Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedEmployment and Labour Relations Court Claim dated 8th December 2020 (number not stated in judgment)· [2024] KEELRC 615 (KLR)

Ngigi v Kenya National Union of Teachers (KNUT); Teachers Service Commission (TSC) (Interested Party) (Employment and Labour Relations Cause E6459 of 2020) [2024] KEELRC 615 (KLR)

Employment and Labour Relations Court of Kenya
14 March 2024
2,365 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

#

Kenya's Employment Court awarded a former KNUT branch secretary Kshs 1.6 million for unremitted pension and unpaid salary, but refused gratuity claims unsupported by a signed contract.

What this practically means

#

Executive summary

#
The Claimant, a teacher employed by the Teachers Service Commission (Interested Party) from 1989, joined the Kenya National Union of Teachers (Respondent) and was elected Executive Branch Secretary, Thika branch in September 2013. He was released on leave of absence effective 1 November 2013 to serve the union full-time, on terms that the union would pay his salary, remit 31% of his salary to the Director of Pensions through the TSC to sustain his pension, and remit 2% to KRA for the Widows and Children's Pension Scheme. He took early retirement effective 1 April 2020 and discovered the union had deducted but failed to remit the pension and WCPS contributions, had not paid his service gratuity, terminal benefits, unpaid salaries for July, August and December 2019, or leave pay. The Respondent neither filed a response nor appeared despite service, so the Claimant's evidence went unchallenged. The court, citing authorities on gratuity and uncontroverted evidence, held that gratuity and terminal benefits were not proved because the union's Remuneration Packages document was unsigned and unauthentic, but found the union liable for the unremitted pension and WCPS contributions of Kshs 996,037/50 and the unpaid salaries. The claim was partially allowed: total award of Kshs 1,599,280/50 plus interest at court rates from filing until full payment, with costs to the Claimant. Judgment was delivered virtually on 14 March 2024 by Mwaure, J.

Key legal issues

#
01

Whether the Respondent was liable for unremitted pension (31%) and WCPS (2%) contributions deducted from the Claimant's salary

Holding

The Respondent deducted the contributions but failed to remit them; the Claimant was awarded Kshs 996,037/50

Reasoning

The payslips showed deductions of 31% allegedly for the Director of Pensions. The Interested Party's letter of 17.09.2020 showed only Kshs 20,473.20 was remitted, and it demanded the balance of Kshs 996,037.50 to process retirement benefits. The Respondent adduced no contrary evidence, so the claimant's evidence stood unchallenged and liability was established.

p. 4
02

Whether the Claimant was entitled to service gratuity

Holding

Declined - gratuity is not automatic and the claimant's supporting document was unsigned and unauthentic

Reasoning

Gratuity is payable only where contract, collective agreement or practice provides for it. Although the Respondent's Remuneration Packages note provided 31% payable after every 2½ years, that document was unsigned and the court held it was not authentic and could not be relied upon to calculate gratuity or terminal benefits.

p. 5
03

Whether the Claimant was entitled to unpaid salaries for July, August and December 2019

Holding

Granted, as the Respondent tendered no evidence of payment

Reasoning

An employee is entitled to pay for work done in the absence of contrary evidence. The respondent neither filed a response nor appeared, so no evidence of payment of the salaries was tendered; the claim for Ksh. 603,243 formed part of the total award of Kshs 1,599,280/50 with interest.

p. 5

Legal principles established

#
  • The Employment Act does not make payment of gratuity mandatory; gratuity must be a term of contract, collective agreement or employer practice
  • Uncontroverted evidence of a claimant, where a defendant tenders no evidence, remains unchallenged but must still be proved on a balance of probability

Court orders

#
  1. 1.Award of unremitted pension and WCPS contribution of Kshs 996,037/50
  2. 2.Refusal of service gratuity as not proved/provided
  3. 3.Refusal of terminal benefits and leave days as based on an unauthentic unsigned document
  4. 4.Award of unpaid salary for July, August and December 2019
  5. 5.Total award of Kshs 1,599,280/50 plus interest at court rates from the date of filing suit until full payment
  6. 6.Costs of the suit awarded to the Claimant

Authorities

#

Legislation

  • Employment Act2007
  • Pensions ActWidows and Children's Pension Scheme (WCPS)
  • Code of Regulations for Teachersearly retirement
  • Evidence ActSections 107 and 108
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B

Cases cited (8)

  • Nelson Keshei v Narok County Government & another
    [2019] eKLR
  • Peter Ngigi & Another (suing as legal representative of the Estate of Joan Wambui Ngigi) v Thomas Ondiki Oduor & Another
    2019 eKLR
  • Shaneebal Limited v County Government of Machakos
    [2018] eKLR
  • Trust Bank Limited v Paramount Universal Bank Limited & 2 Others
    Nairobi (Milimani) HCCS No. 1243 of 2001
  • Janet Kaphiphe Ouma & Another v Marie Stopes International (Kenya)
    Kisumu HCCC No. 68 of 2007
  • Edward Muriga Through Stanley Muriga v Nathaniel D. Schulter
    Civil Appeal No. 23 of 1997
  • Interchemie EA Limited v Nakuru Veterinary Centre Limited
    Nairobi (Milimani) HCCC No. 165B of 2000
  • Kenya Power and Lighting Company Limited v Nathan Karanja Gachoka & another
    [2016] eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Employment and Labour Relations Court

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Ngigi v Kenya National Union of Teachers (KNUT); Teachers Service Commission (TSC) (Interested Party) (Employment and Labour Relations Cause E6459 of 2020) [2024] KEELRC 615 (KLR)", Case Analysis (2024). Employment and Labour Relations Court Claim dated 8th December 2020 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/615/eng@2024-03-14

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