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ELRCPartially AllowedMemorandum of Claim dated 4th July 2023· [2024] KEELRC 2521 (KLR)

Owino v Gems and Industrial Minerals Limited (Cause E017 of 2023) [2024] KEELRC 2521 (KLR)

Employment and Labour Relations Court
18 October 2024
3,740 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 awarded an employee nearly Kshs 1 million in unpaid dues, but cut his claim because he stopped showing up to work.

What this practically means

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Executive summary

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The claimant, employed as a Mining Engineer from January 2021 until his contract lapsed in April 2023 at a gross monthly salary, sued for unpaid salary, leave, service pay, car hire, airtime/internet, operational refunds and a certificate of service. The respondent denied liability, alleging the claimant took all his leave, and counterclaimed for losses arising from failure to meet a production projection of 5000 metric tons, borehole drilling said to have been done on private land and at a short depth, and transfer of a motor vehicle. The court framed two issues: entitlement under the claim and entitlement under the counter-claim. On the claim, the court found a prima facie case for unpaid salary but held the respondent proved on a balance of probability that the claimant absconded from October 2022, awarding salary only up to September 2022 (Kshs 664,188). House allowance was declined because the contract was on gross salary and housing had been provided. Airtime/internet and operational expense claims failed for want of receipts. Service pay was limited to one year (Kshs 75,000) and leave was granted pro rata (Kshs 123,750). Car hire was partially allowed at Kshs 135,000 for three months. The certificate of service was granted. The counter-claim was dismissed entirely: the claimant was not solely to blame for missed production targets, there was no obligation to refund capital, and the borehole allegations lacked proof, with the drilling contract being between the respondent and the driller. Judgment was entered for the claimant totaling Kshs 997,938 less statutory deductions, plus costs and interest at court rates from filing.

Key legal issues

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01

Unpaid salary claim

Holding

Claimant entitled to unpaid salary only up to September 2022 (Kshs 664,188); salary from October 2022 declined because he absconded

Reasoning

The court compared the parties' payment schedules and found a prima facie case for the salary claim up to September 2022. However, the respondent proved on a balance of probability that the claimant absconded from October 2022, evidenced by a 12-day break in August, sporadic attendance in September and cessation of attendance in October. The claimed reason was a toxic work environment after a new officer took over his roles.

p. 5
02

House allowance

Holding

Claim declined; gross salary contract and provision of housing discharged any duty

Reasoning

Clause 5 of the contract provided a gross monthly salary of Kshs 150,000. The claimant admitted being allocated a house but left due to discomfort. Section 31 of the Employment Act obliges the employer to provide reasonable housing or pay house allowance; paying a gross salary covering allowances satisfied this duty. The house was a gratuitous benefit.

p. 6
03

Service pay and annual leave

Holding

Service pay granted for one year only (Kshs 75,000); leave granted pro rata (Kshs 123,750)

Reasoning

The claimant served 21 months, not two complete years, so service pay was limited to 15 days' pay for one year. Leave was computed at 1.75 days per month under section 28 of the Employment Act, totaling 36.75 days less the 12 days taken in August 2022, leaving 24.75 days payable.

p. 6
04

Car hire claim

Holding

Partially allowed; Kshs 135,000 awarded for three months only

Reasoning

There was no enforceable agreement for hire of the claimant's own car at Kshs 45,000 per month; the rate was unilaterally fixed and the ownership undisclosed. However, the respondent consented to and paid car hire for February–May 2022, so only June, July and September 2022 were valid claims.

p. 6
05

Counter-claim for failed production projections and borehole

Holding

Counter-claim dismissed entirely

Reasoning

The court found the claimant was not solely to blame for failing to meet the 5000 metric ton target; the respondent failed to fund the project adequately and to implement geological assessment reports. There was no evidence of an agreement to refund capital. The borehole allegations (denied community access, marriage to landowner's daughter, short depth) lacked proof, and the drilling contract was with Simba Drilling Company, not the claimant.

p. 7

Legal principles established

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  • A gross or consolidated salary includes basic salary and house allowance, and an employer paying gross salary is not separately liable for house allowance
  • Annual leave accrues at 1.75 days per month under section 28 of the Employment Act
  • An employee who absconds work forfeits salary for the period of absence

Court orders

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  1. 1.Unpaid salary of Kshs 664,188.00 awarded to the claimant
  2. 2.Leave of Kshs 123,750.00 awarded to the claimant
  3. 3.Car hire of Kshs 135,000.00 awarded to the claimant
  4. 4.Service pay of Kshs 75,000.00 awarded to the claimant (total Kshs 997,938.00, less statutory deductions)
  5. 5.Costs of the suit plus interest at court rates from the date of filing suit awarded to the claimant
  6. 6.Certificate of service awarded to the claimant
  7. 7.Counter-claim dismissed in its entirety

Authorities

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Legislation

  • Employment Actsection 28(1)
  • Employment Actsection 28
  • Employment Act, 2007section 35(5) and (6)
  • Employment Actsections 20 and 21
  • Employment Act, 2007section 31
  • Employment Actsection 51
  • Evidence Act
  • ELRC Procedure RulesRule 28(3)

Cases cited (10)

  • Nduku v Osteria Group (Kenya) Limited
    (Cause E002 of 2002) (2023) KEELRC 2699 (KLR) (27 October 2023)
  • Peter Ngunjiri Kariuki v BOM Magomano Secondary School
    (2022) eKLR
  • Martin Ireri Ndwiga v Olerai Management Company
    (2017) eKLR
  • Joab Ashitiba Hashon v Samaritan Medical Services
    (2017) eKLR
  • Joshua Lihanda v Outdoor Occasions Limited
    (2014) eKLR
  • Stephen Miheso v Kaimosi Tea Estate Ltd
    (2024) eKLR
  • Joseph Sani Orina v Hiprora Business Solution (EA) Limited
    (2017) eKLR
  • Evans Gato Orina v Aggreko International Project
    (2019) eKLR
  • Postal Corporation of Kenya v Andrew K Tanui
    (2019) eKLR
  • Charity Wambui Muriuki v M/s Total Security Surveillance Ltd
    (2017) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; ELRC Procedure Rules)

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, "Owino v Gems and Industrial Minerals Limited (Cause E017 of 2023) [2024] KEELRC 2521 (KLR)", Case Analysis (2024). Memorandum of Claim dated 4th July 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2521/eng@2024-10-18

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