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ELRCAllowedCause No 737 of 2011· [2013] KEELRC 857 (KLR)

Rose Amanya Kong’ani v Vegpro Kenya Limited [2013] KEELRC 857 (KLR)

Industrial Court (Employment and Labour Relations Court)
3 October 2013
1,856 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 that firing a worker for requesting sick leave is unfair and awarded her full benefits.

What this practically means

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Executive summary

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The Claimant, Rosa Amanya Kong'ani, sued the Respondent alleging unlawful termination of employment and non-payment of terminal benefits, claiming a declaration that her summary dismissal was unfair, Kshs.226,050 with interest, and costs. She testified she worked from 21st October 1998 packing french beans, without a letter of appointment, was paid daily in cash, and on 15th July 2008 was sent home after applying for sick leave and never recalled. The Respondent called a Wages Coordinator who could not say when she was recruited or how her employment ended, and produced unsigned extracts of attendance records. The court framed five issues. Relying on section 10(7) of the Employment Act, it held the Claimant was employed on 21st October 1998 and in continuous employment to 15th July 2008, the Respondent having failed to discharge its record-keeping burden. Applying section 37, her casual employment was held to have converted to a monthly contract by operation of law, following the Opwaka and Anyanga decisions cited by the Claimant. Her termination for applying for sick leave was held unfair under sections 41 and 46(b). She was awarded 28 days' notice pay (Kshs.7,700), annual leave of Kshs.55,825, service gratuity of Kshs.37,125 and 9 months' compensatory damages (Kshs.74,250) under section 49(4). Judgment was entered for the Claimant in the sum of Kshs.174,900 with costs of the suit.

Key legal issues

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01

Date of commencement of employment

Holding

The Claimant was employed on 21st October 1998 by virtue of section 10(7) of the Employment Act, the Respondent having failed to produce records of the date of employment.

Reasoning

The employer is statutorily required to keep records of the date of commencement of employment and to produce them in court proceedings. RW1 did not know when the Claimant was recruited, and there were no records for 1998 to 2003. In the absence of such evidence contradicting the Claimant's testimony, the court adopted the Claimant's asserted start date under section 10(7).

p. 2
02

Continuous employment

Holding

The Claimant was in continuous employment from 21st October 1998 to 15th July 2008; the Respondent's unsigned extracts did not discharge its evidential burden.

Reasoning

The Respondent produced unsigned extracts of attendance records prepared after the claim was filed rather than the originals signed by the Claimant, and there were no records for 1998 to 2003. RW1 did not extract the information and did not know when it was done. Section 10(7) placed the burden on the employer, which it failed to discharge, leaving the Claimant's uncontroverted allegation to be presumed true.

p. 3
03

Legal status of employment - casual vs term contract

Holding

The Claimant's casual employment had converted to a monthly contract of service by operation of law under section 37 of the Employment Act.

Reasoning

Although the bus pass described the Claimant as a casual employee and she was paid daily in cash, she had worked for more than 3 months. Section 37 provides for conversion of casual employment to a term contract after one month's continuous work or three months' intermittent work, and this court's earlier decisions in Opwaka and Anyanga so held.

p. 3
04

Fair procedure before termination

Holding

The termination of the Claimant's employment for applying for sick leave was unfair; the allegation that she absconded was unproven.

Reasoning

RW1 did not know how the employment was terminated and the Respondent adduced no evidence that the Claimant absconded duty. Her testimony that she was terminated after seeking sick leave was therefore uncontroverted. Section 41 prescribes termination procedure, and section 46(b) provides that an employee's proposal to take entitled leave is not a fair reason for dismissal.

p. 3
05

Entitlement to terminal benefits and compensatory damages

Holding

The Claimant was awarded notice pay, accrued annual leave, service gratuity and 9 months' salary as compensatory damages, totalling Kshs.174,900.

Reasoning

Having converted to a term contract, the Claimant was entitled under section 37(3) to the terms she would have enjoyed under the Act. She received 28 days' notice pay, leave for 116 months at 1.75 days per month, and service gratuity at 15 days per year since she was not in NSSF or any gratuity scheme. Compensatory damages were assessed at 9 months' salary under section 49(4).

p. 4

Legal principles established

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  • Where an employer fails to produce employment records required under section 10 of the Employment Act, the burden of proving or disproving an alleged term of employment falls on the employer and the court may accept the employee's uncontroverted testimony.
  • Casual employment converts to a term contract by operation of law under section 37 of the Employment Act where an employee has worked continuously for one month or intermittently for three months.
  • Terminating an employee for applying for leave to which they are entitled is unfair under section 46(b) of the Employment Act.

Court orders

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  1. 1.Judgment entered for the Claimant against the Respondent in the sum of Kshs.174,900
  2. 2.Award of 28 days salary in lieu of notice at Kshs.7,700
  3. 3.Award of annual leave for 116 months at 1.75 days per month, Kshs.55,825
  4. 4.Award of service gratuity at 15 days pay per completed year of service, Kshs.37,125
  5. 5.Award of compensatory damages of 9 months' salary at Kshs.74,250
  6. 6.Declaration that the termination of the Claimant's employment was unfair
  7. 7.Claimant granted costs of the suit

Authorities

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Legislation

  • Employment ActSection 10(7)
  • Employment ActSection 10
  • Employment ActSection 37
  • Employment ActSection 37(3)
  • Employment ActSection 41
  • Employment ActSection 46(b)
  • Employment ActSections 28, 35 and 36
  • Employment ActSection 49(4)

Cases cited (2)

  • Wilfred Bukachi Opwaka V Ready Consultancy
    Cause No. 909 of 2011
  • Margaret Anyanga V Vegpro Kenya Limited
    Cause No. 658 of 2012
Jurisdiction invoked
Original jurisdiction over employment and labour relations disputes (Memorandum of Claim 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, "Rose Amanya Kong’ani v Vegpro Kenya Limited [2013] KEELRC 857 (KLR)", Case Analysis (2013). Cause No 737 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/857/eng@2013-10-03

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