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ELRCPartially AllowedCause No 2564 of 2012· [2015] KEELRC 566 (KLR)

James Mutembei v Landmark Holdings Limited [2015] KEELRC 566 (KLR)

Employment and Labour Relations Court of Kenya
10 July 2015
1,528 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that a worker called an 'apprentice' without written approval was actually an employee, awarding him Kshs. 184,044 for underpayment and unfair termination.

What this practically means

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Executive summary

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The claimant sued the respondent alleging he was employed as a cleaner from 10th August 2004 to 12th November 2012, was underpaid, denied leave, denied housing or house allowance, and was unfairly terminated without notice. The respondent asserted that the claimant joined as an apprentice, was only formally employed in September 2011, was not entitled to salary, leave or NSSF contributions during the apprenticeship, and absconded duty in November 2012. The respondent called no oral evidence after repeated adjournments, and the Court ordered the matter concluded on the evidence on record. The court framed three issues: the claimant's status in 2004, whether statutory obligations were breached, and how far back compensation could reach. Applying section 6 of the Industrial Training Act, the court held that since the respondent never obtained the Director General's written permission, the claimant was not an apprentice but a general worker. The relationship being continuous and long-term, he was a regular employee entitled to leave and other benefits. The underpayment claim, being a continuing injury under section 90 of the Employment Act, was filed within 12 months of cessation. On termination, the respondent produced no evidence of contacting the claimant to show cause over the alleged absconding, so the court assumed termination as alleged and found it unfair. The court awarded Kshs.184,044.52 - one month's pay in lieu of notice, underpayments from 2004 to 2012, leave, service pay for six years, and six months' salary for unfair termination (rather than the twelve months sought) - and ordered issuance of a certificate of service.

Key legal issues

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01

Status of the claimant - apprentice or employee from 2004

Holding

The claimant was not an apprentice within the meaning of section 6 of the Industrial Training Act since the respondent never obtained the written permission of the Director General; he was a general worker/employee

Reasoning

Section 6 of the Industrial Training Act prohibits employing an apprentice without prior written permission of the Director General. The respondent produced no such permission. Skills training promised to the claimant may have been a benefit of his work but did not confer apprenticeship status. He was therefore an employee from 2004.

p. 3
02

Underpayment and statutory obligations (leave, housing/allowance)

Holding

The claimant was underpaid relative to the General Wages Order and denied leave; being a continuous relationship, he was entitled to benefits of a regular employee

Reasoning

The claimant's earnings fell below the General Wages Order throughout the engagement, totaling Kshs.61,942.92 in underpayments. He was not allowed leave. Because the relationship was continuous and long, he could not be a casual employee and was entitled to leave, overtime and other benefits of a regular employee.

p. 3
03

Limitation for the underpayment claim

Holding

The underpayment claim was within time as it was filed within 12 months of cessation of the underpayments

Reasoning

Underpayment is a continuing injury which must be brought within 12 months of cessation under section 90 of the Employment Act. Employment ended in September 2012 and the suit was filed in December 2012, hence within the statutory period.

p. 3
04

Fairness of the termination

Holding

The termination was unfair; the respondent failed to prove the alleged absconding or to give the claimant an opportunity to show cause

Reasoning

The respondent alleged the claimant absconded duty but produced no evidence of any attempt to contact him to show cause, nor circumstances indicating he was not returning to work. The Court therefore assumed the services were terminated as the claimant alleged and awarded compensation.

p. 3

Legal principles established

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  • No person may employ an apprentice without first obtaining the written permission of the Director General under section 6 of the Industrial Training Act; without such permission, the purported apprentice is in law not an apprentice
  • Underpayment is a continuing injury which must be brought within 12 months of cessation, per section 90 of the Employment Act
  • An employee engaged continuously over a long period ceases to be a casual employee and may only be terminated in accordance with the Employment Act as a regular employee
  • Where an employer alleges absconding but produces no evidence of an attempt to contact the employee to show cause, the court may assume the employee's services were terminated as alleged

Court orders

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  1. 1.Award to the claimant of Kshs.184,044.52 comprising one month's pay in lieu of notice (Kshs.8,579.80), underpayments from 2004-2012 (Kshs.61,942.92), leave (Kshs.39,543.00), service pay at 15 days' salary for each complete year from 2004 to 2010 (Kshs.22,500.00) and six months' salary for unfair termination (Kshs.51,478.80)
  2. 2.The respondent shall issue the claimant with a certificate of service

Authorities

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Legislation

  • Employment Actsections 9, 10, 90
  • Industrial Training Actsections 6, 11, 19, 21
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Industrial Training Act (specific enabling article not cited in the judgment)

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, "James Mutembei v Landmark Holdings Limited [2015] KEELRC 566 (KLR)", Case Analysis (2015). Cause No 2564 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/566/eng@2015-07-10

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