Kenya Hotels and Allied Workers Union v Panari Hotel & 12 others [2018] KEELRC 867 (KLR)
- Court
- Employment & Labour Relations Court
- Case number
- 867
- Citation
- [2018] KEELRC 867 (KLR)
- Decided
- 26 October 2018
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeEmployment DisputePostureAppeal from a previous orderCoramNdolo
Holding
The court found the hotels' actions unlawful and unreasonable, and ordered them to stop charging VAT on employees' service charges.
Facts
The Kenya Hotels and Allied Workers Union filed a claim against various hotels for unlawful deductions of 16% VAT on employees' service charges. The hotels refused to provide records, leading to the claimant seeking to recover the charges.
Issues
- Whether employers can recover VAT from employees
- Validity of the hotels' actions in recovering VAT
Reasoning
The court could not understand the circumstances under which employers could recover VAT from employees and found the hotels' actions to be unlawful and unreasonable.
Outcome
Judgment in favor of the aggrieved employees against the respondents
Orders
- Directs that any charges of 16% VAT on employees' service charge must stop forthwith
- Directs that each party will bear its own costs
Remedies
- Recovery of past charges pending filing of particulars by the aggrieved employees
- Order for the 3rd to 11th respondents and two members of the 2nd Interested Party to provide records for the 16% VAT on their employees' service charge
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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