically means

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Executive summary

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The Employment and Labour Relations Court at Nairobi, presided over by James Rika, Judge, delivered judgment on 29th March 2023 awarding the Claimant Kshs. 434,000 with no order on costs. The Respondent, through an application amended on 24th May 2023 and supported by an affidavit of its Director James Gitonga, sought leave to liquidate the decretal sum by instalments of Kshs. 15,000 monthly, asserting it had already paid Kshs. 40,000. The Claimant opposed in a Replying Afidavit, noting his claim dated back to 2016, that his salary had been stopped between January and September 2015, and that instalments of Kshs. 15,000 would stretch payment over 53 months, attracting further interest on a decretal sum carrying interest from 30th September 2015. He instead proposed instalments of Kshs. 130,000, which the Respondent had not accepted. Parties agreed the application be determined by written submissions. The Court found that the Respondent's proposed mode of settlement would violate Section 17 of the Employment Act 2007, since salaries enjoy statutory protection and must be paid as and when they fall due, and the arrears arose over eight years earlier with adequate time to pay. The Claimant's counter-proposal was regarded as generous, left for the Respondent to take, leave, or renegotiate without the Court's aid. The application was declined with costs to the Claimant, by ruling dated 30th November 2023.

Key legal issues

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01

Whether instalment payment of a decretal sum comprising salary arrears is permissible

Holding

The application was declined because the proposed instalments would perpetuate violation of Section 17 of the Employment Act, which protects salaries

Reasoning

The court held that salaries are statutorily protected and must be paid as and when they fall due. The arrears arose in 2015, over eight years earlier, and the Respondent had adequate time to pay. Allowing instalments of Kshs. 15,000 monthly would stretch payment over 53 months and attract further interest, amounting to continuing violation of Section 17. The Claimant's counter-proposal of Kshs. 130,000 instalments was considered generous and left for the Respondent to accept, reject or renegotiate without the Court's aid.

p. 2

Legal principles established

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  • Salaries enjoy statutory protection under Section 17 of the Employment Act and must be paid as and when they fall due

Court orders

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  1. 1.The Respondent's Application dated 9th May 2023, amended on 24th May 2023, is declined
  2. 2.Costs to the Claimant
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the employment claim and post-judgment application; Employment Act 2007, Section 17

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, "Ngunjiri v Sony Trading Company Limited (Cause 770 of 2016) [2023] KEELRC 3059 (KLR)", Case Analysis (2023). Not stated in the excerpt provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3059/eng@2023-11-30

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