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ELRCPartially AllowedIndustrial Court Cause No. 12 of 2013 (memorandum of claim filed 20.06.2013)· [2013] KEELRC 952 (KLR)

Richard Kisiang’ani Wepukhulu v Taidy’s Restaurant [2013] KEELRC 952 (KLR)

Industrial Court
20 December 2013
1,826 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 an employer must pay full wages during an unfair indefinite suspension, plus compensation or reinstatement for constructive termination.

What this practically means

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Executive summary

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The claimant, employed by the respondent on 22.11.2008 and serving as Nakuru branch manager at a gross monthly pay of Kshs.38,211.00, was transferred to the Nairobi branch by letter dated 30.12.2012. He reported to Nairobi on 18.02.2013, having remained on duty at Nakuru during the handover period, and was on 20.02.2013 placed on unpaid indefinite suspension for allegedly absconding duty. He sued for February 2013 wages, 48 days' leave pay, lifting of the suspension, restoration to employment, wages for the suspension period, and costs. The sole issue was whether the claimant was entitled to the remedies prayed for. The court found, on a balance of probability, that the claimant did not abscond: the suspending manager was not privy to his being on duty, and his evidence of an oral off arrangement was accepted. The indefinite suspension was found unfounded and ordered lifted. The claimant was awarded February 2013 wages of Kshs.38,211.00 and leave pay of Kshs.42,190.90 for 42 outstanding days (rather than the 48 claimed). Applying the court's earlier Timber Treatment decision, he was awarded Kshs.265,200.00 in basic pay for March to December 2013, the period of unfair suspension. The court found the suspension amounted to conduct entitling the claimant to consider himself constructively terminated, and ordered re-engagement effective 1.01.2014 or, in the alternative, compensation of Kshs.458,532.00 under section 49(1)(c) of the Employment Act, 2007. Judgment was entered for the claimant with costs, payment due by 1.02.2014 failing which interest would run at court rates.

Key legal issues

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01

Entitlement to February 2013 wages despite suspension

Holding

Claimant entitled to Kshs.38,211.00 for February 2013

Reasoning

The suspension letter did not disentitle the claimant to wages already due for February 2013; the court fixed the award at the last gross pay for January 2013.

p. 3
02

Outstanding annual leave days

Holding

Claimant entitled to Kshs.42,190.90 for 42 outstanding leave days, not 48 as claimed

Reasoning

The respondent demonstrated by evidence that the outstanding leave days at suspension were 42; the court computed the daily rate from the basic pay of Kshs.22,100 for 24 working days in a typical month.

p. 3
03

Indefinite suspension for absconding duty

Holding

The indefinite suspension was unfounded and is lifted

Reasoning

The General Manager who wrote the suspension letter was not privy to the claimant's being on duty from 1.2.2013 to 18.2.2013. On a balance of probability the claimant's evidence that he worked and arranged an oral off was accepted.

p. 3
04

Re-engagement or compensation for unfair constructive termination

Holding

Claimant entitled to re-engagement effective 1.01.2014 or alternatively Kshs.458,532.00 under section 49(1)(c) of the Employment Act

Reasoning

The indefinite suspension was not a termination but conduct entitling the claimant to consider himself terminated. The court framed the alternative remedy: re-engagement or compensation of 12 months' gross salary at Kshs.38,211.00 per month.

p. 3
05

Wages for the period of suspension

Holding

Claimant entitled to Kshs.265,200.00 for March to December 2013

Reasoning

Applying its prior decision in the Timber Treatment case, an employee unfairly suspended carries a legitimate expectation to return to work and is entitled to at least partial reinstatement, i.e. salaries due during the suspension period, unless he took other gainful employment or failed to exculpate himself.

p. 4

Legal principles established

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  • An employee unlawfully or unfairly suspended is entitled to pay for the period kept away from work, absent other gainful employment or failure to exculpate

Court orders

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  1. 1.The respondent to pay the claimant Kshs.345,601.90
  2. 2.The respondent to reengage the claimant effective 1.01.2014 or in alternative to pay the claimant Kshs.458,532.00 for unfair constructive termination
  3. 3.The amounts to be paid by 1.2.2014, failing which interest is payable at court rates from the date of judgment
  4. 4.The respondent to pay costs of the suit

Authorities

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Legislation

  • Employment Actsection 49(1)(c)
  • Employment Actsubsection 49(4)(f)

Cases cited (1)

  • Kenya Union of Printing, Publishing, Paper Manufacturing and Allied Workers v Timber Treatment International
    Industrial Court Cause No. 12 of 2012 at Nakuru [2013]eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court (Employment Act, 2007, section 49(1)(c) applied)

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, "Richard Kisiang’ani Wepukhulu v Taidy’s Restaurant [2013] KEELRC 952 (KLR)", Case Analysis (2013). Industrial Court Cause No. 12 of 2013 (memorandum of claim filed 20.06.2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/952/eng@2013-12-20

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