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ELRCPartially AllowedCause No 2008 of 2011· [2015] KEELRC 1425 (KLR)

Harrison Ephantus Mucoya v Beveva Parts & Accessories Limited [2015] KEELRC 1425 (KLR)

Employment and Labour Relations Court of Kenya
2 March 2015
1,414 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer who fired a worker over a theft without investigating or tracing him was ordered to pay over Kshs. 444,000 in compensation.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from January 2002 and earning Kshs. 25,000 monthly at separation, claimed compensation for unfair termination and terminal dues. He testified that after a loss of Kshs. 200,000 from the Respondent's premises, the Director, Alfred Gatiaga Thuku, asked him to stay away pending investigations and he was never allowed back, prompting a report of a trade dispute at the District Labour Office. The Respondent contended he deserted duty on 16th April 2011 and counterclaimed Kshs. 73,226 as salary overpayment. The Court identified four issues: desertion versus termination, limitation, entitlement to reliefs, and the counterclaim. It held that an employer invoking summary dismissal for absence must show efforts to trace the employee; finding the Respondent's account implausible, the Court adopted the Claimant's version of verbal termination, which was unfair under Section 45 of the Employment Act. On limitation, service and leave pay were continuing wrongs with time running from termination, and conciliation further tolled time; referral to conciliation did not bar the suit. The Claimant was awarded 8 months' salary as compensation, one month's notice pay, service pay for six years (NSSF having been remitted for only two years), and leave pay allowed under Section 10(7) for want of leave records. Salary arrears and the counterclaim were dismissed as unproved. Costs were awarded to the Claimant with interest on the Kshs. 444,375 award.

Key legal issues

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01

Whether the Claimant was terminated or deserted duty

Holding

The Court preferred the Claimant's version that he was verbally terminated after the alleged loss of money, amounting to unfair termination under Section 45 of the Employment Act

Reasoning

The Respondent's witness claimed the Claimant deserted duty after the theft of Kshs. 200,000. The Court found it implausible that an employer would let suspects in a theft simply walk away. Absent further evidence on the circumstances of termination, the Claimant's account was adopted, and the termination was held unfair under Section 45.

p. 2
02

Limitation under Section 90 of the Employment Act

Holding

Service and leave pay are continuing wrongs; time ran from termination on 16th April 2011, and the conciliation referral further tolled time, so the claim filed on 28th November 2011 was in time

Reasoning

The Respondent argued claims predating 2008 were statute barred. The Court held service and leave pay are continuing wrongs, with time running from termination. Relying on existing jurisprudence, time also did not run while the dispute was at conciliation at the District Labour Office. The claim was therefore filed well within time.

p. 3
03

Whether conciliation at the Labour Office barred the claim

Holding

Referral to conciliation does not bar the claim; the Court has jurisdiction since the Claimant was dissatisfied with the Labour Office decision

Reasoning

The Respondent submitted the claim was improperly before the Court because it had been dealt with at the Labour Office. Following Leonida Makokha & 3 Others v Munene Estate Limited, the Court held referral to conciliation is no bar, and the Claimant's dissatisfaction with the Labour Office decision preserved his right of access to the Court.

p. 3
04

Reliefs and counterclaim

Holding

Claimant awarded 8 months' salary compensation, notice pay, service pay for 6 years and leave pay; salary arrears and the Respondent's counterclaim dismissed for want of proof

Reasoning

Compensation was assessed at 8 months' salary considering length of service and the Respondent's conduct, including failure to pay full terminal dues. Service pay was due because NSSF was remitted for only two years. Leave pay was allowed under Section 10(7) as the Respondent kept no leave records. Both salary arrears and the counterclaim failed for lack of proof.

p. 3

Legal principles established

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  • An employer relying on summary dismissal for absence from work must demonstrate efforts made to trace the employee's whereabouts before taking action
  • Employers bear the evidential burden of producing leave records; failure permits the court to allow an unproved leave claim under Section 10(7)
  • Service and leave pay claims are continuing wrongs, so limitation runs from termination of employment
  • Referral of a trade dispute to conciliation does not bar a party from seeking justice before the Court

Court orders

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  1. 1.Award to the Claimant of 8 months' salary in compensation for unfair termination (Kshs. 200,000)
  2. 2.1 month's salary in lieu of notice (Kshs. 25,000)
  3. 3.Service pay for 6 years (Kshs. 75,000)
  4. 4.Leave pay for 8 years (Kshs. 140,000)
  5. 5.Prorata leave for 2011 (Kshs. 4,375), total award Kshs. 444,375
  6. 6.Respondent to meet the costs of the case
  7. 7.Award 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 44(4)(a)
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 90
  • Employment Act, 2007Section 10(7)
  • Employment Act, 2007Sections 10 and 74

Cases cited (3)

  • Kenya Scientific Research International Technical and Allied Workers Union Vs Rainald Schumera
    [2012] EKLR
  • Kenya Plantation and Agricultural Workers Union Vs Mununga Leaf Base
    [2013] EKLR
  • Leonida Makokha & 3 Others Vs Munene Estate Limited
    [2014] eKLR
Jurisdiction invoked
Trade dispute referred to the Employment and Labour Relations Court under the Labour Relations Act jurisdiction of the Court in employment and labour relations matters

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Harrison Ephantus Mucoya v Beveva Parts & Accessories Limited [2015] KEELRC 1425 (KLR)", Case Analysis (2015). Cause No 2008 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1425/eng@2015-03-02

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