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ELRCPartially AllowedCause No. 565 of 2014· [2015] KEELRC 845 (KLR)

Joyce Mwende Kang’aa v Shaliy Awan & another [2015] KEELRC 845 (KLR)

Employment and Labour Relations Court of Kenya
25 June 2015
2,747 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan employer who fired a house help during her annual leave was ordered to pay underpayments, notice, compensation and service pay.

What this practically means

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Executive summary

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The Claimant, employed as a House help/Cleaner at the Respondents' Kileleshwa home from 27th December 2011 at Kshs. 7,000 monthly (later Kshs. 8,000), claimed underpayment, unlawful and unfair termination, and contravention of the Labour Institutions Act and the Employment Act. She alleged she was terminated in March 2014 due to pregnancy. The Respondents admitted employing her but said she deserted duty from December 2013; they called no evidence at the hearing. The Court held that published wage guidelines under the Regulation of Wages (General) (Amendment) Orders of 2012 and 2013 applied, and the underpayments of Kshs. 34,985.70 were due as of right. The failure to issue a written contract under sections 9 and 10 of the Employment Act meant the employee's word sufficed, and the duty to issue the contract lay on the employer. The pregnancy discrimination claim failed for lack of evidentiary support: the employee must notify the employer of her pregnancy and prove differential treatment flowing from that knowledge. However, termination while the Claimant was lawfully on annual leave - evidenced by continued communication and payment of February 2014 salary arrears - was an unjustified unfair labour practice under section 45 of the Employment Act. The Court awarded compensation of three months' pay (Kshs. 29,342.85), notice pay (Kshs. 9,780.95), underpayments (Kshs. 34,985.70), and service pay for two years (Kshs. 9,780.95). Maternity leave pay and commuter allowance were declined. Judgment was entered for the Claimant with costs on 25th June 2015.

Key legal issues

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01

Underpayment against the statutory minimum wage

Holding

The Claimant was underpaid; the statutory minimum wage for a House help/Cleaner in Nairobi applied and the shortfall is due as of right

Reasoning

Section 46 of the Labour Institutions Act provides for publication of wages in the Kenya Gazette; once published they apply to contracts of employment. The Claimant's salary of Kshs. 7,000 and later Kshs. 8,000 fell below the minima under Legal Notice No. 71 of 2012 (Kshs. 8,579.80) and Legal Notice No. 197 of 2013 (Kshs. 9,780.95). Underpayments were computed monthly, totalling Kshs. 34,985.70.

p. 2
02

Absence of a written contract of employment

Holding

The employer's failure to issue a written contract under sections 9 and 10 of the Employment Act exposed it, and the employee's word must suffice in a conflict

Reasoning

Sections 9 and 10 of the Employment Act require a written contract within two months of commencement of employment. The Claimant was never issued one. The duty lies on the employer, not the employee, to issue the contract; absence of the contract means the employee's account of unfair treatment prevails in a dispute.

p. 3
03

Alleged discrimination on grounds of pregnancy

Holding

Discrimination on grounds of pregnancy would violate sections 5 and 46 of the Employment Act and Articles 27 and 41 of the Constitution, but the claim failed for want of evidence

Reasoning

A party alleging discrimination must outline the circumstances in which they were discriminated against. There was no evidence that the Claimant applied for maternity leave or notified the employer of her pregnancy through medical notification and that this was denied. The employer has no duty to know of a pregnancy; the employee must bring it to the employer's attention, with evidence of differential treatment flowing from that knowledge.

p. 4
04

Unfair termination of an employee on lawful leave

Holding

Termination while the Claimant was lawfully on annual leave, without reason or procedure, was unfair under section 45 of the Employment Act

Reasoning

It was uncontested that the Claimant was called on 5th March 2014 while on annual leave and told not to report back, and her February 2014 salary was paid via M-Pesa. The continued communication and payment of salary arrears showed the Respondents knew why she was away. Instead of recalling or dismissing her for desertion, they terminated her while she was lawfully away, an unjustified unfair labour practice.

p. 4
05

Maternity leave claim after termination

Holding

A maternity leave claim cannot arise after termination

Reasoning

The Claimant delivered in May 2014, after her termination in March 2014. Maternity leave entitlements under section 29 of the Employment Act arise where delivery falls within the duration of employment or before termination is effected. The claim was therefore declined as not due.

p. 4
06

Service pay entitlement

Holding

Service pay was due for the two complete years served, at 15 days' pay per year, because no payslip or statement of statutory deductions was issued

Reasoning

Under section 35 of the Employment Act, where an employer does not issue a payslip or statement showing what dues were paid, the Court cannot assess whether statutory deductions were remitted, and service pay becomes due. The Claimant served two complete years and was awarded 15 days' pay per year based on her last salary.

p. 4

Legal principles established

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  • Where no written contract of employment is issued, the word of the employee alleging unfair treatment must suffice
  • It is the employer's duty to issue a written contract of employment, not the employee's duty to demand it
  • An employee alleging discrimination must outline the circumstances of the discrimination, and it is not the employer's duty to know of a pregnancy
  • Termination of an employee who is lawfully away from work (on annual leave) is an unfair labour practice under section 45 of the Employment Act
  • Employers must pay at least the statutory minimum wage; published wage guidelines are mandatory and can only be improved upon

Court orders

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  1. 1.A declaration that the Claimant was unfairly terminated
  2. 2.Compensation of Kshs. 29,342.85
  3. 3.Notice pay of Kshs. 9,780.95
  4. 4.Underpayments of Kshs. 34,985.70
  5. 5.Service pay of Kshs. 9,780.95
  6. 6.Costs of the case

Authorities

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Legislation

  • Labour Institutions Actsections 43 and 46
  • Employment Actsections 5, 9, 10, 25, 29, 35, 36, 45, 46
  • Constitution of KenyaArticles 27 and 41
  • Regulation of Wages (General) (Amendment) Order 2012Legal Notice No. 71 of 1st May 2012
  • Regulation of Wages (General) (Amendment) Order 2013Legal Notice No. 197 of May 2013

Cases cited (2)

  • Collins Osoro Lukhale versus AAA Growers Limited
    Cause No. 100 of 2012
  • Jane Wangari Njoroge versus E. N. Peertet t/a Joliday Nursery School
    Cause No. 1600 of 2011
Jurisdiction invoked
Employment and labour relations jurisdiction over a claim of underpayment, unfair termination and contravention of the Employment Act and the Labour Institutions Act

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, "Joyce Mwende Kang’aa v Shaliy Awan & another [2015] KEELRC 845 (KLR)", Case Analysis (2015). Cause No. 565 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/845/eng@2015-06-25

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