Florence Ndinda Muthoka v East African Growers Limited [2014] KEELRC 733 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant was a casual or seasonal employee
The Claimant was a regular employee despite being engaged on an on-and-off daily basis
The relationship lasted 12 years from 1997 to 2009, and the Respondent conceded its horticultural packaging and export business runs throughout the year. The term 'seasonal' could only apply to farms supplying the Respondent, not to employees of a business operating continuously. Section 37 of the Employment Act deems casual employment of sufficient duration to be monthly employment, and the Court may declare regular terms under Section 37(4).
Whether the summary dismissal was fair and justified
Termination was unfair - no valid reason and no fair procedure
The Respondent acted on the wrong premise that the Claimant was casual or seasonal, so it saw no need to justify termination or act fairly. Having found the Claimant to be a regular employee, the Court held the termination failed the requirements of Sections 41, 43 and 45 of the Employment Act 2007, entitling the Claimant to compensation and terminal benefits.
Entitlement to terminal benefits and compensation
Claimant awarded notice pay, service pay, leave pay and 3 months' compensation
One month's salary in lieu of notice at Kshs. 9,100 was granted. Service pay at 15 days' salary per completed year for 12 years totalled Kshs. 63,000, the Respondent not showing any pension scheme. Leave pay of 21 days per year for 12 years totalled Kshs. 88,200. Compensation was capped at 3 months' salary (Kshs. 27,300) rather than the 12 months sought.
Legal principles established
#- An employment relationship lasting many years, even if intermittent within a week, cannot be characterised as casual or seasonal where the employer's business operates continuously throughout the year
- Under Section 37 of the Employment Act 2007, a casual employee working the equivalent of one month or more, or performing work not completable within three months, is deemed employed on monthly terms, and the Court may vary terms and declare regular employment
- Once an employee is found to be a regular employee, termination must be supported by valid reason and fair procedure under Sections 41, 43 and 45 of the Employment Act 2007
Court orders
#- 1.Declaration that termination of the Claimant's contract was unfair
- 2.Respondent to pay the Claimant one month salary in lieu of notice at Kshs. 9,100
- 3.Respondent to pay three months' salary in compensation at Kshs. 27,300
- 4.Respondent to pay service pay at Kshs. 63,000
- 5.Respondent to pay leave pay of Kshs. 88,200 - total Kshs. 187,600
- 6.Full amount to be paid by the Respondent to the Claimant within 30 days of delivery of the Award
- 7.No order on costs
- Jurisdiction invoked
- Industrial Court jurisdiction under the Employment Act 2007 over unfair and unlawful termination (Labour Relations Act dispute - termination of employment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Florence Ndinda Muthoka v East African Growers Limited [2014] KEELRC 733 (KLR)", Case Analysis (2014). Cause Number 1777 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/733/eng@2014-01-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.