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ELRCPartially AllowedCause No. 101 of 2012 (consolidated with Cause No. 102 of 2012)· [2014] KEELRC 1291 (KLR)

Mary Nafula Ingati v Ruth Hankel Martha & another [2014] KEELRC 1291 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
11 August 2014
2,149 words in judgment
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The bottom line

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A Kenyan court ruled that sacking domestic workers on suspicion, without notice or a hearing, was unfair and awarded them compensation and long-service gratuity.

What this practically means

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Executive summary

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Two consolidated employment causes (Nos. 101 and 102 of 2012) brought by mother and daughter, Mary Nafula Ingati and Lizz Namarome Muchanga, who worked as domestic workers for a married couple (the Respondents) at their Karen residence. The 1st Claimant served for 23 years and the 2nd for 9 years, both without written contracts, payslips or NSSF registration. They were summarily dismissed verbally - the 1st in May 2011 on suspicion of involvement in a loss of money, and the 2nd by sms message shortly afterwards. Both claimed terminal benefits and compensation for unlawful and unfair dismissal. The Respondents admitted the employment but asserted the Claimants deserted their jobs, and that the 1st Claimant was paid Kshs.400,000/= on 3rd December 2011 in full settlement. The Respondents called no witness and produced no documentary evidence. The court found the claims proved on a balance of probability, save for portions withdrawn during testimony (weekly rest days, public holidays, NSSF contributions) and portions beyond the six-year limitation period. It held the dismissals were not for a valid reason and that no procedure was observed, violating Sections 43 and 45 of the Employment Act, and awarded each Claimant ten months' salary compensation under Section 49(1)(c), plus gratuity at 15 days' salary per completed year, one month's leave pay, one month's notice pay and arrears of salary - Kshs.294,000/= for the 1st Claimant and Kshs.210,000/= for the 2nd. Interest at court rates was awarded from the dates of dismissal; the Respondents were ordered to pay costs and issue certificates of service.

Key legal issues

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01

Whether the summary dismissals were for a valid reason and with due procedure

Holding

The dismissals were not for a valid reason and no procedure was observed; they were procedurally unfair and violated Sections 43 and 45 of the Employment Act

Reasoning

The Respondents dismissed the Claimants on mere suspicion of theft without any investigation, notice or hearing. The court did not believe that long-serving employees who had worked diligently for 23 and 9 years could suddenly become thieves. The Respondents also had an ulterior motive of denying the 1st Claimant long-service gratuity, having never invested in a pension scheme or registered the Claimants with NSSF.

p. 4
02

Entitlement to severance pay/gratuity

Holding

Both Claimants, not registered with NSSF and not paid severance, were entitled to gratuity at 15 days salary per completed year of service

Reasoning

The court found the Claimants were not registered with NSSF and received no severance on termination, and awarded gratuity at 15 days salary per year for 23 and 9 years respectively. The Respondents' payment of Kshs.400,000/= to the 1st Claimant on 3rd December 2011 was not proved by any evidence, as the Respondents called no witness and produced no documentary evidence in rebuttal.

p. 4
03

Quantum of compensation for unfair dismissal

Holding

Ten months' salary compensation awarded to each Claimant under Section 49(1)(c)

Reasoning

In exercising discretion under Section 49(1)(c), the court considered the length of service (23 and 9 years), the fact that the Respondents never increased the Claimants' salaries, and never invested in any pension scheme or registered them with NSSF, conduct it found detrimental to their welfare, and the summary dismissal on mere suspicion without notice.

p. 5
04

Evidentiary burden where Respondents adduce no evidence

Holding

Claims proved on a balance of probability where unchallenged, save for withdrawn claims and time-barred portions

Reasoning

The Respondents did not call any witness and produced no documentary evidence in rebuttal. The court held that, other than claims withdrawn during testimony and portions exceeding the six-year limitation period, the claims as set out in the statements of claim were proved on a balance of probability.

p. 4

Legal principles established

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  • Summary dismissal on mere suspicion without notice and without valid reason or procedure is procedurally unfair under the Employment Act
  • An employee dismissed without valid reason or procedure is entitled to compensation under Section 49(1)(c) of the Employment Act

Court orders

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  1. 1.1st Claimant awarded Kshs.294,000/= comprising gratuity/severance pay Kshs.138,000/=, one month salary in lieu of leave Kshs.12,000/=, one month salary in lieu of notice Kshs.12,000/=, ten months salary compensation Kshs.120,000/= and salary for May Kshs.12,000/=
  2. 2.2nd Claimant awarded Kshs.210,000/= comprising gratuity/severance pay Kshs.54,000/=, one month salary in lieu of leave Kshs.12,000/=, one month salary in lieu of notice Kshs.12,000/=, ten months salary compensation Kshs.120,000/= and salary for November Kshs.12,000/=
  3. 3.The 1st and 2nd Respondents jointly and severally to pay the respective awards with interest at court rates from the dates of dismissal until payment in full
  4. 4.Respondents to pay the costs of the suit
  5. 5.Respondents to provide certificates of service to the 1st and 2nd Claimants
  6. 6.Claims for payment of untaken rest days, public holidays and NSSF contribution dismissed

Authorities

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Legislation

  • Employment ActSection 43
  • Employment ActSection 45(1) and 2(a) and (e)
  • Employment ActSection 49(1)(c)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Sections 43, 45(1) and 2(a) and (e), 49(1)(c))

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, "Mary Nafula Ingati v Ruth Hankel Martha & another [2014] KEELRC 1291 (KLR)", Case Analysis (2014). Cause No. 101 of 2012 (consolidated with Cause No. 102 of 2012). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1291/eng@2014-08-11

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