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ELRCPartially AllowedCause No 135 of 2014· [2015] KEELRC 387 (KLR)

Steve Onyari Nyambegera v Bake ‘N’ Bite Mombasa Ltd [2015] KEELRC 387 (KLR)

Employment and Labour Relations Court
23 October 2015
1,998 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant sued the Respondent baker for unfair termination and/or wrongful dismissal, notice, leave and damages for lost prospective future earnings, having been dismissed in October 2013 after a suspension over allegations of integrity breaches, procedural non-adherence (use of excess yeast) and incitement of other employees. The Court identified four issues: commencement of employment, whether the claim was settled by payment of dues, whether the dismissal was unfair, and appropriate remedies. On commencement, the Respondent's failure to keep a written contract with a commencement date under sections 9 and 10 of the Employment Act, 2007 shifted the burden to it under section 10(7), so employment was held to have run from March 2010 to 29 October 2013. Procedurally, the termination complied with section 41: the Claimant was notified of allegations and heard at a meeting on 29 October 2013 with Union officials present. Substantively, the incitement allegation was not proved, but the excess-yeast transgression was. However, because the Respondent deducted Kshs 13,000/- for the damage and also terminated the Claimant on normal termination agreed with his Union, this constituted double punishment, rendering the termination substantively unfair. The Court awarded one month pay in lieu of notice (Kshs 13,206/-), leave balance difference (Kshs 15,565/-), and compensation of three months gross wages (Kshs 51,504/-), totalling Kshs 80,275/-. The claim for Kshs 6,624,288/- in lost prospective earnings was dismissed for want of evidential or legal basis, and each party was ordered to bear its own costs owing to the Claimant's late filings.

Key legal issues

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01

Commencement date of employment

Holding

Employment commenced in March 2010 and ended on 29 October 2013

Reasoning

The Respondent was obliged under section 9(2) of the Employment Act to draw a written contract with particulars under section 10, including the commencement date. Having failed to do so, section 10(7) placed on it the burden of disproving the Claimant's assertion of employment in 2010, which it did not discharge.

p. 2
02

Procedural fairness of the termination

Holding

The Respondent complied with section 41 requirements; procedural fairness was satisfied

Reasoning

The Claimant was notified of the allegations and afforded an opportunity to make representations at a face-to-face hearing on 29 October 2013, attended by Union officials and a Works Committee official. The unchallenged testimony of the Chief Shop Steward confirmed the hearing. The requirements of section 41 were thus met.

p. 3
03

Substantive fairness of the termination

Holding

The incitement allegation was not proved, but non-adherence to procedure (excess yeast) was proved; however the penalty was unfair as double punishment

Reasoning

The incitement allegation failed because the employees allegedly incited and the date of incitement were never disclosed. The excess yeast transgression was proved, but the Respondent both deducted the cost of the loss from the Claimant's dues and terminated his employment. Applying normal termination while also recovering the loss penalised him twice and was not in accord with justice and equity.

p. 4
04

Remedies

Holding

One month pay in lieu of notice (Kshs 13,206/-), leave balance difference (Kshs 15,565/40) and compensation equivalent of 3 months gross wages (Kshs 51,504/-) awarded; damages for lost prospective earnings declined

Reasoning

Because the penalty was normal termination, notice pay was due; the monthly pay of Kshs 13,206/- agreed with the Union was used as the measure since no evidence of working days was led. Leave records not produced, so the difference between the claimed entitlement and the Kshs 21,459/- actually paid was awarded. Compensation was discretionary, set at 3 months given about 4 years of service. No basis was laid for lost prospective earnings.

p. 4

Legal principles established

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  • An employee bears an initial, low-threshold burden of proving unfair termination under section 47(5) of the Employment Act, 2007
  • Where an employer fails to draw up a written contract with commencement date as required by sections 9 and 10 of the Employment Act, the employer bears the burden under section 10(7) of disproving the employee's asserted commencement date
  • Procedural fairness under section 41 requires the employee be informed of charges, given an opportunity to prepare and be heard, and have representations heard and considered before dismissal
  • Recovering the cost of loss from an employee and also terminating their employment amounts to double punishment and is substantively unfair

Court orders

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  1. 1.Respondent to pay the Claimant 1 month pay in lieu of notice of Kshs 13,206/-
  2. 2.Respondent to pay the Claimant leave balance of Kshs 15,565/-
  3. 3.Respondent to pay the Claimant compensation of Kshs 51,504/-
  4. 4.Total award of Kshs 80,275/-
  5. 5.Claim for damages for lost earnings dismissed
  6. 6.Each party to bear own costs

Authorities

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Legislation

  • Employment Act, 2007section 9(2)
  • Employment Act, 2007section 10
  • Employment Act, 2007section 10(7)
  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 45
  • Employment Act, 2007section 47(5)

Cases cited (1)

  • Antony Mkala Chitavi v Malindi Water & Sewerage Co. Ltd
    (2013) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

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, "Steve Onyari Nyambegera v Bake ‘N’ Bite Mombasa Ltd [2015] KEELRC 387 (KLR)", Case Analysis (2015). Cause No 135 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/387/eng@2015-10-23

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