Godfrey Mwangi Wanjohi v Mitchell Cotts Kenya Ltd
High Court, at Nairobi
June 28, 2002
Waki J
Civil Case No 1862 of 1995
Employment Law – termination of employment – general damages for wrongful dismissal – payments in lieu of notice – calculation of such payments – whether terminal benefits are calculable on the basis of salary only or the total salary and benefits – limits of payments for wrongful dismissal.
The plaintiff’s employment was terminated by the defendant, his employer. A dispute arose as to the payments due in lieu of notice and general damages for wrongful dismissal prompting this suit. The parties also raised the issue of whether the terminal benefits were therefore calculable on the basis of salary only or salary together with benefits.
Held:
1. The termination of the plaintiff was in accordance with the terms of employment, and the company need not have assigned a reason for invoking an employment clause agreed on by both parties.
2. The law on general damages for wrongful dismissal is well settled; such damages are limited to the amount the employer would have been obliged to pay if he had brought the contract to an end in accordance with the terms by giving either the proper notice or salary in lieu thereof. General damages are not recoverable.
3. The payments in lieu of notice made to the plaintiff should be based on the basic salary only and not the total sum of basic salary plus benefits, as they are set out separately and are not part of the salary. Furthermore in this particular case the letter of offer clearly distinguished between salary and allowances as one package and benefits as another package.
4. The terminal benefits are therefore calculable on the basis of the income of Kshs.120,500/=.
Cases
1. East African Airways v Knight [1975] EA 165
2. Kenya Ports Authority v Edward Otieno Civil Appeal No 120 of 1997
3. Gitau v EA Power and Lighting Co Ltd [1986] KLR 365
4. Kenya Oil Field Services Ltd v Peter Njoroge Civil Appeal No 124 of 1985
5. Addis v Gramophone Co Ltd [1908-1910] All ER 1; [1909] AC 488
6. Southern Highlands Tobacco Union Ltd v David McQueen [1960] EA 490
7. Shimba Tourist Services Ltd v Wilson Mise Kigan Civil Appeal No 144 of 1995
8. Kimani, George Kang’ethe v Associated Steel Ltd High Court Civil Case No 775 of 1987
9. Lulume v Coffee Marketing Board of Uganda [1970] EA 155
10. Wakiro & another v Committee of Bugisu Cooperative Union [1968] EA 523
Statutes
Civil Procedure Rules (cap 21 Sub Leg) order XXXIV
Advocates
Wangai Nguthe & Co Advocates for the Plaintiff
Mbai & Kibuthu Advocates for the Defendant