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ELRCPartially AllowedCause Number 1295 of 2011· [2014] KEELRC 248 (KLR)

Anastas Fukwo Lusweti v Navisat Telematics Limited [2014] KEELRC 248 (KLR)

Industrial Court of Kenya
18 September 2014
1,127 words in judgment
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The bottom line

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A Kenyan court ruled the worker's firing was unfair because the employer couldn't prove its reasons, awarding him Kshs. 198,215.

What this practically means

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Executive summary

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The Claimant, employed as a Technician on an oral contract in June 2011 at a monthly salary of Kshs. 35,196, sued the Respondent for unfair and unlawful termination, alleging he was dismissed without warning, notice, reason or terminal dues, and branded a criminal by the Respondent's CEO. He sought compensation for unfair termination, remission of N.S.S.F and N.H.I.F contributions, two months' notice pay, house rent allowance, the balance of his January 2011 salary and a certificate of service. The Respondent, though served, did not attend the hearing on 22nd July 2014; its Statement of Response alleged the Claimant had been convicted of carjacking and deserted work in mid-January 2011, but this was unsupported by any evidence. Rika J held that under Sections 43 and 45 of the Employment Act 2007 the employer bore the duty of proving valid and fair reasons for termination, and bare statements in the Response could not discharge that duty. On the unchallenged evidence of the Claimant, the Court found Sections 41, 43 and 45 were disregarded and awarded three months' salary as compensation. The Court also awarded house rent allowance at 15% of basic salary for 8 months under Section 31, one month's notice pay under Sections 35(1)(c) and 36, the balance of January 2011 salary, and ordered the immediate release of the Certificate of Service under Section 51. The claim for refund of statutory deductions was rejected for want of evidence of non-remission. Total award: Kshs. 198,215, with no order on costs and interest.

Key legal issues

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01

Unfair termination - burden of proof

Holding

Termination was unfair as the employer disregarded Sections 41, 43 and 45 of the Employment Act and failed to prove valid and fair reasons

Reasoning

The Respondent alleged the Claimant had been convicted of carjacking and deserted work, but did not attend the hearing or support its assertions with evidence. The Claimant's unchallenged evidence was that he was terminated without warning, notice or reason. The Court found the employer disregarded the procedural and substantive fairness requirements of the Employment Act, and awarded the maximum-scale compensation of 3 months' salary under Section 49.

p. 2
02

House rent allowance

Holding

Claimant entitled to arrears of house rent allowance at 15% of basic salary for 8 months (Kshs. 42,235)

Reasoning

The pay slips captured only basic salary of Kshs. 35,196 with no house rent allowance, and the employer did not provide housing at or near the workplace. Section 31 of the Employment Act therefore obliged the employer to pay house rent allowance in addition to basic salary, computed at 15% of the basic salary for the 8 months of service.

p. 2
03

Desertion and balance of January 2011 salary

Holding

Desertion not proved; Claimant awarded the balance of January 2011 salary

Reasoning

The Respondent asserted in its Statement of Response that the Claimant deserted work around 15th January 2011 after being asked to prove his acquittal of a carjacking charge. However, the Respondent did not attend the hearing and adduced no evidence. In the absence of proof of desertion, the Claimant's unchallenged claim for the unpaid balance of his January salary was granted.

p. 3
04

Certificate of service

Holding

Respondent to issue the Certificate of Service forthwith

Reasoning

Under Section 51 of the Employment Act 2007, every employee with at least 4 weeks of service is entitled to a certificate of service. The Claimant worked 8 months, so the entitlement was established and the Respondent was ordered to release the certificate immediately.

p. 3
05

Notice pay

Holding

1 month's salary in lieu of notice awarded under Section 35(1)(c) and 36 of the Employment Act

Reasoning

The Claimant sought 2 months' notice pay but produced no contract, wage order, collective agreement or policy justifying that figure. The Court applied the statutory default in Section 35(1)(c) and 36 of the Employment Act 2007, awarding one month's basic salary of Kshs. 35,196 in lieu of notice.

p. 2

Legal principles established

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  • It is the employer's duty to prove valid and fair reasons for termination; bare unsupported statements in a Statement of Response do not discharge this burden, particularly where the employer fails to attend the hearing
  • Where an employer does not provide reasonable housing accommodation at or near the place of work, it is obliged to pay house rent allowance in addition to basic salary

Court orders

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  1. 1.Declaration that termination of the Claimant's contract of employment was unfair
  2. 2.Respondent to pay within 30 days: 3 months' salary compensation Kshs. 105,588; 1 month notice pay Kshs. 35,196; house rent allowance arrears Kshs. 42,235; balance of January 2011 salary Kshs. 15,196 - total Kshs. 198,215
  3. 3.Respondent to avail the Claimant his Certificate of Service forthwith
  4. 4.No order on costs and interest

Authorities

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Legislation

  • Employment Act 2007Sections 31, 35(1)(c), 36, 41, 43, 45, 49 (compensation), 51
Jurisdiction invoked
Reference to the Industrial Court under the Employment Act 2007 and the Labour Institutions Act (dispute of unfair and unlawful termination filed as Cause 1295 of 2011)

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, "Anastas Fukwo Lusweti v Navisat Telematics Limited [2014] KEELRC 248 (KLR)", Case Analysis (2014). Cause Number 1295 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/248/eng@2014-09-18

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