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ELRCPartially AllowedCause No. 1095 of 2012· [2016] KEELRC 34 (KLR)

Samson Ndika Olinga v Jiku Builders Limited [2016] KEELRC 34 (KLR)

Employment and Labour Relations Court of Kenya
25 November 2016
1,069 words in judgment
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The bottom line

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A Kenyan court ruled a carpenter's dismissal without notice or a hearing was unfair, awarded his dues, but denied costs because a labour consultant filed the claim.

What this practically means

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Executive summary

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This was an undefended employment claim filed on 26th June 2012 by Samson Ndika Olinga, a carpenter, against Jiku Builders Limited, alleging unlawful termination of employment and non-payment of terminal dues. The Respondent's advocates came off record in May 2015, the Respondent was served directly with hearing notice, and no defence was filed. The court therefore analysed the claim on its merits. The Claimant testified he was employed on 24th April 2011 at Kshs.500 per day and terminated on 2nd March 2012 by the site manager's statement that there was no work, without notice, reasons or payment of dues, while his workmates remained employed. The court held that his 10 months of continuous employment made him a protected employee under section 37 of the Employment Act, and that termination without notice, reasons or a hearing breached sections 35, 41 and 43 and was unfair under section 45. Applying the Building and Construction Industry Wage Order, the court quantified underpayment at Kshs.480, overtime at Kshs.2,823.75, 22 days' leave pay at Kshs.11,044, house allowance at Kshs.22,770 and tools allowance at Kshs.1,520, and awarded one month's notice pay of Kshs.15,060. The claim for 7 public holidays worked failed for want of proof. Costs were denied because the claim and notices were lodged by an unqualified labour consultant. Judgment was delivered in open court at Nairobi on 25th November 2016.

Key legal issues

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01

Status of the employee and fairness of termination

Holding

The Claimant, having worked continuously for 10 months, was a protected employee under section 37 of the Employment Act; the termination without notice, reasons or a hearing was unfair

Reasoning

The court found the Claimant worked from 24th April 2011 to 2nd March 2012 continuously, attracting section 37 protection. Termination is regulated by sections 35, 43 and 41 of the Employment Act, requiring notice with reasons and a hearing where misconduct is alleged. On the Claimant's uncontroverted testimony, he was told there was no work, given no reasons and no notice, while his workmates remained employed. Failure to meet these procedural and substantive requirements rendered the termination unfair under section 45.

p. 2
02

Quantification of monetary dues under the Wage Order

Holding

Underpayment of Kshs.480, overtime of Kshs.2,823.75, leave of 22 days at Kshs.11,044, house allowance of Kshs.22,770 and tools allowance of Kshs.1,520 were awarded, computed on the Building and Construction Industry Wage Order daily rate of Kshs.502 for a carpenter

Reasoning

Applying the Wage Order in the Building and Construction Industry, the court computed underpayment at Kshs.2 per day over 10 months (Kshs.480), overtime at 1.5 times the daily rate for 30 excess hours (Kshs.2,823.75), 22 days' leave (Kshs.11,044), monthly house allowance of Kshs.2,277 for 10 months (Kshs.22,770) and tools allowance of Kshs.152 per month (Kshs.1,520).

p. 2
03

Burden of proving public holiday pay

Holding

The claim for pay for 7 public holidays failed for lack of proof even in an undefended suit

Reasoning

Although there was no defence, the court held that a claimant must still justify claims on their merits. The Claimant did not identify which public holidays he worked, and since public holidays fall on different days each year, the claim could not be allowed in general terms.

p. 2
04

Costs where proceedings initiated by an unqualified labour consultant

Holding

No costs awarded because the claim and notices were lodged by a labour consultant not qualified to institute the proceedings

Reasoning

The court noted the claim and notices to the Respondent were by K/S A.O Jacob Kenya Labour Consultant, which is not a qualified entity for purposes of the proceedings. Following its prior decisions in Timothy Munyaka v Nairobi Pacific Hotel Ltd and Mercy Kanini Lilian v Ali Ishmael Mwangi, no costs were due despite the later change to the Claimant's current advocates.

p. 2

Legal principles established

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  • Continuous employment for the period served brings an employee within the protection of section 37 of the Employment Act as a full-time employee
  • Failure to comply with the procedural and substantive requirements for termination renders the termination unfair under section 45 of the Employment Act
  • A claimant must specifically justify a claim for public holiday pay; it cannot be put in general terms
  • Costs will not be awarded where the claim was lodged by an entity not qualified to institute proceedings

Court orders

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  1. 1.Judgment entered for the Claimant against the Respondent for notice pay for one (1) month at Kshs.15,060.00
  2. 2.Underpayments awarded at Kshs.480.00
  3. 3.Overtime pay awarded at Kshs.2,823.75
  4. 4.Leave days' pay awarded at Kshs.11,044.00
  5. 5.House allowance due awarded at Kshs.22,770.00
  6. 6.Tools allowance awarded at Kshs.1,520.00

Authorities

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Legislation

  • Employment Actsection 37
  • Employment Actsection 35
  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 45
  • Legal Notice No. 64 of 1st May 2011housing allowance at 15%
  • Wage Order in the Building and Construction Industry, Wages Order, 2012daily wage of a carpenter, hours of work, tools allowance, housing allowance

Cases cited (2)

  • Timothy Munyaka versus M/s Nairobi Pacific Hotel Ltd
    Cause No. 4 of 2013
  • Mercy Kanini Lilian versus Ali Ishmael Mwangi t/a Tupelo Restaurant continental dishes
    Cause No. 71 of 2013
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the claim of unlawful termination of employment and non-payment of terminal dues/benefits (Employment 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, "Samson Ndika Olinga v Jiku Builders Limited [2016] KEELRC 34 (KLR)", Case Analysis (2016). Cause No. 1095 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/34/eng@2016-11-25

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