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ELRCPartially AllowedCause No. 2225 of 2012· [2013] KEELRC 603 (KLR)

Erick Otieno Owino v Hebatullah Brothers Limited [2013] KEELRC 603 (KLR)

Industrial Court of Kenya
24 June 2013
934 words in judgment
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The bottom line

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A Kenyan worker fired for asking about his salary won Kshs 106,300 because the employer gave no valid reason for the dismissal.

What this practically means

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Executive summary

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The claimant, Erick Otieno Owino, sued Hebatullah Brothers Limited for unfair termination and non-payment of terminal dues, alleging he was employed in October 2004 as an electrician/driver earning Kshs. 10,630.00 per month and terminated on 5th May 2012 without warning, notice or reasons after he queried alleged underpayment of his Grade III salary. The respondent, though served with summons and a hearing notice and an affidavit of service filed, did not enter appearance or offer a defence, so the matter proceeded on the claimant's sworn evidence on 30th May 2013. The court found the letter of appointment did not state the claimant's position or terms, and invoked section 10 of the Employment Act to take the claimant's evidence of his work status as correct. It held that any termination must have a basis, and that dismissing an employee for raising a workplace grievance is not a valid or reasonable ground, finding the claimant unfairly terminated. It awarded three months' pay as compensation (Kshs. 31,890.00) rather than the twelve months claimed, one month's notice pay (Kshs. 10,630.00), and leave pay of Kshs. 63,780.00 covering the continuous employment from 2004 including casual periods, totalling Kshs. 106,300.00. The court declared the termination unfair, ordered a Certificate of Service within 14 days, and awarded costs to the claimant. Judgment was delivered by M. Mbaru, Judge, on 24th June 2013.

Key legal issues

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01

Whether the termination was unfair

Holding

The termination was unfair as no notice, reasons or valid grounds were given; terminating the claimant after he raised a salary grievance was unreasonable

Reasoning

The respondent did not enter appearance or file a defence, so only the claimant's sworn evidence was before the court. The claimant testified he was chased away after asking about his pay under his Grade III. The court held that any termination must have a basis, and that dismissing an employee for raising a workplace grievance is not a valid or reasonable ground, nor a reason recognised under established law.

p. 2
02

Entitlement to notice pay

Holding

One month's pay in lieu of notice awarded since no notice of termination was issued

Reasoning

The claimant testified he was never given notice of termination. The court found no notice was indicated to have been issued by the respondent before the termination and therefore awarded one month's pay in lieu of termination notice at Kshs. 10,630.00.

p. 2
03

Leave days pay

Holding

Leave pay of Kshs. 63,780.00 awarded as claimed, covering continuous employment from 2004 including casual periods

Reasoning

The court held leave days are payable at termination. Because the claimant's employment was continuous and uninterrupted from 2004, first as a casual and later as a permanent employee, the leave days due should have been taken or paid for. The respondent failed to do so, so the claimed amount of Kshs. 63,780.00 was awarded in full.

p. 2
04

Compensation for unfair termination

Holding

Three months' pay (Kshs. 31,890.00) awarded in compensation rather than the twelve months claimed

Reasoning

Although the claimant sought compensation for 12 months amounting to Kshs. 124,320.00, the court exercised its discretion to award three months' pay, amounting to Kshs. 31,890.00, as compensation for the unfair termination.

p. 2

Legal principles established

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  • Where an employer fails to state particulars of employment under section 10 of the Employment Act, the court will take the claimant's evidence on his work status as the correct position
  • A termination must have a valid basis; terminating an employee for raising a grievance at the workplace is not a valid or reasonable ground
  • Leave days accrue and are payable at termination where employment was continuous, including periods of continuous casual engagement

Court orders

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  1. 1.Declaration that the claimant was unfairly terminated by the respondent
  2. 2.Compensation for unfair termination awarded at Kshs. 31,890.00
  3. 3.Notice pay amounting to Kshs. 10,630.00
  4. 4.Leave due amounting to Kshs. 63,780.00 (total award Kshs. 106,300.00)
  5. 5.Respondent to issue the claimant with a Certificate of Service within 14 days
  6. 6.Costs of the suit to the claimant

Authorities

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Legislation

  • Employment ActSection 10
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court (claim for unfair termination and terminal dues under the Employment Act)

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, "Erick Otieno Owino v Hebatullah Brothers Limited [2013] KEELRC 603 (KLR)", Case Analysis (2013). Cause No. 2225 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/603/eng@2013-06-24

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