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ELRCPartially AllowedCause No 2327 of 2012· [2015] KEELRC 1107 (KLR)

Fred Mudembei Shilagava v Emco Billets and Steel Limited [2015] KEELRC 1107 (KLR)

Employment and Labour Relations Court of Kenya
15 May 2015
1,557 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that even when an employee gives an employer valid grounds to fire them, skipping fair procedure still makes the dismissal unlawful.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from February/March 2010 at a daily wage later fixed at Kshs.394, claimed compensation for unlawful termination of employment and terminal dues after his separation in December 2011, alleging he was locked out on return from one week's sick leave. The Respondent denied terminating him, asserting he deserted duty from 24th February 2012, and contended he was a casual employee whose terminal dues claims were unsustainable. The Court framed four issues: the Claimant's employment status, whether he absconded or was terminated, and if terminated, the lawfulness and fairness of the termination and the remedies due. The Court found the Claimant was a full time employee on a term contract, since payment of full NSSF and NHIF dues was inconsistent with casual employment and the Respondent's casual payment records were unauthenticated. On substance, because the Claimant never notified the Respondent of his illness as required by Section 30(2) of the Employment Act, the Respondent had a valid reason for termination under Section 43; the desertion allegation was unsupported by any notice to show cause. However, no attempt was made to comply with the procedural fairness requirements of Section 41, so the termination was procedurally unfair. The Court awarded three months' salary in compensation, one month's salary in lieu of notice and 39 days' leave pay, totalling Kshs.62,646.00, with interest at court rates. The service pay claim was abandoned, but the certificate of service claim and costs succeeded.

Key legal issues

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01

Whether the Claimant was a casual or full time employee

Holding

The Claimant was a full time employee on term contract, earning a monthly salary of Kshs.11,820.

Reasoning

Payment of full NSSF and NHIF dues by the Respondent was inconsistent with casual employment, and the Respondent's casual payment records were neither signed nor stamped, casting doubt on their veracity. Applying the statutory definition of casual employment and Section 37 conversion, the Court found the Claimant was on a term contract and adopted the pleaded uncontroverted salary of Kshs.394 per day.

p. 2
02

Whether the termination was substantively justified

Holding

The Respondent had a valid reason for terminating the employment because the Claimant failed to notify it of his illness.

Reasoning

Section 44(4) recognises desertion as a ground for summary dismissal, but the Respondent gave no notice to show cause to establish desertion. However, Section 30(2) requires an employee to notify the employer of illness; the Claimant adduced no evidence of notification, so the employer had a valid reason under Section 43.

p. 3
03

Whether the termination was procedurally fair

Holding

The termination was unfair for want of due procedure under Section 41.

Reasoning

The reason for termination fell under gross misconduct, engaging the procedural fairness requirements of Section 41. The Court found no attempt by the Respondent to comply with Section 41's requirements, rendering the termination procedurally unfair.

p. 3

Legal principles established

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  • An employer asserting that an employee deserted duty must evidence the assertion by a notice to show cause why employment should not be terminated on that ground.
  • Failure by an employee to notify their employer of their illness avails the employer a good defence in a claim for unlawful termination of employment.
  • The employment of a casual employee who works continuously for at least one month is deemed converted to a term contract by operation of law.

Court orders

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  1. 1.Respondent to pay the Claimant 3 months' salary in compensation for unfair termination (Kshs.35,460.00)
  2. 2.Respondent to pay the Claimant 1 month's salary in lieu of notice (Kshs.11,820.00)
  3. 3.Respondent to pay the Claimant 39 days' leave pay (Kshs.15,366.00), total Kshs.62,646.00
  4. 4.Respondent to issue the Claimant with a certificate of service
  5. 5.Respondent to meet the costs of the case
  6. 6.Award amount to attract interest at court rates from the date of the award until payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 2
  • Employment Act, 2007Section 37
  • Employment Act, 2007Section 44(4)
  • Employment Act, 2007Section 30(1)
  • Employment Act, 2007Section 30(2)
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 41

Cases cited (3)

  • Wilfred Bukachi Opwaka Vs Ready Consultancy Company Limited
    Industrial Court Cause No 471 of 2012
  • Geoffrey Muringi Mwangi Vs Rwaken Investments Limited
    Cause No. 1658 of 2012
  • Banking, Insurance & Finance Union (Kenya) Vs Barclays Bank of Kenya Limited
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act over employment and labour relations disputes

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Fred Mudembei Shilagava v Emco Billets and Steel Limited [2015] KEELRC 1107 (KLR)", Case Analysis (2015). Cause No 2327 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1107/eng@2015-05-15

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