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ELRCPartially AllowedCause Number 1242 of 2011· [2014] KEELRC 251 (KLR)

Christine Nanjala Simiyu & another v Vegpro [K] Limited [2014] KEELRC 251 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
17 September 2014
2,140 words in judgment
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The bottom line

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Kenya's Employment Court confirmed workers engaged as 'casuals' for over a month become regular employees entitled to fair treatment and compensation.

What this practically means

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Executive summary

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Two packers, Christine Nanjala Simiyu and Annah Juma Omondi, sued Vegpro [K] Limited for unfair and unlawful termination of their employment at its horticultural export factory in Nairobi, seeking one month's salary in lieu of notice, unpaid leave for the whole employment period, service pay at 18 days' salary per year worked, costs, interest, and a declaration that termination was unlawful and unfair. The Respondent conceded employing them but as casuals who worked intermittently, alleging they left of their own volition. Rika J held that under Section 37 of the Employment Act 2007, an employee who works continuously for more than one month ceases to be a casual; the parties' own characterization of the relationship was irrelevant, and the Claimants, who worked cumulatively for years for a year-round operation, should have been converted into regular employees entitled to the Act's minimum standards. The Court found the Respondent did not establish a valid and fair reason for termination, did not follow fair procedure, and failed to prove desertion, noting its inconsistent explanations of illness and desertion. Annual leave pay and service pay were awarded at three-quarters of the years claimed, a formula adopted for fairness rather than as a legal principle. By its orders of 17th September 2014 the Court declared both Claimants regular employees whose contracts were terminated unfairly, and awarded the 1st Claimant Kshs. 125,811 and the 2nd Claimant Kshs. 164,986, payable within 30 days, with no order on costs and interest.

Key legal issues

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01

Conversion of casual employment to regular employment

Holding

The Claimants, though engaged and paid daily as casuals, worked cumulatively for years and should have been converted into regular employees with full statutory benefits

Reasoning

The Court applied its consistent line of decisions under Section 37 of the Employment Act 2007, holding that the parties' characterization of the relationship as casual is not controlling. The Respondent operated year-round, recalling workers when production peaked, so the Claimants served cumulatively for years. Their contracts should have followed the minimum standards under Part V and termination under Part VI of the Employment Act.

p. 3
02

Fairness of termination

Holding

Termination was unfair; the Respondent did not show a valid and fair reason or follow fair procedure, and failed to prove the alleged desertion

Reasoning

The Respondent asserted both illness and desertion as grounds, which the Court found irreconcilable. The HR witness joined after the Claimants left and the records he relied on did not show desertion. The Claimants were not given notice, hearing, or valid reasons as required under Sections 41 and 45 of the Employment Act 2007, entitling them to notice pay and compensation.

p. 4
03

Quantification of service pay and annual leave

Holding

Service pay and annual leave pay awarded at three-quarters of the years claimed, reflecting intermittent attendance

Reasoning

The Court took into account that the Claimants were not in employment for the full aggregate years, being off duty at times depending on volume of work. The three-quarters formula was adopted for fairness and not as a principle or requirement of law. In fixing service pay, the Court also considered the eroding purchasing power of the statutory minimum.

p. 4

Legal principles established

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  • An employee who works cumulatively for more than one month ceases to be a casual employee and is converted to a regular employee under Section 37 of the Employment Act 2007
  • The parties' characterization of the employment relationship is not decisive; the Court has discretion under Section 37 to treat a person engaged as a casual as a regular employee

Court orders

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  1. 1.It is declared the 1st and 2nd Claimants were in regular employment and their contracts were terminated unfairly
  2. 2.The Respondent shall pay to the Claimants within 30 days of the delivery of this Award
  3. 3.Christine Nanzala Simiyu: 1 month in lieu of notice at Kshs. 9,150; 18 days' salary for 4.5 years of service at Kshs. 28,505; 94.5 days of annual leave at Kshs. 33,256; 6 months' salary in compensation for unfair termination at Kshs. 54,900 - Total Kshs. 125,811
  4. 4.Annah Juma Omondi: 1 month salary in lieu of notice at Kshs. 9,150; 18 days' salary for 7.5 years of service at Kshs. 45,509; 157.5 days of annual leave at Kshs. 55,427; 6 months' salary in compensation for unfair termination at Kshs. 54,900 - Total Kshs. 164,986
  5. 5.No order on the costs and interest

Authorities

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Legislation

  • Employment ActSection 37
  • Employment ActSection 35
  • Employment ActSection 36
  • Employment ActSection 40
  • Employment ActSection 41
  • Employment ActSection 45
  • Employment Act 2007Part V
  • Employment Act 2007Part VI

Cases cited (3)

  • Margaret Anyango v. Vegpro Kenya Limited
  • Florence Muli & Another v. Vegpro Limited
  • Agatha Bugosi Saidi v. Vegpro Kenya Limited
    [2014] e-KLR
Jurisdiction invoked
Original jurisdiction of the Industrial Court over employment disputes (Industrial Court Act); Employment Act 2007

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, "Christine Nanjala Simiyu & another v Vegpro [K] Limited [2014] KEELRC 251 (KLR)", Case Analysis (2014). Cause Number 1242 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/251/eng@2014-09-17

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