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ELRCPartially AllowedCause No. 393 of 2013· [2014] KEELRC 64 (KLR)

Benson Omuyonga v Laxmanbhai Construction Ltd [2014] KEELRC 64 (KLR)

Industrial Court of Kenya
5 December 2014
JRJames Rika
2,007 words in judgment
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The bottom line

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Kenya's Industrial Court ruled that a construction worker's job ends when the project ends, so no compensation for unfair termination was owed.

What this practically means

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Executive summary

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The Claimant, a General Labourer, sued Laxmanbhai Construction Ltd alleging unfair and unlawful termination of his employment on 22nd July 2013, seeking a declaration of unlawfulness, pro-rata leave pay of Ksh.13,039, 12 months' salary compensation totalling Ksh.176,319, a Certificate of Service, and costs. He claimed he was injured at work on 16th May 2013, that the Respondent confiscated his medical records and compelled him to sign a blank voucher, and that he was never issued a redundancy notice. The Respondent, a construction company, responded that the Claimant was engaged on the Vipingo Project in September 2012, that the Project ended in mid-July 2013, that he was issued a redundancy notice offering pro-rata leave and one month's notice pay, and that he refused to sign and deserted. It counter-claimed one month's notice pay. The court found the Claimant first worked from February 2008, resigned in 2012 citing domestic obligations, and was recalled for 10 months until the Project ended. As a Project Employee in an industry where contracts run for the duration of a Project, his contract lapsed with the Project's completion. The court found no link between the injury and voucher incidents and the alleged termination, and found the Respondent willing to re-employ him. The claims for notice pay, compensation and pro-rata leave were declined, as was the Counter-Claim. Only the Certificate of Service was ordered. Judgment delivered on 5th December 2014 by James Rika J.

Key legal issues

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01

Whether termination was unfair and unlawful

Holding

Not unfair or unlawful; the Claimant left employment voluntarily at the end of the Project

Reasoning

The Claimant was a Project Employee whose contract was tied to the completion of the Vipingo Project. He had earlier resigned and been recalled. He was offered terminal dues on a redundancy basis but refused to sign the notice and left. The Respondent indicated willingness to re-employ him, and the court found no unfairness. The claimed injury and blank voucher incidents were not linked to the termination.

p. 4
02

Whether the pro-rata leave claim was justified

Holding

Declined

Reasoning

The Service Record Card showed the Claimant took 25 days off-duty between November 2012 and June 2013, exceeding any pro-rata entitlement in the 10-month period of re-employment.

p. 4
03

Whether the Respondent's Counter-Claim for notice pay could succeed

Holding

Rejected

Reasoning

The Claimant left in the last month of the Project; both parties knew completion of the Project would end mutual obligations, so ordering notice pay would serve no purpose.

p. 5

Legal principles established

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  • In the construction industry, employment contracts are tied to the duration of a Project and lapse upon its completion; absent premature termination, no notice or notice pay is justifiable

Court orders

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  1. 1.The Respondent shall release the Claimant's Certificate of Service to him forthwith
  2. 2.Other prayers in the Claim and the Counter-Claim are rejected

Authorities

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Legislation

  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)
Jurisdiction invoked
Rule 27(1)(a) of the Industrial Court (Procedure) Rules 2010; jurisdiction over unfair and unlawful termination dispute

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Benson Omuyonga v Laxmanbhai Construction Ltd [2014] KEELRC 64 (KLR)", Case Analysis (2014). Cause No. 393 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/64/eng@2014-12-05

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