Africanus Isebe Etiat v Chemilil Sugar Co. Ltd [2016] KEELRC 1781 (KLR) | Redundancy | Esheria

Africanus Isebe Etiat v Chemilil Sugar Co. Ltd [2016] KEELRC 1781 (KLR)

Full Case Text

REPUBLIC OF KENYA

IN THE EMPLOYMENT & LABOUR RELATIONS COURT AT KISUMU

CAUSE NO. 41 OF 2013

(BEFORE HON. LADY JUSTICE MAUREEN ONYANGO)

AFRICANUS ISEBE ETIAT........................CLAIMANT

VRS

CHEMILIL SUGAR CO. LTD................RESPONDENT

JUDGMENT

By memorandum of claim dated 19th December, 2011 and filed on 9th January, 2013 the Claimant  seeks the following remedies

a)       Kshs. 589,152 as itemised at paragraph 6 above.

b)      Redundancy dues.

c)       Costs of the suit.

d)      Interest on a, b & c above.

The Claim  of Shs. 589,152 is made up of the  following

a) Three month pay in lieu of notice (90x414).............Kshs.37,260

b) Unpaid leave allowance (8x815)..............................Kshs.14,520

c) Unpaid leave (240x414)..........................................Kshs.111,780

d) Off days (144x414)..................................................Kshs.  59,616

e) Overtime (244x414).................................................Kshs.101,016

f) Severance pay (208x414)..........................................Kshs.  86,112

g) House Allowance (288x1863)..................................Kshs. 178,848

________________

TOTAL                Kshs.589,152

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The Respondent filed its memorandum of Defence  24th February, 2014.  In the Defence the Respondent avers that the Claimant was  a casual employee who worked intermittently as a sanitary attendant and the termination of his employment was in accordance with Section 35(1) (a) of the Employment Act.  the Respondent avers that the Claimant lodged a complaint with the Ministry of  Labour following which an agreement was reached to pay the Claimant Shs. 101,188. 90 made up as follows;

a)       Two weeks salary in lieu of notice.............................Kshs.    5796. 40

b)      86. 4 days accumulated leave days up to

30th  June, 2009. ...... ...................................................Kshs. 35,772. 20

c)       144 days accumulated off days since 1st June 2006     Kshs. 59,620. 30

__________________

Total                                         Kshs. 101,188. 90

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The Respondent denied owing the Claimant the sum of Shs. 589,152 and avers that the claim is an afterthought, frivolous and  vexatious as the Claimant has already been paid his  full terminal benefits.

The case was heard on 24th  June, 2015.  The Claimant testified on his behalf while Alfred Kiprop the respondent's training officer testified on its behalf.

The Facts as presented by the witnesses are not contested.

The claimant was employed by the Respondent on 2003 as a sanitary attendant.  He  worked continuously until 13th  July, 2009 when the Respondent outsourced the sanitary services.  The Claimant together with the other employees who lost their jobs  due to the retrenchment lodged a complaint with  the Ministry of Labour following which the Respondent agreed to pay the Claimant and the other employees who lost their jobs  2 weeks  pay in lieu of leave, accumulated leave and off days.  The Claimant was paid a  total of Shs. 101,188. 90.

The Claimant alleges that what he is claiming is the amount tabulated by the labour  Ministry of Labour while the respondent also claims what it paid is what was granted by the Ministry of Labour.  The Respondent has in addition agreed to pay severance pay but  the Claimant demands the full difference between what  it is claiming and what has been paid by the Respondent which  he considers  was  part payment.

The issues for determination set out   in the Claimant's   written submissions which  I adopt are whether or not  the Claimant  was a casual employee, whether  the termination of his employment was unlawful and whether he is entitled to the prayers sought.

As pointed out by the  Claimant's counsel, Section 37(i) of the Employment Act provides for conversion of a casual employee to term contract after working for one  month continuously  of three months intermittently.   Having worked continuously from 2003 to 13th July 2009, the Claimant was no longer a casual employee.  He was a monthly contract employee as provided in Section 37(2) and (3) .  For this reason the Claimant was entitled to one months salary in lieu of notice.

On  issue number 2, the Claimant's employment was terminated when the services he was rendering were outsourced.  He  therefore  lost his job  through redundancy.

Section  41 of the  Employment Act is  therefore not applicable as the procedure for termination of his employment   falls  under Section 40 of the Act.

On the Claimant's prayers, no explanation or justification has been made for the claim of 3 months salary in lieu of notice.  As I have pointed out above he was entitled to one month's  salary in lieu of notice.

The Claimant has not explained how he arrived at the tabulation of 240 leave days.  For the 6 years and 2 months  that he  worked for the respondent  the Claimant is entitled to 129. 5  leave days which at Shs. 414 per day which the Claimant was earning at the time of redundancy  amount works out at Shs. 53,613 which I award him under this head.

The Claimant  prays  for 144 off- days at Shs. 59,616.  He  was already paid  Shs. 59,620 for the same and is not entitled to any further payment under the same head of payment.  The Claimant is entitled to severance pay of Shs. 37,260 at the rate of 15 days salary per year worked and not Shs. 86,112 claimed.  There is no provision for payment of leave allowance by law and the Claimant has not stated the legal or  contractual basis for the claim while the Claimant's  daily wage was inclusive of house allowance and the claim for house allowance  therefore has no basis.  No overtime was proved.

Having been declared redundant, the claim for compensation for unfair termination must also fail.

For  the foregoing reasons I award the Claimant Shs. 60,896. 10 made up as follows

a)  1 months salary in lieu notice in the sum of ...................Shs.11,592

b)  129. 5 leave days ..............................................................Shs.53,613

c)   144 off days .....................................................................Shs.59,620

d)    Severance pay of ............................................................Shs. 37,260

_______________

Total                                                   Shs. 162,085

Less payment  received                          Shs. 101,188. 90

____________

Payment due                                                   Shs. 60,896. 10

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The Respondent  shall also issue a certificate of service to the Claimant within 30 days.

Dated and signed and delivered  this 21st Day of January, 2016

MAUREEN ONYANGO

JUDGE