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ELRCPartially AllowedNot stated in the judgment· [2017] KEELRC 1980 (KLR)

Daniel Mwanje Lihanda v Eldochem Limited [2017] KEELRC 1980 (KLR)

Employment and Labour Relations Court
3 November 2017
687 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court awarded a former employee house allowance of 15% of his basic wage but dismissed overtime and leave claims for lack of evidence.

What this practically means

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Executive summary

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This was a first-instance employment cause before the Employment and Labour Relations Court at Eldoret, decided by Radido Stephen Judge on 3 November 2017, following testimony on 30 October 2017 and submissions filed by both parties. The Cause was not about unfair termination - the Claimant had resigned for personal reasons - but about breach of contract relating to employment entitlements. The Court condensed the pleaded issues into five: competence of the Cause, overtime, paternity/pro-rated leave, house allowance, and remedies. On competence, the Court rejected the Respondent's suggestion that its jurisdiction was confined to trade union disputes, holding that jurisdiction flowed from section 87 of the Employment Act, 2007 and section 12(1)(a) of the Employment and Labour Relations Court Act. The overtime claim failed because the Claimant did not prove the contractually agreed or statutorily prescribed working hours or the applicable Regulation of Wages Order. Paternity leave and pro-rated annual leave claims failed for want of evidential foundation, the Claimant having not disclosed the dates or details of his children nor elaborated his pleaded eight months' leave entitlement at trial; the Court noted that had a foundation been laid, the Respondent would have been expected to produce employment records. The house allowance claim succeeded: under section 31 of the Employment Act, the contract and pay slips showed no consolidated remuneration or housing element, so the Claimant was awarded 15% of the basic wage, totalling Kshs 231,750/- over 103 months of service at a constant salary of Kshs 15,000/-. The other heads of relief were dismissed, and the Claimant received costs on half scale.

Key legal issues

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01

Competence of the Cause / jurisdiction

Holding

The Cause was competent; ELRC jurisdiction is not confined to trade union disputes

Reasoning

The Respondent suggested the Court's jurisdiction was restricted to trade union disputes. The Court rejected this as misguided and legally misplaced, grounding jurisdiction in section 87 of the Employment Act, 2007 and section 12(1)(a) of the Employment and Labour Relations Court Act, which confer jurisdiction over individual employment and breach of contract disputes.

p. 1
02

Overtime

Holding

Overtime claim failed for want of proof of applicable working hours

Reasoning

The Claimant testified he worked from 9.00am to beyond 6.00pm but never disclosed the contractually agreed working hours or the prescribed hours in the industry. Different Regulation of Wages Orders prescribe different hours; without evidence of the applicable Order or a contractual agreement, the Court could not find that unpaid overtime was worked.

p. 2
03

Paternity leave and pro-rated leave

Holding

Both heads failed for lack of evidential foundation

Reasoning

Paternity leave becomes due when a male employee gets a baby, but the Claimant did not disclose when the babies were born, their details, or that he sought and was denied paternity leave. On pro-rated leave, although 8 months equivalent was pleaded, no reference was made to it in testimony; had a foundation been laid, the Respondent would have been expected to produce employment records.

p. 2
04

House allowance

Holding

Claim succeeded; remuneration did not include house allowance and 15% of basic wage awarded

Reasoning

Under section 31 of the Employment Act, 2007, where accommodation is not provided the contract should specify how much remuneration is for accommodation unless it is expressed as consolidated. Neither the contract nor the pay slips indicated consolidation or a house allowance element, so the Court found the Claimant entitled to at least 15% of the basic wage: Kshs 231,750/- for 103 months on a constant salary of Kshs 15,000/-.

p. 2

Legal principles established

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  • The ELRC's jurisdiction is not restricted to disputes involving trade unions
  • Where an employer does not provide accommodation and the contract is silent on consolidation, the employee is entitled to house allowance of at least 15% of the basic wage
  • A claimant bears the evidential burden of laying a foundation for each head of claim; only then is the employer expected to produce employment records

Court orders

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  1. 1.Award of Kshs 231,750/- to the Claimant as house allowance
  2. 2.Dismissal of the other heads of relief
  3. 3.Claimant to have costs on half scale
Jurisdiction invoked
Section 12(1)(a) of the Employment and Labour Relations Court Act and section 87 of the Employment Act, 2007

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, "Daniel Mwanje Lihanda v Eldochem Limited [2017] KEELRC 1980 (KLR)", Case Analysis (2017). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2017/1980/eng@2017-11-03

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