[2015] KEELRC 509 (KLR)
The court found that the Respondent failed to justify the termination of the Claimants' employment or to provide any evidence supporting the allegations of drunkenness. The Claimants were not given a hearing or an opportunity to respond to the accusations, violating the procedural fairness required by the Employment...
Source-derived case information.
- Citation
- [2015] KEELRC 509 (KLR)
- Parties
- Claimant: Charles Nyegenye; Claimant: George Ouko; Respondent: Hatari Security Services Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Mombasa
- Jurisdiction
- Kenya
- Case Number
- Cause 83 of 2015
- Procedural Posture
- Employment Cause / Final Judgment
- Outcome
- Claim allowed in full for both Claimants.
- Legal Topics
- Unfair Termination, Minimum Wage, House Allowance, Uniform Allowance, Summary Dismissal, Employee Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Charles Nyegenye
Claimant
George Ouko
Claimant
Hatari Security Services Limited
Respondent
Procedural Posture
Employment Cause / Final Judgment
Legal Issues
- 1 Whether the termination of the Claimants' employment was unfair and unlawful.
- 2 Whether the Claimants were entitled to minimum wage, house allowance, and uniform allowance.
- 3 Whether the Respondent complied with statutory requirements in terminating the Claimants' contracts.
Ratio Decidendi
The court found that the Respondent failed to justify the termination of the Claimants' employment or to provide any evidence supporting the allegations of drunkenness. The Claimants were not given a hearing or an opportunity to respond to the accusations, violating the procedural fairness required by the Employment Act. The evidence showed the Claimants were underpaid below the statutory minimum wage, denied house allowance, and had uniform deductions unlawfully withheld. The Respondent's absence from proceedings meant the Claimants' evidence was unchallenged. The court concluded that the termination was unfair and unlawful, and awarded compensation equivalent to 12 months' salary, as...
Court Disposition
Claim allowed in full for both Claimants.
Orders
- The Claimants’ contracts of employment were unfairly terminated.
- The Respondent shall pay the 1st Claimant a total sum of Kshs. 164,294, and the 2nd Claimant Kshs. 154,752, in terminal benefits and compensation for unfair termination.
Full Case Text
Judgment text and source record
39 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT MOMBASA
CAUSE NUMBER 83 OF 2015
BETWEEN
1. CHARLES NYEGENYE
2. GEORGE OUKO ………………………………………….. CLAIMANTS
VERSUS
HATARI SECURITY SERVICES LIMITED ………………. RESPONDENT
Rika J
Court Assistant: Benjamin Kombe
___________________________
Mr. Nyange Sharia Advocate instructed by KITUO CHA SHERIA, Advocates for the Claimant
No appearance for the Respondent
_________________________________________________________________________
ISSUE IN DISPUTE: UNFAIR AND UNLAWFUL TERMINATION
AWARD
[Rule 27 [1] [a] of the Industrial Court (Procedure) Rules 2010]
_________________________________________________
The Claimants filed their joint Statement of Claim on 24th February 2015. They state they were employed by the Respondent as Security Guards, from 19th July 2012 to 20th July 2013 when their contracts of employment were unfairly and unlawfully terminated. They earned a monthly salary of Kshs. 7,500 as of the date of termination. They state their contracts were unfairly terminated, and that during service, they were denied various employment benefits. They pray for the following orders against their former Employer:-
A declaration that termination of the Claimants’ employment was unfair and unlawful.
A declaration that the Claimants were entitled to uniform and house allowances.
The Respondent is ordered to pay to the Claimants the following: Charles Nyegenye- 1 month salary in lieu of notice at Kshs. 7,500; uniform allowance at Kshs. 200 per month; underpayment of salary at Kshs. 2,071 totaling Kshs. 28,994; house allowance at Kshs. 2,500 per month adding up at Kshs. 35,000; and 12 months’ salary in compensation for unfair termination at Kshs. 90,000- total Kshs. 164, 294. George Ouko-1 month salary in lieu of notice at Kshs. 7,500; uniform allowance at Kshs. 200 per month at a total of Kshs. 24,852; house allowance of Kshs. 2,500 per month added at Kshs. 30,000 per month; and compensation for unfair termination the equivalent of 12 months’ salary at Kshs. 90,000- total Kshs. 154,752.
Certificates of service to issue.
Any other suitable relief.
Costs.
2. The Respondent, although served with the Summons and the Claim, filed nothing, and did not attend Court on any occasion. The Claimants proceeded with their evidence ex parteon the 10th July 2015.
3. The 1st Claimant testified he worked for the Respondent for 1 year. His salary was paid through the Equity Bank as borne out in his Bank Statement attached to the Claim. His Manager found him at the premises where the 1st Claimant had been assigned guarding duties on the 19th July 2013. The Manager told him to report to the Office the following day, the 20th July 2013. Upon report the Manager alleged the Claimants were drunk on duty the previous day. The Claimants were asked to remove their Work Uniforms, and dismissed on the spot. The 1st Claimant testified he and his Colleague were not drunk. The Claimants had Kshs. 200 deducted from their salaries each month as Uniform Allowance. On surrendering the Uniform they were not paid this money. They were underpaid. They were denied house allowance. They were not availed housing accommodation.
4. The 2nd Claimant associated himself fully with the testimony of the 1st Claimant. He added they had been assigned duties at Railways in Mombasa. The Manager found the 2nd Claimant patrolling the area on the 19th July 2013. The Manager alleged the Claimants had been drinking while on duty and dismissed them the following day as narrated by the 1st Claimant. The 2nd Claimant similarly was not paid his dues under the items mentioned by the 1st Claimant in his evidence. The Claimants pray the Court to allow their respective Claims.
The Court Finds:
5. The Pleadings, Evidence and Submissions of the Claimants are unchallenged. The Respondent Employer had the duty to justify its decision, and show termination was carried out fairly, as demanded by Section 41, 43 and 45 of the Employment Act 2007. There is no doubt the Claimants were employed by the Respondent for about 1 year each, as Security Guards. Their contracts were terminated on 20th July 2013. The Respondent alleged the Claimants were drunk while on duty. This allegation was not substantiated in the absence of the Respondent from the proceedings. There was no hearing granted to the Claimants to answer any allegations. Termination was unfair on all fronts, and the Claimants are granted compensation the equivalent of their 12 months’ salary as pleaded.
6. It was demonstrated they were underpaid. Each received Kshs. 7,500 per month, below the minimum wage threshold allowed by the law. The General Order of 2012 set the wage floor for Security Guards in Mombasa at Kshs. 9,571. They were not paid house rent allowance or availed reasonable housing at or near their place of work as required under Section 31 of the Employment Act 2007. Their Employer deducted Kshs. 200 from them every month as Uniform Allowance. On termination the Employer retained the Uniforms and the Claimants’ accumulated deductions used in procuring those Uniforms. This amounted to theft by an Employer. The Respondent treated its Employees below the minimum employment standards while the Claimants were in service, and subjected them to similar treatment on termination. The respective Claims have merit. IT IS ORDERED:-
The Claimants’ contracts of employment were unfairly terminated.
The Respondent shall pay the 1st Claimant a total sum of Kshs. 164,294, and the 2nd Claimant Kshs. 154,752, in terminal benefits and compensation for unfair termination.
The Respondent shall release to the Claimants their Certificates of Service.
Costs to the Claimants.
Dated and delivered at Mombasa this 25th day of September 2015.
James Rika
Judge