[2016] KEELRC 1472 (KLR)
The court found that the Respondent failed to provide a written contract or any evidence to counter the Claimant's testimony regarding the terms of employment and the circumstances of termination. The assertion that the Claimant was a casual employee was rejected due to evidence of continuous service. The Respondent...
Source-derived case information.
- Citation
- [2016] KEELRC 1472 (KLR)
- Parties
- Claimant: Dennis Mbuvi; Respondent: Raj Shah t/a Kenya Motor Sports Club Bar & Restaurant
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Bankruptcy Cause 1479 of 2013
- Procedural Posture
- Employment Cause / Final Award
- Outcome
- Claim allowed in part; compensation and terminal dues awarded to the Claimant.
- Judges
- L Ndolo
- Legal Topics
- Unlawful Termination, Compensation for Termination, House Allowance Claims, Leave Entitlements, Service Pay, Procedural Fairness
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Dennis Mbuvi
Claimant
Raj Shah t/a Kenya Motor Sports Club Bar & Restaurant
Respondent
Procedural Posture
Employment Cause / Final Award
Legal Issues
- 1 Whether the termination of the Claimant's employment was justifiable and fair.
- 2 Whether the Claimant is entitled to the remedies sought.
Ratio Decidendi
The court found that the Respondent failed to provide a written contract or any evidence to counter the Claimant's testimony regarding the terms of employment and the circumstances of termination. The assertion that the Claimant was a casual employee was rejected due to evidence of continuous service. The Respondent did not prove allegations of gross misconduct or compliance with the mandatory disciplinary procedures under Section 41 of the Employment Act. Consequently, the termination was deemed unjustifiable and unfair. The Claimant was awarded compensation for unlawful termination, notice pay, house allowance, leave pay, and service pay, as the Respondent failed to discharge its...
Court Disposition
Claim allowed in part; compensation and terminal dues awarded to the Claimant.
Orders
- Respondent to pay Claimant Kshs.148,100 as compensation and terminal dues.
- Award to attract interest at court rates from the date of award until payment in full.
Full Case Text
Judgment text and source record
54 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO 1479 OF 2013
DENNIS MBUVI..............................................................................CLAIMANT
VS
RAJ SHAH T/A KENYA MOTOR SPORTS
CLUB BAR & RESTAURANT........................................................RESPONDENT
AWARD
Introduction
1. The Claimant's claim brought by way of Statement of Claim dated 3rd September and filed in Court on 11th September 2013 seeks compensation for unlawful termination and payment of terminal dues. The Respondent did not file a defence and did not attend the hearing.
The Claimant's Case
2. The Claimant states that he was employed by the Respondent as a Chef at a monthly salary of Kshs.15,000 effective 1st September 2011. He was not issued with a written employment contract. The Claimant pleads that he was not paid house allowance and never took his annual leave.
3. On 15th February 2013, the Claimant's employment was terminated without notice. It is his case that the termination was unjustifiable and that due procedure was not followed in effecting the termination.
4. On 13th May 2013, the Claimant's Advocate wrote a demand letter to the Respondent. In response, the Respondent's Advocate responded on the same day, stating that the Claimant was a casual employee and was dismissed for gross misconduct.
5. The Claimant claims the following:
A declaration that the termination of his employment was unlawful
12 months' salary in compensation for unlawful termination…....Kshs.207,000
1 month's salary in lieu of notice..............................................................15,000
Leave for 1 year and 5 months.................................................................20,770
Service gratuity @ 15 days' pay for each completed year.......................15,000
House allowance for 17 months @ 15% of basic salary..........................57,750
Overtime (4 hours Friday-Sunday)...........................................................119,232
Certificate of service
Costs plus interest
Findings and Determination
6. There are two issues for determination in this case:
Whether the termination of the Claimant's employment was justifiable and fair;
Whether the Claimant is entitled to the remedies sought.
The Termination
7. The Claimant told the Court that he was terminated without justifiable cause and that the termination ignored due procedure. The Respondent did not file a reply but in a letter dated 13th May 2013, the Respondent's Advocate states that the Claimant was a casual employee and was dismissed for gross misconduct. The Claimant testified that he worked continuously and denied the allegations of gross misconduct contained in the letter from the Respondent's Advocate. The Respondent did not present any evidence to the contrary.
8. The Respondent did not document the Claimant's employment as required under Section 9 of the Employment Act, 2007. In light of this, the Court adopts the Claimant's testimony with regard to the terms and conditions of his employment. That said, the suggestion that the Claimant was a casual employee is rejected.
9. In addition, the allegations of gross misconduct were not proved and cannot therefore be used as a basis for the termination of the Claimant's employment. At any rate, the Claimant was not subjected to the mandatory disciplinary procedure set out in Section 41 of the Act.
Remedies
10. From the foregoing, the Court finds that the termination of the Claimant's employment was unjustifiable and unfair and awards him four (4) months' salary in compensation. In making this award, I have taken into account the Claimant's length of service and the Respondent's conduct in the termination transaction. I further award the Claimant one (1) months' salary in lieu of notice.
11. With regard to the claim for house allowance, the Court did not find any evidence that the Claimant's salary was inclusive of house allowance. I therefore allow the claim for house allowance at the rate 15% and adopt the resultant gross figure of Kshs.17,250 as the Claimant's monthly salary for purposes of this claim.
12. In the absence of leave records to show that the Claimant had taken his annual leave, the claim for leave pay must also succeed. In similar vein, there was no evidence that the Claimant was a contributing member of the National Social Security Fund (NSSF) and he is therefore entitled to service pay.
13. The claim for overtime compensation was not proved and is dismissed.
14. Finally, I make an award in favour of the Claimant in the following terms:
4 months' salary in compensation for unlawful termination…..Kshs.69,000
1 month's salary in lieu of notice........................................................17,250
House allowance for 16 and ½ months.............................................37,125
Leave pay (17,250/30x21+17,250/30x1. 75x4)...................................16,100
Service pay for 1 complete year of service............................................8,625
Total..........................................................................................148,100
15. The award amount will attract interest at court rates from the date of the award until payment in full.
16. I further direct the Respondent to issue the Claimant with a certificate of service in accordance with Section 51 of the Employment Act, 2007.
17. The Claimant will have the costs of this case.
18. Orders accordingly.
DATED SIGNED AND DELIVERED IN OPEN COURT AT NAIROBI THIS 1ST DAY OF APRIL 2016
LINNET NDOLO
JUDGE
Appearance:
Mr. Nyabena for the Claimant
No appearance for the Respondent