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ELRCPartially AllowedIndustrial Cause No. 315 of 2013· [2015] KEELRC 1631 (KLR)

David Otieno v Kisumu Water & Sewerage Co. Ltd [2015] KEELRC 1631 (KLR)

Industrial Court of Kenya at Kisumu
24 July 2015
891 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 cannot put a long-serving worker on probation or fire them without following the Employment Act's fair procedure.

What this practically means

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Executive summary

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The Claimant, David Otieno, sued Kisumu Water and Sewerage Company Limited alleging wrongful and unlawful termination of his employment as a meter reader. He sought statutory deduction arrears, twelve months' salary as allowance/retirement benefits, reinstatement, general damages, costs and interest. The Respondent admitted employing him but maintained he was on probation and that his termination complied with Sections 42(1), (2) and (4) of the Employment Act for unsatisfactory completion of probation; it also denied any entitlement to gratuity, citing NSSF contributions and less than a year of service, and asserted payment of seven days' notice. In its judgment the court framed three issues: whether the Claimant was in employment before the date of the written contract, whether the termination was unfair, and what remedies were due. Relying on the Claimant's uncontroverted testimony and a certificate of excellence dated 21st December 2012 signed by the Respondent's Managing Director, the court found he was in employment before the contract was issued, making the imposition of probation unlawful. The termination therefore required the Section 41 procedure, which was not followed. The Respondent also failed to prove when and how the termination letter was served, leaving the Claimant's account of service on 1st October 2013 uncontested. The court declared the termination unfair and awarded one month's salary in lieu of notice (Kshs.31,151), salary for August and September 2013 (Kshs.62,302), and three months' salary as compensation (Kshs.93,453), with costs to the Claimant and interest at court rates until payment in full. Reinstatement and general damages were not granted. Judgment was delivered on 24th July 2015 by Lady Justice Maureen Onyango.

Key legal issues

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01

Whether the Claimant was in employment before the date of the written contract

Holding

Yes; the Claimant was in employment before the contract date, as evidenced by his testimony corroborated by the certificate of excellence issued 21st December 2012, which was not controverted.

Reasoning

The Claimant testified he was employed as a casual from July 2009 and received a certificate of excellence in December 2012, months before the contract of 26th February 2013. The Respondent's witness doubted the certificate's authenticity but could not disprove it, and confirmed the Respondent does issue such certificates. The evidence stood uncontroverted, so probation from the contract date was unlawful.

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02

Whether the termination was unfair

Holding

Yes; the termination was unfair because the Claimant should not have been on probation and was not accorded the Section 41 procedure, and because by 1st October 2013 he was no longer on probation.

Reasoning

Since the Claimant was already in employment, placing him on probation was unlawful and the summary process under Section 42 was unavailable. He was entitled to the Section 41 process, which was not followed. Further, the Respondent could not prove when the termination letter was served, so the Claimant's evidence of service on 1st October 2013 stood uncontested, meaning he was not on probation then.

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03

Whether the Claimant is entitled to the remedies sought

Holding

Partially; the court awarded notice pay, unpaid salary for August and September 2013, and 3 months' salary as compensation, with costs and interest, but did not grant reinstatement or general damages.

Reasoning

Having found the termination unfair, the court exercised its discretion to award the specific monetary remedies: one month's salary in lieu of notice (Kshs.31,151), salary for August and September 2013 (Kshs.62,302), and 3 months' salary as compensation (Kshs.93,453), plus costs and interest. Reinstatement and general damages were not granted.

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Legal principles established

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  • An employee already in employment cannot lawfully be subjected to probation from the date of a later contract of employment.
  • Termination of employment must comply with the fair procedure under Section 41 of the Employment Act.
  • A party bears the consequences of failing to prove the date and manner of service of a termination letter.

Court orders

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  1. 1.Declaration that the termination of the Claimant's employment was unfair
  2. 2.One month's salary in lieu of notice awarded at Kshs.31,151
  3. 3.Salary for August and September 2013 awarded at Kshs.62,302
  4. 4.Compensation of 3 months' salary for unfair termination awarded at Kshs.93,453
  5. 5.Respondent to pay the Claimant's costs of the suit
  6. 6.Decretal sum to attract interest at court rates until payment in full

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 42(1)(2) and (4)
Jurisdiction invoked
Industrial Court of Kenya jurisdiction over employment and labour relations disputes (Employment Act; Industrial Court established under the Industrial Court 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, "David Otieno v Kisumu Water & Sewerage Co. Ltd [2015] KEELRC 1631 (KLR)", Case Analysis (2015). Industrial Cause No. 315 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1631/eng@2015-07-24

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