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ELRCPartially AllowedCause filed 27 March 2024 (number not stated in judgment)· [2025] KEELRC 688 (KLR)

Njogo v Kenya Institute of Management (Cause E236 of 2024) [2025] KEELRC 688 (KLR)

Employment and Labour Relations Court
6 March 2025
RSRadido Stephen
1,544 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, an employee of 14 years, tendered a letter headed 'Premature Retirement' on 22 August 2023, giving notice effective 31 August 2023 and seeking severance pay, salary arrears, leave allowance and unremitted pension. The Respondent's Executive Director accepted the notification by Internal Memo dated 5 September 2023 under clause 12.6 of the Human Resources Policies and Procedures Manual, undertaking to pay salary to 20 September 2023, one day of unutilised leave, severance pay at two weeks per completed year up to ten years, and pension contributions per the Scheme rules. The benefits were not paid, prompting this Cause. The court held that resignation is undefined in the Employment Act and must be construed from the contract; the Manual recognised only Early Retirement and Pre-Mature Retirement as employee-initiated separation. Since the Claimant's letter referenced Pre-Mature Retirement and the Executive Director accepted it under clause 12.6 with an express promise of benefits, the separation was a Pre-Mature Retirement. The Executive Director was not called to testify, and the Respondent's witness could not vary the memo orally. The court awarded Kshs 806,000/- comprising severance pay of Kshs 650,000/-, September 2023 salary of Kshs 86,667/-, accrued leave of Kshs 4,333/- and leave allowance of Kshs 65,000/-, with interest at court rates from filing until payment in full. Claims for salary arrears for 2022 periods and loan deductions failed for want of evidential proof, and costs were denied to the Claimant for late filing of submissions.

Key legal issues

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01

Whether the Claimant's separation was a resignation or a Pre-Mature Retirement

Holding

It was a Pre-Mature Retirement under clause 12.6 of the HR Manual, and the Executive Director's written acceptance promising benefits, including severance pay, bound the Respondent

Reasoning

The Employment Act does not define resignation, so the contract and the incorporated HR Manual govern. The Manual recognised only Early Retirement and Pre-Mature Retirement as modes of separation at the employee's request. The Claimant's letter referenced Pre-Mature Retirement and chapter 12, and the Executive Director accepted it under clause 12.6, setting out payable benefits including severance. He was not called to testify, and the Respondent's witness could not vary the memo orally.

p. 5
02

Entitlement to severance pay, September 2023 salary, accrued leave and leave allowance

Holding

All four heads awarded: severance Kshs 650,000/- (uncontroverted), September salary Kshs 86,667/- (admitted in re-examination), accrued leave Kshs 4,333/- and leave allowance Kshs 65,000/- (employer failed to produce leave records)

Reasoning

The Respondent did not interrogate the severance computation. Its witness admitted part of September 2023 salary was owed. Section 10(3) of the Employment Act obliges the employer as custodian of records to produce leave records; failing that, the court accepts the Claimant's testimony on accrued leave and clause 7.4 of the Manual supports a 50% basic salary leave allowance for 2022/2023.

p. 4

Legal principles established

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  • Where an employer's authorised officer makes a written promise of separation benefits under a policy manual, oral testimony cannot vary those written terms; failure to call the author of the memo without explanation supports the employee's case
  • As custodian of employment records, an employer must produce leave records under section 10(3) of the Employment Act, 2007; failure allows the employee's leave claims to be allowed

Court orders

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  1. 1.Declared that the Claimant resigned through Pre-Mature Retirement in terms of clause 12.6 of the Human Resources Policies and Procedures Manual
  2. 2.Awarded severance pay of Kshs 650,000/-
  3. 3.Awarded September 2023 salary of Kshs 86,667/-
  4. 4.Awarded accrued leave of Kshs 4,333/-
  5. 5.Awarded leave allowance of Kshs 65,000/-
  6. 6.Total award of Kshs 806,000/- with interest at court rates from the date of filing suit until payment in full
  7. 7.Costs denied to the Claimant

Authorities

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Legislation

  • Employment Actsection 10(3) and section 10(3)(a)(i)
  • Employment Actgeneral law of employment (resignation undefined)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007); not expressly stated in the judgment

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, "Njogo v Kenya Institute of Management (Cause E236 of 2024) [2025] KEELRC 688 (KLR)", Case Analysis (2025). Cause filed 27 March 2024 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/688/eng@2025-03-06

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