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ELRCPartially AllowedMemorandum of Claim dated 23rd May, 2024

Gichuki v Board of Management Gachatha High School (Employment and Labour Relations Cause E023 of 2024) [2025] KEELRC 231 (KLR)

Employment and Labour Relations Court
4 February 2025
975 words in judgment
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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, employed by the respondent from 4th June 1984 as a Bookkeeper, retired with effect from 22nd December 2022 upon attaining the retirement age of 60 on 1st June 2022, earning a basic salary of Kshs.18,947. She demanded her terminal benefits but the respondent refused to pay service gratuity, referring her instead to the NSSF. She contended this treatment was discriminatory, relying on evidence that a colleague who retired in 2017 was paid service gratuity, and on a Ministry of Education circular and a CBA between her trade union and the Ministry of Education. A conciliator appointed after a trade dispute was reported to the Labour Cabinet Secretary recommended payment of service gratuity for 38 years, house allowance and underpayment of salary; the respondent neither participated in conciliation nor complied with the recommendation. The respondent did not enter appearance or file any pleadings, and the claimant's facts were not controverted. The court framed a single issue: whether the claimant was entitled to the reliefs sought. It held she was entitled to service gratuity at the rate of one month's basic salary per year served based on the Ministry of Education circular dated 10th January 2005, entering judgment for Kshs.719,986, with costs at the lower court scale and interest from the date of filing suit, subject to statutory deductions. However, the claims for one month's salary in lieu of notice and terminal leave failed, the former because two months' notice was given, the latter for lack of particulars and evidential support.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the claimant is entitled to the reliefs sought in the claim

Key legal issues

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01

Entitlement to service gratuity upon retirement

Holding

The claimant, having served 38 years and retired at 60, was entitled to service gratuity of one month's basic salary per year served, totalling Kshs.719,986

Reasoning

The claimant's case was uncontroverted by pleading or evidence. The Ministry of Education circular dated 10th January 2005, issued under Ministerial Legal Notice No.263 of the Education Act Cap 211, provides that service gratuity is payable to employees who have worked ten years continuously and attained the qualifying age, computed as basic salary at retirement multiplied by years served and divided by 12. The respondent's reliance on NSSF was rejected as the circular confirmed gratuity entitlement.

p. 3
02

Claim for salary in lieu of notice

Holding

Dismissed because the claimant received about two months' notice of retirement

Reasoning

The court found on the uncontroverted material that the letter dated 21st October 2022 gave notice of retirement effective 22nd December 2022, being approximately two months' notice. Notice in lieu is only payable where no notice or inadequate notice was given; since proper notice was given, the claim for one month's salary in lieu of notice fails.

p. 2
03

Claim for terminal leave

Holding

Dismissed for lack of particulars and evidential support

Reasoning

The claimant did not particularise the terminal leave claim, produced no evidence supporting it, and did not anchor it on her contract of employment. Absent a contractual or other legal basis, the claim could not succeed and was accordingly rejected.

p. 2

Legal principles established

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  • Non-teaching staff in public secondary schools who have served continuously for at least ten years and attained the qualifying age are entitled to service gratuity computed at one month's basic salary for each year served, per the Ministry of Education circular

Court orders

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  1. 1.Judgment entered for the claimant for service gratuity of Kshs.18947 x 38 years = Kshs.719,986
  2. 2.Costs of the suit to the claimant at the Lower court scale
  3. 3.Interest at court rates on the award from the date of filing suit
  4. 4.The award is subject to statutory deductions

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the trade dispute referred to the Labour Cabinet Secretary and adjudicated after unsuccessful conciliation

Relief refused

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One month's salary in lieu of notice

The claimant was given about two months' prior notice of retirement, so the notice claim fails

p. 2

Terminal leave

The claim lacked particulars, was unsupported by evidence and was not anchored on the contract of employment

p. 2

Adoption of the conciliator's recommendation certificate

Not expressly adopted; the court instead independently assessed entitlement and awarded service gratuity only

Costs

Costs of the suit to the claimant at the Lower court scale

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Consequently, I find that the claimant is entitled to service gratuity and proceed to enter judgment for her as prayed being Kshs.18947 x 38 years =Kshs.719,986. She will also have costs at the Lower court scale and interest at court rates from the date of filing suit. The award is subject to statutory deductions.
p. 3Final orders - award of service gratuity, costs and interest
The above circular confirms that the claimant was entitled to service gratuity at the rate of one month’s basic salary for each year served.
p. 3Basis of service gratuity entitlement
The above facts were not controverted by pleading or rebutted by evidence.
p. 2Uncontroverted evidence

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, "Gichuki v Board of Management Gachatha High School (Employment and Labour Relations Cause E023 of 2024) [2025] KEELRC 231 (KLR)", Case Analysis (2025). Memorandum of Claim dated 23rd May, 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/231/eng@2025-02-04

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