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ELRCPartially AllowedCause No 833 of 2012· [2015] KEELRC 1638 (KLR)

Anthony Mbinda Mutinda v Delina General Enterprises Ltd & 2 others [2015] KEELRC 1638 (KLR)

Industrial Court (Employment and Labour Relations Court)
25 September 2015
1,699 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court awarded a mechanic over Kshs.515,000 after his employer denied employing him, showing dishonest employers pay heavily.

What this practically means

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Executive summary

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The Claimant, a mechanic lured from CMC Motors, claimed terminal benefits and compensation for unlawful and unfair termination by the Respondents. He testified that he was employed from 1st December 2009 at Kshs.50,000 per month without a written contract, and on 7th June 2011 found his name removed from the payroll, was dismissed without a letter, notice, or reason, and was not paid May 2011 salary. The Respondents denied employing him at all, yet simultaneously admitted giving him piece work, dispatching him to a broken-down truck at Kiboko, withholding May salary pending investigations into negligence, and summarily dismissing him under Section 44(4)(c) of the Employment Act. They called no witness, leaving the Claimant's sworn evidence uncontroverted. The court framed three issues: existence of employment, validity of reason and fairness of procedure, and remedies. It found an employment relationship of 2½ years, holding the contradictory averments were no sustainable defence. The dismissal was found to be without valid reason or fair procedure — no notice to show cause, investigation report, or disciplinary minutes were produced — warranting compensation under Section 49 of the Employment Act, 2007. Six months' salary (Kshs.300,000) was awarded as compensation, together with notice pay (Kshs.50,000), May 2011 salary (Kshs.50,000), seven days' June salary (Kshs.13,462), service gratuity (Kshs.28,845) as no NSSF was paid, and 33 leave days (Kshs.73,074), totaling Kshs.515,381 with interest at court rates. House allowance, rest days, public holidays and overtime claims failed for want of proof. The Respondents were ordered jointly and severally to pay the award and the costs of the suit.

Key legal issues

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01

Existence of employment relationship

Holding

The Claimant was employed by the Respondents as a mechanic and worked continuously for 2½ years.

Reasoning

The Claimant gave particulars of employment in the memorandum of claim and testified under oath. The Respondents made contradictory averments — denying employment while admitting giving the Claimant piece work, stopping his May salary for investigations, and alleging summary dismissal for negligence. They opted not to adduce oral evidence to avoid embarrassment. The Claimant's candid and consistent testimony, supported by documents, remained uncontroverted.

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02

Validity of reason and fairness of procedure for summary dismissal

Holding

The summary dismissal was not for a valid reason nor in accordance with fair procedure, and was unlawful and unfair.

Reasoning

Instead of providing reasons for dismissal, the Respondents denied employing the Claimant. They did not produce a notice to show cause, record of charges, investigation report, or minutes of a disciplinary hearing. The Claimant was simply chased out of the premises without notice or payment of salary. Compensation under Section 49 of the Employment Act, 2007 was therefore warranted.

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03

Remedies available

Holding

Claimant awarded compensation of six months' salary plus notice pay, unpaid salary, service gratuity, and leave pay; house allowance, rest days, public holidays and overtime claims failed for lack of proof.

Reasoning

Terminal benefits remained largely uncontroverted. Service gratuity was granted because the Respondent did not remit NSSF contributions. The Claimant failed to prove house allowance, rest days, public holidays and overtime. Compensation of six months' salary was justified given the Claimant was lured from CMC, dismissed for unproven negligence, and received no terminal benefits or certificate of service.

p. 4

Legal principles established

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  • An employer who denies the employment relationship in its pleadings cannot rely on summary dismissal under Section 44(4)(c) of the Employment Act; contradictory averments constitute no reasonable defence.
  • Uncontroverted sworn testimony by a claimant supported by documentation is sufficient proof of employment and termination where the respondent adduces no evidence.
  • An employer bears the duty of producing leave records; failure to produce leave application and approval forms means accrued leave is sufficiently proved by the employee.

Court orders

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  1. 1.Kshs.300,000.00 compensation for unlawful and unfair dismissal
  2. 2.One month salary in lieu of notice in the sum of Kshs.50,000.00
  3. 3.Salary for May 2011, Kshs.50,000.00
  4. 4.Seven (7) days' salary for June 2011, Kshs.13,462.00
  5. 5.Service gratuity for 2½ years Kshs.28,845.00
  6. 6.Thirty three (33) days in lieu of leave Kshs.73,074
  7. 7.Total Award Kshs.515,381.00 payable with interest at Court rates from date of Judgment till payment in full
  8. 8.The Respondents to pay the costs of the suit

Authorities

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Legislation

  • Employment ActSection 44(4)(c)
  • Employment Act, 2007Section 49
Jurisdiction invoked
Employment Act, 2007 and the Industrial Court's employment jurisdiction

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, "Anthony Mbinda Mutinda v Delina General Enterprises Ltd & 2 others [2015] KEELRC 1638 (KLR)", Case Analysis (2015). Cause No 833 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1638/eng@2015-09-25

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