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ELRCPartially AllowedMemorandum of Claim dated 15th December 2011 (Industrial/ELRC cause)· [2013] KEELRC 696 (KLR)

Theresiah Wayua King’oo v Nodor Kenya Epz Limted [2013] KEELRC 696 (KLR)

Industrial Court (Employment and Labour Relations Court)
29 July 2013
2,198 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 awarded a dismissed worker only Kshs.80,000 because she could not prove her larger claims—documentation and evidence decide employment cases.

What this practically means

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Executive summary

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The claimant, employed by the respondent from January 2006 (initially as a casual from September 2005) and terminated on 19th November 2010, claimed Kshs.403,724/= comprising payment in lieu of leave for 5 years, travelling allowance and house allowance, together with damages for unfair termination. The respondent admitted the employment and termination but contended it had met all contractual obligations, having paid November salary, one month's salary in lieu of notice, 60 days' severance pay, payment for untaken leave days and welfare refund; it sought dismissal of the claim with costs. The claimant testified; the respondent called no witness. The court dismissed the leave claim, finding the claimant admitted taking annual leave, signed leave acknowledgment forms, and was paid for untaken days, her oral evidence contradicting the claim. The travelling allowance claim failed for want of proof and absence of any legal or contractual basis. The house allowance claim failed because the contract consolidated all allowances into the basic salary, attracting the exclusion in section 31(2)(a) of the Employment Act. On fairness, the court held that the common law position relied on by the respondent - that an employer may terminate without reasons on giving notice - had been superseded in Kenya by sections 41, 43 and 45 of the Employment Act 2007, which the respondent did not comply with. The termination was therefore unfair and the claimant was awarded Kshs.80,000/= being four months' salary as compensation. The monetary claim of Kshs.403,724/= was dismissed and, the claimant having substantially failed, there was no order for costs.

Key legal issues

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01

Payment in lieu of leave for 5 years

Holding

Claim dismissed; the claimant took her leave and was paid for untaken leave days

Reasoning

The claimant admitted under cross-examination that she took leave every year, signed leave acknowledgment forms for 2009, took 14 days leave in 2010 and was paid Kshs.2,160/= for untaken leave days as reflected in her last payslip. Her oral evidence contradicted her pleaded claim, so she failed to discharge the burden of proof.

p. 3
02

Travelling allowance

Holding

Claim dismissed for lack of proof and absence of legal or contractual basis

Reasoning

The claim was inconsistently computed (shs.100 per day in testimony, shs.150 per day in submissions) with no explanation of how the total of Kshs.209,000/= was arrived at. No evidence proved the daily expenditure, and the benefit was neither provided for by law nor in the employment contract.

p. 3
03

House allowance

Holding

Claim dismissed; contract consolidated allowances into basic salary

Reasoning

Section 31 of the Employment Act requires an employer to provide housing or a reasonable house allowance, but section 31(2)(a) excludes employees whose contracts consolidate a rent element in the basic wage. The claimant's contract expressly provided that her salary included all allowances such as house allowance and bonus.

p. 3
04

Damages for unfair termination

Holding

Termination was unfair; claimant awarded 4 months' salary, Kshs.80,000/=

Reasoning

The respondent neither gave reasons for the termination nor afforded the claimant a hearing, contrary to sections 41, 43 and 45 of the Employment Act. The common law authorities relied on by the respondent (including the Povono case) applied common law principles displaced in Kenya by the Employment Act 2007, which commenced on 2nd June 2008. Damages of 4 months' salary were considered reasonable given the circumstances, payments made, length of service of just under 5 years, and the claimant's failure to justify a higher figure.

p. 4

Legal principles established

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  • In Kenya the common law entitlement to terminate employment without reason has been displaced by statute; an employer must give valid reasons and follow fair procedure under ss.41, 43 and 45 of the Employment Act.
  • Under section 31(2)(a) of the Employment Act, an employee whose contract consolidates a housing element into the basic wage is not entitled to a separate house allowance.

Court orders

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  1. 1.The claim for shs.403,724/= is dismissed
  2. 2.The Claimant is awarded damages for unfair termination in the sum of Kshs.80,000/=
  3. 3.There shall be no order for costs

Authorities

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Legislation

  • Employment ActSection 31
  • Employment ActSection 31(2)(a)
  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 45
  • Employment Act 2007commencement 2nd June 2008

Cases cited (3)

  • Povono v the Presiding Bishop of the Church of the Latter Say Saints (Samoa)
    (2002) WSSC 27
  • Kepha Otwana v Standard Group Limited
    Civil Case no. 395 of 2009
  • Koech v African Highlands & Produce Board
    (2006) 2EA
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over a wrongful dismissal and terminal dues claim under the Employment Act 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Theresiah Wayua King’oo v Nodor Kenya Epz Limted [2013] KEELRC 696 (KLR)", Case Analysis (2013). Memorandum of Claim dated 15th December 2011 (Industrial/ELRC cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/696/eng@2013-07-29

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