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ELRCPartially AllowedCause No 164 of 2013· [2014] KEELRC 1101 (KLR)

Miruka Mitema Ronald v Swahili Beach Resort [2014] KEELRC 1101 (KLR)

Employment and Labour Relations Court
27 June 2014
1,335 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled Swahili Beach Resort unfairly sacked its guard because it gave no notice or reasons, and ordered modest compensation.

What this practically means

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Executive summary

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The Claimant, a security guard employed by the Respondent from 25 August 2008 on a three-month oral contract terminable by 28 days' notice, had his services terminated on 12 July 2011 by a letter that gave no reasons. He claimed unfair termination and various dues, appearing in person. The Respondent, through its Human Resources Manager who joined after the termination, contended the termination was lawful and that the Claimant was offered one month's pay in lieu of notice, 10 days' July 2011 wages and 16 pending leave days but declined them. The Court framed two issues: whether the termination was unfair and the appropriate remedies. It held the Claimant, being paid monthly, was entitled to written notice under section 35(1)(c) of the Employment Act and had discharged his burden under section 47(5). The termination letter gave no reasons and disclosed no hearing, so the termination was procedurally unfair; the Respondent also failed to prove any valid and fair reason, making it substantively unfair. On remedies, the Court awarded one month's pay in lieu of notice, 16 pending leave days, July 2011 wages, 27 public holidays at Kshs 9,346/-, and two months' gross wages as compensation under section 49(1)(c), totalling Kshs 42,946/-. Claims for NSSF contributions, service pay and leave travelling allowance were dismissed for lack of evidentiary basis and statutory bar. Delivered in Mombasa on 27 June 2014 by Radido Stephen, Judge.

Key legal issues

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01

Procedural fairness of the termination

Holding

The termination was procedurally unfair as no notice was given and the termination letter gave no reasons or opportunity to be heard.

Reasoning

The Claimant was paid monthly and thus entitled to written notice under section 35(1)(c). No notice was given, so he discharged his burden under section 47(5). The Respondent then had to show a fair procedure under section 45(2)(c). The termination letter of 12 July 2011 gave no reasons and was silent on whether the Claimant was heard, so the Respondent failed to discharge that burden.

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02

Substantive fairness of the termination

Holding

The termination was substantively unfair because the Respondent gave and proved no reasons for it.

Reasoning

Sections 43, 45 and 47(5) require the employer to prove the reasons for termination and that they are valid and fair. The Respondent gave no reasons in pleadings or testimony and made no attempt to prove any reason. The Court could not tell from the letter whether the termination was for misconduct, poor performance or incapacity, and concluded the termination was substantively unfair.

p. 2
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Remedies for unfair termination

Holding

Notice pay, accrued leave, wages for days worked, 27 public holidays and two months' gross wages as compensation were awarded; service pay, NSSF and leave travelling allowance claims were declined.

Reasoning

Notice pay flows from section 36. Service pay was barred by section 35(6) given NSSF membership. Accrued leave of 16 days was awarded as the employer failed to produce records. Wages for July 2011 are due as of law. Public holiday pay was assessed at 27 days on a balance of probabilities. Compensation of two months' gross wages considered length of service (about two and a half years) and expenses incurred.

p. 3

Legal principles established

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  • An employee paid monthly is entitled to written notice of termination under section 35(1)(c) of the Employment Act; failure to give notice discharges the employee's burden under section 47(5).
  • Once an employee shows a prima facie case of unfair termination, the employer bears the burden of proving a fair procedure and valid and fair reasons for termination.
  • It is the duty of employers to keep employment records, and failure to produce them means the benefit of doubt goes to the employee.
  • Compensation for unfair termination under section 49(1)(c) is discretionary and guided by the factors in section 49(4).

Court orders

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  1. 1.One month pay in lieu of notice of Kshs 9,000/-
  2. 2.16 pending leave days at Kshs 3,300/-
  3. 3.Salary for July 2011 at Kshs 3,300/-
  4. 4.27 days public holidays at Kshs 9,346/-
  5. 5.Two months' compensation for unfair termination at Kshs 18,000/-
  6. 6.Total award of Kshs 42,946/-
  7. 7.Travelling and subsistence costs of Kshs 3,500/- (per 20 March 2014 order) to be paid if not already paid
  8. 8.Claims for National Social Security Fund and leave and leave travelling allowance dismissed

Authorities

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Legislation

  • Employment Actsection 35(1)(c)
  • Employment Actsection 35(6)
  • Employment Actsection 36
  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 45(2)(c)
  • Employment Actsection 47(5)
  • Employment Actsection 49(1)(c)
  • Employment Actsection 49(4)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment claim); no specific constitutional provision cited

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, "Miruka Mitema Ronald v Swahili Beach Resort [2014] KEELRC 1101 (KLR)", Case Analysis (2014). Cause No 164 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1101/eng@2014-06-27

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