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ELRCPartially AllowedMemorandum of Appeal dated 9th January, 2024· [2024] KEELRC 2603 (KLR)

Del Monte Kenya Limited v Kyengo (Appeal E007 of 2024) [2024] KEELRC 2603 (KLR)

Employment and Labour Relations Court (Appeals Division)
25 October 2024
2,471 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 cut an employee's award: service pay was scrapped and leave pay limited to three years, but unpaid salary stood because the employer had no proof of payment.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court (Appeals Division, Nairobi) against the judgment of Honourable P. Mutua (MR) (SPM) delivered on 13th December 2023, which entered judgment for the Claimant (Respondent before this court) of Kshs 44,193/- salary arrears, Kshs 220,965/- service pay and Kshs 441,930/- unpaid leave, with costs and interests. The trial court had found the dismissal fair but awarded terminal dues. The appeal was disposed of by written submissions. The court framed two issues: whether the trial magistrate erred in awarding salary arrears, service pay and unpaid leave, and whether he erred in awarding costs and interests. On salary arrears, the court upheld the award, holding the employer, as custodian of employment records, bore the burden of proving payment of February 2021 salary and produced no pay slip or receipts. On service pay, the court set aside the award, holding the Respondent was an NSSF member and subject to a CBA whose section 8(h) excluded service pay for employees dismissed for gross misconduct, engaging sections 35(6)(d) and 36(5)(b) of the Employment Act. On leave, the court reduced the award from ten years to three years (Kshs 132,579/-), applying section 90 of the Employment Act's three-year limitation, while confirming the employer's evidential burden to produce leave records. On costs, the court did not fault the trial court's discretion, costs following the event under section 27 of the Civil Procedure Act and section 12(4) of the ELRC Act. The appeal partially succeeded; each party bears own costs of the appeal.

Key legal issues

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01

Award of one month's salary arrears

Holding

Trial court's award upheld; the Appellant produced no evidence of payment for February 2021.

Reasoning

The Respondent worked in February 2021 but the last pay slip was for January 2021. The employer, as custodian of employment records, should have produced a pay slip or payment receipts to prove payment. Having failed to do so, the award of one month's salary arrears could not be disturbed and the ground of appeal failed.

p. 4
02

Award of service pay

Holding

Trial court's award set aside; the Respondent was not entitled to service pay.

Reasoning

The Respondent was an NSSF member, which is an exception under section 35(6)(d) of the Employment Act. His employment letter subjected him to the CBA, whose section 8(h) excluded service pay for employees dismissed for gross misconduct, and the CBA service pay scheme was an exception under section 36(5)(b). He also ought to have produced NSSF statements to show non-remittance. The trial court erred in making the award.

p. 4
03

Award of unpaid leave for 10 years

Holding

Award reduced to leave for three years preceding filing of the suit, being Kshs. 132,579/-.

Reasoning

Leave is a statutory entitlement under section 28 of the Employment Act, but claims are limited to three years by section 90. The suit filed in February 2022 was within the limitation period, entitling the Respondent to only three years' untaken leave, not ten. The employer failed to produce leave records to rebut the claim.

p. 4
04

Award of costs and interests

Holding

Trial court's award of costs to the successful Respondent not faulted.

Reasoning

Under section 27 of the Civil Procedure Act costs follow the event unless the court otherwise orders, and section 12(4) of the Employment and Labour Relations Court Act confers discretion on costs. The suit was instituted because the Appellant failed to pay the Respondent his dues, so the trial court was justified in awarding costs to the successful party.

p. 5

Legal principles established

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  • Where an employment claim is governed by section 90 of the Employment Act, claims for untaken leave are limited to three years preceding the filing of the suit.
  • The employer, as custodian of employment records, bears the evidential burden of proving payment of salary or that leave was taken or paid for.

Court orders

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  1. 1.The award for service pay is set aside.
  2. 2.The award for untaken leave for 10 years is reduced from 10 years to three years being Kshs. 132,579/-
  3. 3.Costs and interests at the lower court maintained.
  4. 4.Each party shall bear their own costs of the Appeal.

Authorities

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Legislation

  • Employment Actsections 28, 35(6)(d), 36(5)(b), 44, 74, 90
  • Employment & Labour Relations Court Actsection 12(4)
  • Civil Procedure Actsection 27
  • Constitution of KenyaArticle 159(2)(c)
  • Collective Bargaining Agreement (referred to in the judgment)sections 8(h), 9(a)

Cases cited (7)

  • Monica Wanza v Roof Spec & Allied Works Co. Ltd
    (2021) eKLR
  • Peters v Sunday Post Limited
    (1958) EA 424
  • Selle & Another v Associated Motor Boat Co. Ltd & Another
    (1968) EA 123
  • Gitobu Imanyara & 2 others v Attorney General
    [2016] eKLR
  • Charles Muthusi Mutua v Kathi No Kakoka Services Limited
    [2022] eKLR
  • Cecilia Karuru Ngayu v Barclays Bank of Kenya & another
    [2016] eKLR
  • Party of Independent Candidate of Kenya & Another vs Mutula Kilonzo & 2 Others
    (2013) eKLR
On appeal from
Senior Principal Magistrate's Court (Honourable P. Mutua (MR) (SPM))
Jurisdiction invoked
First appellate jurisdiction over the trial magistrate's judgment in an employment claim

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Del Monte Kenya Limited v Kyengo (Appeal E007 of 2024) [2024] KEELRC 2603 (KLR)", Case Analysis (2024). Memorandum of Appeal dated 9th January, 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2603/eng@2024-10-25

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