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ELRCPartially AllowedELRC Appeal No E016 OF 2023· [2024] KEELRC 1685 (KLR)

Board of Management Milo Boys High School v Wakhungu (Employment and Labour Relations Appeal E015 of 2023) [2024] KEELRC 1685 (KLR)

Employment and Labour Relations Court
26 June 2024
2,712 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed an employer cannot pay below the legal minimum wage and must keep employment records, awarding a cook over KShs 458,000.

What this practically means

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Executive summary

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This was a first appeal to the Employment and Labour Relations Court at Bungoma against the judgment of P.Y. Kulecho, PM in Webuye SPMC ELRC No E005 of 2021, in which Margaret Nafula Wakhungu, a cook at BOM Milo Friends Boys High School, was awarded Kshs 583,208 comprising salary arrears, rest days pay, overtime and leave pay. The school appealed against the awards on the basis that the claimant earned Kshs 7,000 with no arrears, enjoyed rest days and took leave during school holidays, and that the overtime award was manifestly excessive. Guided by Selle v Associated Motor Boat Co. Ltd, the Court re-evaluated the evidence. It upheld the underpayment award of Kshs 219,709, holding that section 26 of the Employment Act makes Regulation of Wages Order terms basic minimum conditions that a contract of service cannot override. It upheld the overtime award of Kshs 196,635, finding the appellant's own witness admitted the claimant worked overtime without pay. The leave award of Kshs 42,016 was upheld because the employer, the custodian of records under section 74, failed to produce leave forms. However, the Court found the claimant was a cook, not a cateress, and that it was more probable than not she received her rest days; the Kshs 124,848 rest days award was set aside. The trial judgment was set aside and substituted with judgment of Kshs 458,360 plus interest at court rate and costs of the suit; each party was ordered to bear its own costs of the appeal.

Key legal issues

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01

Whether the Respondent was underpaid during employment with the Appellant

Holding

The claimant was a cook entitled to the minimum wage under the Regulation of Wages Order 2018; the contract rate could not override statutory minimum wages; the underpayment award of Kshs 219,709 was upheld

Reasoning

The claimant was employed as a kitchen hand/cook at Kshs 6,000, later Kshs 7,000, contrary to the applicable Regulation of Wages Order of 2018 for an employer based in Webuye Municipality. Section 26 of the Employment Act makes regulated wages basic minimum conditions that contractual terms cannot displace; more favourable terms prevail. The Court therefore upheld the trial magistrate's award of three years' underpayment.

p. 4
02

Whether the award of overtime of Kshs 196,635 was justified

Holding

The appellant's own witness admitted the claimant worked overtime without pay; the award was upheld

Reasoning

The claimant testified she worked from 5.00 am to 8.00 pm without overtime pay, and the adopted defence witness confirmed cooks reported by 5.00 am, left at 5.30 pm and never received overtime. This amounted to an admission, so there was no misapprehension of the evidence by the trial court and no basis to disturb the award.

p. 5
03

Whether the award of Kshs 124,848 for rest days was justified

Holding

The award was set aside; it was more probable than not that the claimant, as a cook, got her rest days

Reasoning

The claimant's cateress claim was unfounded since evidence showed she was a cook. The defence witness testified that the school had five cooks and a cateress and that cooks had a day off. On a balance of probabilities the court found the respondent got her rest days, and the appeal succeeded on this head.

p. 5
04

Whether the award of Kshs 42,016 leave pay was justified

Holding

Upheld; absent contrary evidence, the court found the respondent was not accorded annual leave, the employer having failed to produce leave records

Reasoning

The claimant testified she was not permitted to take leave. The defence witness admitted leave forms existed but none were produced. Section 74 of the Employment Act obliges employers to keep records of annual leave entitlement and days taken under section 28. As custodian of employee records, the employer's failure to substantiate leave taken meant the trial court's holding stood.

p. 6

Legal principles established

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  • A first appellate court must reconsider and re-evaluate the evidence and draw its own conclusions, bearing in mind it has neither seen nor heard the witnesses
  • Regulated minimum wages are basic minimum terms that a contract of employment cannot override; where Regulation of Wages Order terms are more favourable, they apply
  • The employer is the custodian of employee records and must keep written records including annual leave entitlement under section 74 of the Employment Act

Court orders

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  1. 1.Judgment of the Honourable P.Y. Kulecho, PM delivered on 29/08/2022 in Webuye SPMC ELRC No E005 of 2021 set aside and substituted
  2. 2.Judgment entered for the Claimant as against the Respondent: salary arrears of Kshs 219,709
  3. 3.Overtime payment of Kshs 196,635
  4. 4.Leave pay in lieu of Kshs 42,016/-
  5. 5.Total award of Kshs 458,360 payable with interest at Court rate until payment in full from the date of judgment plus costs of the suit
  6. 6.Each party to bear its costs in the appeal

Authorities

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Legislation

  • Employment ActSection 26
  • Employment ActSection 28
  • Employment ActSection 74(1)(f)
  • Regulation of Wages Order2018

Cases cited (1)

  • Selle & another v Associated Motor Boat Co. Ltd & others
    (1948) EA 123
On appeal from
Senior Principal Magistrate's Court, Webuye
Webuye SPMC ELRC No E005 of 2021
Jurisdiction invoked
First appellate jurisdiction over the subordinate court in employment and labour relations matters

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Board of Management Milo Boys High School v Wakhungu (Employment and Labour Relations Appeal E015 of 2023) [2024] KEELRC 1685 (KLR)", Case Analysis (2024). ELRC Appeal No E016 OF 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1685/eng@2024-06-26

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