Kenya Judgment

High Court · High Court at Nairobi (Milimani Law Courts)

Peter Odinga Ngolo v Chandaria Industries Limited [2017] KEHC 8026 (KLR)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court found that the claimant had been in continuous employment for an aggregate period exceeding one month, thus the deeming provisions of section 37 of the Employment Act applied, making him a regular employee for purposes of termination. The respondent failed to discharge the burden of proof to justify the termination, as no evidence was produced to show that the claimant was called back to work or formally dismissed for misconduct. The court concluded that the termination was unfair and awarded the claimant one month's salary in lieu of notice, compensation for unfair termination, and accrued leave, as well as costs and a certificate of service.

Court disposition

Claim allowed; termination declared unfair; compensation and other reliefs awarded to claimant.

Orders

  • Respondent to pay claimant one month's salary in lieu of notice (Kshs 14,760).
  • Respondent to pay claimant for leave untaken (Kshs 88,560).
  • Respondent to pay claimant six months' salary for unfair termination (Kshs 88,560).
  • Respondent to pay costs of the suit.
  • Respondent to issue claimant with a certificate of service.

02

Material facts

Parties

Peter Odinga Ngolo

Claimant

Chandaria Industries Limited

Respondent

Amounts and remedies

  • One Month's Salary in Lieu of Notice: KES 14,760
  • Leave Untaken: KES 88,560
  • Six Months' Salary for Unfair Termination: KES 88,560
  • Total Award: KES 191,880

03

Procedural history

  1. Posture

    Employment Cause / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The claimant argued that he was employed by the respondent from May 2007, initially as a general worker and later as a machine attendant, and that his services were terminated without notice or valid reason. He contended that he was constructively dismissed and sought compensation for unfair termination, notice pay, and accrued leave.
Respondent
The respondent contended that the claimant was a casual employee whose services were terminable at will under section 35(1)(a) of the Employment Act, and that his engagement depended on the availability of work. The respondent further alleged that the claimant deserted duty after being suspected of involvement in theft, and that he was not entitled to the claimed benefits.

05

Court’s reasoning

  1. 01

    Section 37, Employment Act

    A casual employee who works continuously for an aggregate period exceeding one month is deemed to be a regular employee, and termination procedures for regular employees apply.

  2. 02

    Section 43, Employment Act

    The burden of proof for the reason or justification for dismissal or termination of employment rests with the employer.

  3. 03

    Sections 35, 49, and 28, Employment Act

    Where termination is found to be unfair, the employee is entitled to compensation, notice pay, and accrued leave.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the claimant had been in continuous employment for an aggregate period exceeding one month, thus the deeming provisions of section 37 of the Employment Act applied, making him a regular employee for purposes of termination. The respondent failed to discharge the burden of proof to justify the termination, as no evidence was produced to show that the claimant was called back to work or formally dismissed for misconduct. The court concluded that the termination was unfair and awarded the claimant one month's salary in lieu of notice, compensation for unfair termination, and accrued leave, as well as costs and a certificate of service.

Obiter and limits

  • Employers must adhere to statutory procedures when terminating employees who have worked continuously for more than one month, regardless of the initial terms of engagement.
  • The absence of a formal dismissal letter or documented disciplinary process undermines the employer's justification for termination.

Court disposition

Claim allowed; termination declared unfair; compensation and other reliefs awarded to claimant.

  • Respondent to pay claimant one month's salary in lieu of notice (Kshs 14,760).
  • Respondent to pay claimant for leave untaken (Kshs 88,560).
  • Respondent to pay claimant six months' salary for unfair termination (Kshs 88,560).
  • Respondent to pay costs of the suit.
  • Respondent to issue claimant with a certificate of service.

Source and reliance status

High Court

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Judgment reading view

Judgment text

The complete available source text.

