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ELRCAllowedNot stated in judgment· [2024] KEELRC 2172 (KLR)

Miano v Kenya Institute of Management (Cause E172 of 2023) [2024] KEELRC 2172 (KLR)

Employment and Labour Relations Court
30 August 2024
JRJames Rika
414 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 ruled employers cannot stop paying terminal benefits due to financial hardship, awarding a former employee full payment plus interest and costs.

What this practically means

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Executive summary

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The Claimant, an Advocate of the High Court of Kenya, was employed by the Respondent as Legal Counsel/Company Secretary on a renewable three-year contract from 25th September 2018 at a monthly salary of Kshs. 220,000. She resigned on 6th May 2021 and the Respondent accepted the resignation on 10th May 2021. Terminal benefits were computed at Kshs. 1,832,300, a figure she did not dispute, and the Respondent paid by instalments before unilaterally stopping, leaving Kshs. 1,313,300 outstanding. The Respondent conceded the debt, citing financial constraints. The Claimant applied on 20th February 2024 for judgment on admission or striking out of the Statement of Response and Counterclaim. The court found the dispute unnecessary: the parties had disengaged consensually with no disagreement on the quantum of terminal benefits, the Claimant had accommodated staggered payments, and financial constraints could not justify denying a professional who rendered faithful service payment of her dues. The court emphasized that terminal benefits must be paid promptly upon separation to enable the employee plan for the future. Judgment was entered on admission for Kshs. 1,313,300, the Statement of Response and Counterclaim were struck out, costs were awarded to the Claimant, and interest at court rate was granted from the date of judgment until payment in full. The judgment was delivered electronically at Nairobi on 30th August 2024 by James Rika, Judge.

Key legal issues

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01

Liability for admitted unpaid terminal dues

Holding

Judgment on admission entered for Kshs. 1,313,300 as the Respondent conceded the debt

Reasoning

The parties disengaged consensually, terminal benefits were computed and not disputed, and the Claimant accepted instalments. The Respondent conceded the outstanding sum but blamed financial constraints. The court held that constraints cannot justify denying a professional who rendered faithful service payment of terminal dues, especially after granting time through staggered payments.

p. 2
02

Striking out of Statement of Response and Counterclaim

Holding

Both struck out as the defence disclosed no justification for non-payment

Reasoning

There was no dispute on the quantum of terminal benefits and no defence to the admitted debt; continuing the Response and Counterclaim would only prolong an unnecessary dispute.

p. 2

Legal principles established

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  • When an employee leaves employment, terminal benefits due must be paid promptly; financial constraints do not justify unilateral cessation of payment.

Court orders

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  1. 1.Judgment entered on admission in favour of the Claimant for the sum of Kshs. 1,313,300
  2. 2.The Statement of Response and Counterclaim struck out
  3. 3.Costs to the Claimant
  4. 4.Interest at court rate from the date of Judgment until payment in full
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Employment and Labour Relations Court

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, "Miano v Kenya Institute of Management (Cause E172 of 2023) [2024] KEELRC 2172 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2172/eng@2024-08-30

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