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ELRCPartially AllowedCause Number 527 of 2014· [2015] KEELRC 634 (KLR)

Kuzungu Kenga Katana v Ready Consultancy Co Limited [2015] KEELRC 634 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
31 July 2015
2,644 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Mombasa court awarded a dismissed welder leave pay and small compensation, ruling accrued leave is payable even if the employee never applied for it.

What this practically means

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Executive summary

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The Claimant, a Welder/Fitter employed by the Respondent, an outsourcing firm, and seconded to Mombasa Maize Millers, was summarily dismissed on 21st January 2013 over two charges: carelessly dropping a spanner into the milling machine on 6th January 2013 and failing to report it, and absenting himself from work from 11th to 14th January 2013 without leave. He claimed 12 months' salary in compensation, notice pay, annual leave pay, refunds of N.S.S.F and N.H.I.F deductions, severance pay, a certificate of service, costs and interest, contending he was doubly punished (warning and dismissal the same day) and denied a fair hearing under Section 41 of the Employment Act 2007. The Respondent conceded the employment but justified the dismissal under Section 44, stating a hearing was held on 18th January 2013 with the Claimant accompanied by his workmate Kioko. The Court adopted the salary of Kshs. 18,330 per month from the Letter of Service. It found the reasons for dismissal valid and the procedure largely fair, rejecting the double-punishment claim because the first warning letter on record related to Kioko, not the Claimant. However, Kioko being a fellow accused person, the Claimant was not accompanied by a colleague of his choice - a minor procedural flaw entitling him to compensation. The Court awarded half-month salary (Kshs. 9,165) as compensation and 63 days' annual leave pay (Kshs. 44,415), holding leave accrues even without application. Claims for notice pay, severance pay and refunds of statutory deductions failed, and each party was ordered to bear its own costs. Judgment dated and delivered at Mombasa on 31st July 2015.

Key legal issues

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01

Validity of the reasons for summary dismissal

Holding

The reasons - careless and improper handling of the spanner incident, and unauthorised absence from work - were valid under Section 43 and 44(4) of the Employment Act

Reasoning

The spanner fell accidentally, but the Claimant's subsequent conduct was in doubt: he allegedly failed to register the incident in the occurrence book and left for home without waiting for the spanner to be traced. His absence from work from 11th to 14th January 2013 was without leave and unsupported by documents. Both grounds were held valid reasons for dismissal.

p. 4
02

Fairness of the procedure under Section 41

Holding

Procedure was largely fair, but the Claimant was not accompanied by a workmate of his choice or a trade union representative; Kioko was a fellow accused person and did not qualify

Reasoning

The Claimant received a show-cause letter, replied, was given specific charges, and was heard by a Disciplinary Panel which recommended sanction. However, being accompanied by a co-accused compromised the integrity of the procedure. This minor flaw entitled the Claimant to compensation for unfair termination.

p. 4
03

Alleged double punishment - warning and dismissal on the same day

Holding

Rejected; the first warning letter on record dated 21st January 2013 related to Kioko, not the Claimant

Reasoning

The Claimant argued he was warned and dismissed the same day over the same offence. The Court found on the record that Kioko, not the Claimant, was recommended for and issued a first warning; the Claimant received his sanction from the Director as recommended by the Panel.

p. 4
04

Annual leave pay

Holding

Granted; leave accrued notwithstanding that the Claimant never applied for leave, and 63 days' leave pay of Kshs. 44,415 awarded

Reasoning

The Respondent argued the Claimant never applied for leave. The Court held that non-application does not forfeit the benefit, as there was no suggestion the days were to be forfeited; the employer bore the obligation to pay the accrued benefit.

p. 5
05

Correct monthly salary

Holding

The Court adopted Kshs. 18,330 from the Letter of Service as the correct rate, rather than the Claimant's claim of Kshs. 21,150

Reasoning

The Respondent conceded employment but stated the salary was Kshs. 18,330 as indicated in the Letter of Service dated 24th January 2013. The Claimant could not demonstrate he earned Kshs. 21,150 per month.

p. 3

Legal principles established

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  • An employer must show both valid reason and fair procedure under Sections 41, 43 and 45 of the Employment Act before terminating employment
  • An employee facing disciplinary proceedings cannot validly be accompanied by a co-accused colleague, and the employer must advise the employee of this
  • Accrued annual leave does not require the employee to have applied for leave; the employer must pay the accrued benefit

Court orders

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  1. 1.Termination declared slightly unfair; Respondent to pay the Claimant half-month gross salary of Kshs. 9,165 in compensation
  2. 2.Respondent to pay the Claimant annual leave pay of Kshs. 44,415
  3. 3.Each party to meet their own costs of the claim

Authorities

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Legislation

  • Employment Act 2007Section 44
  • Employment Act 2007Section 44(4)
  • Employment Act 2007Section 41
  • Employment Act 2007Section 43
  • Employment Act 2007Section 45
  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010, Rule 27(1)(a); dispute over unfair and unlawful termination 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, "Kuzungu Kenga Katana v Ready Consultancy Co Limited [2015] KEELRC 634 (KLR)", Case Analysis (2015). Cause Number 527 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/634/eng@2015-07-31

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