Source document

High Court

Judgment

[2017] KEHC 8026 (KLR)

REPUBLIC OF KENYA

IN THE EMPLOYMENT AND LABOUR RELATIONS COURT OF

KENYA AT NAIROBI

CAUSE NO 438 OF 2014

PETER ODINGA NGOLO.…………………………..…………..CLAIMANT

VERSUS

CHANDARIA INDUSTRIES LIMITED….….............................RESPONDENT

JUDGEMENT

1. By a memorandum of claim filed on 20th March, 2014 the claimant averred that he was employed by the respondent in May 2007 initially as a general worker and later as a machine attendant drawing daily wage of Kshs 492/= per day.

2. On 27th May, 2013 he claimed that the head of converting department, a Mr Shetty summoned and told him that his services were no longer required. He was advised to go home until the day the personnel manager would call him back to work.

3. He further pleaded that he visited the respondents premises several time to enquire about his reinstatement but without success. The claimant therefore deemed the respondent’s action as constructive dismissal which was wrongful and unlawful. He therefore sought an order of compensation as detailed in his memorandum of claim.

4. The respondent admitted the claimant was its employee engaged from time to time as a casual employee to be paid wages at the end of the day. The respondent further averred that being a casual employee, provisions of section 35(1) (a) of the Employment Act applied and therefore averred that the claimant’s services were terminable at the options of either party without notice. Further, the claimant’s engagement being casual in nature, his engagement was subject to availability of casual assignment.

5. In his oral testimony in court, the claimant additionally stated that he was a casual employee for five months and later became an attendant at a daily wage of Kshs 609 paid weekly. They were issued with payslips. On 27th May, 2013 his head of department told him there was no work and he should go home. He further stated that he learnt of a plan to reduce work force though he was never issued with a formal letter to that effect.

6. In cross-examination he denied ever taking tissue paper without authority and that he never shouted at anyone. He was simply ordered out. The respondent’s witness Mr Joash Chahanza stated that he was the HR- Manager and that he knew the claimant. He further stated that packing and converting department where the claimant worked hired workers on need basis.

7. According to him on 27th May, 2013 the claimant was stopped from working because some company products were found out of the company’s remises and the claimant was the suspect. The claimant subsequently disappeared and never came back to work for fear of arrest. Regarding leave, it was his evidence that leave was not given to workers of claimant’s cadre because the work was seasonal. He further stated that the claimant’s terminal benefits had not been paid because the claimant has never gone for them.

8. Concerning payslips, he stated that the respondent maintained a check off system to establish days and hours worked. The payslips were for six days and were clustered. They never meant one had worked for the entire six days. It is common ground that the claimant was a casual worker. It is further common ground that on 27th May, 2013 the claimant left employment. What is contested is the reason the claimant left employment.

9. According to the claimant, his head of department told him to go home as there was no more work. According to the respondent, the claimant stopped coming to work after some company products were found outside the company’s premises without authority and the claimant and another were suspected to be responsible.

10. From the pleadings and evidence, the claimant was in continuous engagement with the respondent for an aggregate period exceeding one month. The deeming provisions of section 37 of the Employment Act therefore applied to him. That is to say in terminating his services, the procedure and process governing the termination of regular employees applied to him as well.

11. The respondent alleges the claimant deserted duties after being suspected of involvement in attempted theft of company property but no evidence has been produced to show an attempt was made to call him back to work or face dismissal. In termination of employment cases, the burden of proof of the reason or justification for dismissal or termination of employment rests with the employer. In this particular case the court is not satisfied that the burden has been discharged to the required standards.

12. The court therefore finds that the termination of claimant’s services was unfair and awards him as follows;

a) One month’s salary in lieu of notice Kshs.

(492 x 30 days) 14,760

b) Leave untaken 88,560

c) Six month’s salary for unfair termination of services 88560

191,880

13. Costs of the suit

14. The respondent shall further issue the claimant with a certificate of service.

15. It is so ordered.

Dated at Nairobi this 10th day of February 2017

Abuodha J. N.

Judge

Delivered this 10th day of February 2017

In the presence of:-

……………………………………………………………for the Claimant and

………………………………………………………………for the Respondent.

Abuodha J. N.

Judge

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Employment Act, 2007 (Sections 35, 37, 43, 49, 28)

Legislation

Legislation referenced in the available case record.

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