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ELRCAllowedCause No. 107 of 2013 (consolidated with Cause No. 108 of 2013)· [2014] KEELRC 1070 (KLR)

Boniface Nyaga Njiru v Board Of Trustee Gichugu Water & Sanitation Trust [2014] KEELRC 1070 (KLR)

Industrial Court of Kenya
20 June 2014
655 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer who stops assigning work and paying salaries constructively dismisses employees and must compensate them, even without attending court.

What this practically means

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Executive summary

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Two consolidated causes (Nos. 107 and 108 of 2013) were brought by claimants employed by the respondent as plumbers, engaged in January 2005 and March 2007 respectively. From September 2012 the respondent ceased allocating them duties, stopped paying their salaries and allowances, and brought other persons to perform their duties. The claimants sought a declaration of their status - whether they remained employees or had been dismissed - and, if dismissed, compensation for wrongful and unfair dismissal together with terminal dues. The court framed the dispute as one of constructive dismissal, an unlawful and unfair termination where the employer's conduct entitles the employee to treat himself as wrongfully dismissed. Finding that the failure to allocate work and pay, coupled with the substitution of other workers, constituted repudiation of the employment contracts, the court held that the claimants had been constructively dismissed. Applying sections 43(1) and 45(1) of the Employment Act, the court noted that the respondent, though served, neither entered appearance nor filed any response, submissions or attendance at the hearing, and accordingly failed to discharge the statutory burden of proving reasons for termination. The terminations were declared unlawful and unfair. The court awarded each claimant one month's salary in lieu of notice and eight months' salary as compensation for unfair dismissal - Kshs. 12,920 and Kshs. 103,360 respectively for the claimant in Cause 107, and Kshs. 8,688 and Kshs. 69,504 (total Kshs. 78,192) for the claimant in Cause 108 - together with interest on the decretal sums and costs of the suit.

Key legal issues

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01

Whether the cessation of work allocation and salary payment amounted to constructive dismissal

Holding

The court held that the respondent's conduct amounted to constructive dismissal and that the claimants could not regard themselves as still in employment.

Reasoning

The court reasoned that employment relationships are contracts governed by contract law. By failing to allocate work, stopping salaries from September 2012, and bringing other persons to perform the same duties, the respondent repudiated the employment contract by conduct, entitling the claimants to treat themselves as wrongfully dismissed.

p. 2
02

Whether the terminations were unlawful and unfair under the Employment Act

Holding

The terminations were declared unlawful and unfair as the respondent, though served, failed to appear or prove reasons for termination.

Reasoning

Section 45(1) prohibits unfair termination and section 43(1) places the burden on the employer to prove the reasons for termination. The respondent, despite being served, neither entered appearance nor filed a response or submissions, and did not appear at the hearing. The court therefore deemed the reasons unproved and declared the terminations unlawful and unfair.

p. 2

Legal principles established

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  • Constructive dismissal occurs where the employer's conduct entitles the employee to treat himself as wrongfully dismissed.
  • Under section 43(1) of the Employment Act, the employer must prove the reasons for termination, failing which the termination is deemed unfair under section 45.
  • Failure to allocate work and pay salaries, while engaging others to perform the same duties, constitutes constructive dismissal.

Court orders

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  1. 1.Declaration that the claimants' terminations were unlawful and unfair (constructive dismissal)
  2. 2.Award to Boniface Nyaga Njiru of one month's salary in lieu of notice (Kshs. 12,920) and 8 months' salary as compensation for unfair dismissal (Kshs. 103,360)
  3. 3.Award to the claimant in Cause No. 108 of one month's salary in lieu of notice (Kshs. 8,688) and 8 months' salary as compensation for unfair dismissal (Kshs. 69,504; total 78,192)
  4. 4.Interest on the decretal sum to both claimants
  5. 5.Costs of the suit to the claimants

Authorities

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Legislation

  • Employment Actsection 45(1)
  • Employment Actsection 43(1)
  • Employment Actsection 45
Jurisdiction invoked
Employment and labour relations jurisdiction (Employment Act; termination of employment claims)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Boniface Nyaga Njiru v Board Of Trustee Gichugu Water & Sanitation Trust [2014] KEELRC 1070 (KLR)", Case Analysis (2014). Cause No. 107 of 2013 (consolidated with Cause No. 108 of 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1070/eng@2014-06-20

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