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ELRCDismissedCause No. 462 of 2010· [2015] KEELRC 1050 (KLR)

Jowasi Ambundo Kasina & 5 others v Kenafric Industries Limited [2015] KEELRC 1050 (KLR)

Employment and Labour Relations Court of Kenya
19 May 2015
2,795 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Six workers lost their Kshs.1.3 million claim because piece work contracts paid daily don't attract leave, overtime, service pay, or house allowance benefits.

What this practically means

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Executive summary

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Six claimants sued Kenafric Industries Limited seeking terminal dues totalling Kshs.1,288,997.20, comprising service pay, payment in lieu of untaken leave, house allowance, notice pay, compensation for wrongful loss of employment and overtime. The suit was originally filed as CMCC 403 of 2005 in the Magistrate's Court, Milimani, withdrawn on 12th February 2010 and refiled in this court, with extension of time granted by consent on 21st November 2011. The respondent denied liability, asserting the claimants were engaged on piece work contracts paid daily at the end of each week, that all dues were paid, and that notice payments had been deposited with the Nairobi Labour Office following conciliation by the Minister, who found the terminations were for absenteeism and insubordination. The court first held that the absence of individual verifying affidavits for the 2nd to 6th claimants did not render the claim defective, as the 1st claimant's affidavit covered all claimants. On the applicable law, the court found that all terminations occurred between 2000 and 2001, so the repealed Employment Act Cap 226 applied, not the Employment Act, 2007, which commenced on 2nd June 2008; the transfer of the suit did not change the applicable law. The respondent's unchallenged evidence of piece work contracts meant the daily payments were all inclusive and the claims for leave, overtime, house allowance and service pay had no legal basis. The compensation claim failed for lack of evidence of specific loss, and notice pay had already been deposited with the Minister for Labour. The suit was dismissed with no orders as to costs, the claimants having a valid pauper order.

Key legal issues

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01

Whether the claim by the 2nd to 6th claimants was fatally defective for lack of individual verifying affidavits

Holding

The claim was not fatally defective because the memorandum of claim was supported by the verifying affidavit of the 1st claimant made on his own behalf and on behalf of the other claimants

Reasoning

The court noted that the memorandum of claim filed in April 2010 was supported by the Verifying Affidavit of the 1st claimant, Jowasi Ambundo Kasina, made at paragraph (1) on his own behalf and on behalf of the other claimants. The respondent's submission that the claim by the 2nd to 6th claimants lacked verifying affidavits was held to lack basis, and the court proceeded to assess the merits of the case.

p. 4
02

The applicable law - the repealed Employment Act Cap 226 or the Employment Act, 2007

Holding

The applicable law is the repealed Employment Act Cap 226 because all terminations occurred between 2000 and 2001, before the Employment Act, 2007 commenced on 2nd June 2008; the transfer of the suit and extension of time did not change the applicable law

Reasoning

The last termination was on 2nd November 2001, when the law in force was the Employment Act Cap 226, the Employment Act 2007 having commenced only on 2nd June 2008. Although the suit was transferred from the lower court and extension of time granted by consent in 2011, transfer does not change the applicable law or the date the cause of action arose. Claims under the Employment Act, 2007, including reliance on section 37 converting casual employment, were therefore a misconception.

p. 5
03

Whether the claimants, engaged on piece work contracts, were entitled to leave, overtime, house allowance, underpayments and service pay

Holding

No - piece work contracts end each day and the daily payments are all inclusive; such benefits attach only to full-time employment and service pay is a benefit for contracts other than piece work

Reasoning

The respondent's evidence of piece work contracts (Appendix 1 to the defence) was not challenged or controverted by the claimants. Under sections 2 and 5(1) of the Employment Act Cap 226, piece work is paid by the amount of work performed irrespective of time occupied, and such contracts end each day with all-inclusive payments. Claims for overtime, house allowance, leave, underpayment and service pay therefore had no legal basis under the applicable repealed law.

p. 5
04

Whether the claimants were entitled to compensation for loss of employment and notice pay

Holding

The claim for compensation for loss of employment failed for lack of evidence or submissions establishing specific loss; notice pay dues were admitted and had been deposited with the Minister for Labour for collection by the claimants

Reasoning

Compensation for loss of employment contemplates a full-time employee removed from employment, and on a piece work contract applies only for time not covered by the piece work; the claimant must demonstrate the specific payment made or not made for work done. A general claim for 12 months' pay was far-fetched. As to notice pay, the respondent admitted these dues, which were deposited with the Minister for Labour after conciliation, with notification given to the claimants, who were directed to collect the monies.

p. 6

Legal principles established

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  • The transfer of a suit to a different court does not change the applicable law; the law in force at the date the cause of action arose governs the claim
  • Piece work contracts under the repealed Employment Act Cap 226 end each day and payments due at the end of each day are all inclusive, and cannot attract benefits such as overtime, house allowance, leave and service pay applicable to full-time employees
  • A verifying affidavit by one claimant on his own behalf and on behalf of co-claimants suffices, so the absence of individual verifying affidavits does not render the claim by the other claimants fatally defective

Court orders

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  1. 1.The claims herein must fail and the suit is dismissed
  2. 2.No orders as to costs

Authorities

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Legislation

  • Employment Act, Cap 226 (repealed)sections 2, 5(1), 14, 14(5)(i)
  • Employment Act, 2007sections 10(7), 37, 74
  • General Wage Ordersprovision that daily wage was inclusive of house allowance

Cases cited (1)

  • Duncan Otieno Waga versus Attorney General
    Petition No. 94 of 2011
On appeal from
Chief Magistrate's Court, Milimani (CMCC 403 of 2005)
CMCC 403 of 2005
Jurisdiction invoked
Transfer of a suit from the magistrates' court to the Employment and Labour Relations Court following the enactment of the Labour Laws in 2007; extension of time granted by consent on 21st November 2011

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Jowasi Ambundo Kasina & 5 others v Kenafric Industries Limited [2015] KEELRC 1050 (KLR)", Case Analysis (2015). Cause No. 462 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1050/eng@2015-05-19

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