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ELRCPartially AllowedCause No 686 of 2012· [2012] KEELRC 144 (KLR)

DAVID MUTHOKA KYUNGU V ATHUSI BAR AND RESTAURANT [2012] KEELRC 144 (KLR)

Industrial Court of Kenya
23 November 2012
1,680 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled a bar unfairly sacked its accountant for complaining about low pay, awarding him Ksh.128,000 and costs.

What this practically means

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Executive summary

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The claimant, acting in person, sued the respondent claiming service pay and pay in lieu of untaken annual leave (Ksh.76,800/=), compensation of 12 months' wages (Ksh.96,000/=) for wrongful dismissal, costs and interest. The respondent admitted employing him as an accountant from 29th September 2003 at a monthly wage of Ksh.8,000/= until termination on 31st August 2011, and pleaded that the termination was fair, having followed the claimant's abusive language and uncooperative attitude, and that he had taken leave in 2007 and 2008 with the rest paid in lieu. The trigger was the claimant's letter of 7th April 2011 raising grievances over low pay and requesting a transfer; he was placed on compulsory leave on 20th April 2011 and terminated on 31st August 2011. The respondent's counsel, though present, called no witness. The court held that the respondent failed to prove the pleaded reason for termination, that the termination letter stated no reason, and that under Section 43 of the Employment Act, 2007 the burden of proving the reason lay on the employer; the termination was therefore unfair. Relying on Section 46(h), the court found it was unfair labour practice to terminate the claimant for a genuine, well-founded complaint about pay. The claimant was awarded Ksh.96,000/= being 12 months' gross salary compensation and Ksh.32,000/= service pay under Section 35(5). The claim for pay in lieu of annual leave failed for want of sufficient evidence. Judgment was entered for Ksh.128,000/= plus interest, with costs to the claimant.

Key legal issues

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01

Whether the termination was fair and lawful

Holding

Termination was unfair; the respondent failed to prove the pleaded reason and the termination letter stated no reason, breaching Sections 43 and 46(h) of the Employment Act.

Reasoning

The respondent pleaded that termination followed abusive language and uncooperative attitude but led no evidence to prove it. The termination letter itself did not state any reason. The claimant had raised a genuine grievance about low pay and requested a transfer, and it was unfair labour practice to impose compulsory leave and termination flowing from that genuine complaint, contrary to Section 46(h).

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02

Compensation for unfair termination

Holding

Claimant awarded 12 months' gross salary compensation of Ksh.96,000/= as prayed.

Reasoning

Having found the termination unfair, the court awarded the maximum 12 months' gross salary compensation claimed, computed at the claimant's monthly wage of Ksh.8,000/=, consistent with the claimant's entitlement upon a finding of unfair termination.

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03

Service pay

Holding

Claimant awarded service pay of Ksh.32,000/= as claimed, being entitled to service pay for every year worked under Section 35(5).

Reasoning

Section 35(5) of the Employment Act, 2007 entitles an employee to service pay for every year worked. The court found the claimed Ksh.32,000/= reasonable and granted it as prayed in the memorandum of claim.

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04

Pay in lieu of untaken annual leave

Holding

Claim failed for lack of sufficient evidence.

Reasoning

The respondent had a duty to maintain leave records but did not produce them; however, the claimant also did not testify to support this head of claim. In the absence of sufficient evidence either way, the court found the claim unproven and dismissed it.

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Legal principles established

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  • Under Section 43 of the Employment Act, 2007, the employer bears the burden of proving the reason for termination, and failure to do so renders the termination unfair.
  • A well-founded complaint by an employee cannot constitute a fair reason for dismissal under Section 46(h) of the Employment Act, 2007.
  • An employee is entitled to service pay for every year worked under Section 35(5) of the Employment Act, 2007.

Court orders

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  1. 1.Declaration that the termination of the claimant's employment by the respondent was unfair
  2. 2.Respondent to pay the claimant Ksh.128,000/= plus interest at court rates till full payment
  3. 3.Respondent to pay the costs of the cause

Authorities

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Legislation

  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 46(h)
  • Employment Act, 2007Section 35(5)
Jurisdiction invoked
Employment and labour relations dispute under the Employment Act, 2007 (Industrial Court jurisdiction)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "DAVID MUTHOKA KYUNGU V ATHUSI BAR AND RESTAURANT [2012] KEELRC 144 (KLR)", Case Analysis (2012). Cause No 686 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2012/144/eng@2012-11-23

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.