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ELRCPartially AllowedCause No. 533 of 2013· [2014] KEELRC 1396 (KLR)

Jonathan M Mwandime v Banbros Limited [2014] KEELRC 1396 (KLR)

Industrial Court of Kenya at Nairobi
7 November 2014
1,460 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan worker fired after joining a union won about Kshs.268,000 plus costs, but claims he couldn't prove were dismissed.

What this practically means

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Executive summary

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The Claimant, a welder and fitter employed by the Respondent from 15th November 2000 (per his testimony) until termination on 28th January 2012, sued for terminal benefits, overtime, house allowance and 12 months' salary as compensation for what he alleged was victimization and discrimination for joining the Transport and Allied Workers Union. The Respondent, though served, filed no appearance or defence and did not attend the hearing, so the claim proceeded undefended. The court found the employment relationship proved through a letter from the Respondent's accountant and treated the Claimant's testimony as uncontested. It awarded notice pay of Kshs.13,000/= (based on the Respondent's own offer), one week's unpaid salary of Kshs.3,000/=, leave of Kshs.15,166.70, leave travelling allowance of Kshs.3,400/=, house allowance of Kshs.46,200/= for 14 months, service pay of Kshs.7,500/=, and 12 months' salary as compensation of Kshs.180,000/=, holding the termination procedurally and substantively unfair and a breach of the constitutional right to freedom of association. However, it dismissed the claims for underpayments (failure to prove engagement as Artisan Grade III), NHIF deductions (no proof of non-remittance) and overtime (the handwritten hours tabulation was rejected as unverified). The Respondent was ordered to pay the Claimant's costs, with interest on the award at court rates from the date of judgment.

Key legal issues

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01

Whether the Claimant was an employee of the Respondent

Holding

The court found an employment relationship existed, confirmed by the Respondent's own accountant's letter

Reasoning

With no appearance or defence filed, the court relied on the Claimant's uncontroverted testimony and a letter dated 3rd April 2013 from the Respondent's accountant Mr. J. Singh, which confirmed the employment. The letter also contained an offer to pay notice and other dues, which the court used as a benchmark in quantifying some awards.

p. 2
02

Whether the termination was unfair and what compensation is due

Holding

Termination was unfair both procedurally and without valid reason; 12 months' salary awarded as compensation because the ground was union membership, a breach of the constitutional right to freedom of association

Reasoning

The Claimant testified he was told there was no work after he was seen at a union meeting, and the Respondent ignored letters from the Union and the Labour Officer. The court was satisfied the termination was procedurally and substantively unfair. Despite only 14 months of service, the maximum 12 months' compensation was awarded because dismissal for union membership infringed a fundamental constitutional right.

p. 4
03

Whether the Claimant proved the CBA-based claims (underpayment as Artisan Grade III and overtime)

Holding

Both claims failed for want of proof; the Claimant proved only that he earned Kshs.12,000/= per month and the handwritten overtime records were rejected

Reasoning

Although the Claimant held a Trade Test Certificate for Artisan Grade III, there was no evidence he was actually engaged at that grade, so the higher CBA rate could not be applied. Similarly, the handwritten tabulation of overtime hours, all in the same writing and not shown to be an extract from the Respondent's records, could not sustain the overtime claim.

p. 2

Legal principles established

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  • In the absence of a defence, uncontroverted testimony stands unchallenged
  • Compensation for unfair termination is payable only where termination is shown to be unfair
  • Termination on account of union membership breaches the constitutional right to freedom of association and justifies compensatory awards
  • A party who alleges wage deductions must prove them, including by obtaining a certificate from the relevant body

Court orders

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  1. 1.Award of Kshs.13,000/= payment in lieu of notice based on the Respondent's offer
  2. 2.Award of Kshs.3,000/= being salary for 1 week worked
  3. 3.Award of Kshs.15,166.70 being leave for 30.3 days at Kshs.500/= per day
  4. 4.Award of Kshs.3,400/= leave travelling allowance for one year
  5. 5.Award of Kshs.46,200/= house allowance for 14 months
  6. 6.Award of Kshs.7,500/= service pay for one year
  7. 7.Award of Kshs.180,000/= being 12 months' salary as compensation for unfair termination
  8. 8.Respondent to pay the Claimant's costs of the case
  9. 9.Amount awarded to attract interest at court rates from the date of judgment

Authorities

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Legislation

  • Constitution of Kenya, 2010Freedom of association
Jurisdiction invoked
Referral of a labour dispute by the Labour Officer to the Industrial Court of Kenya under the Labour Relations Act framework

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, "Jonathan M Mwandime v Banbros Limited [2014] KEELRC 1396 (KLR)", Case Analysis (2014). Cause No. 533 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1396/eng@2014-11-07

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