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ELRCPartially AllowedCause No. 1391 of 2014· [2016] KEELRC 619 (KLR)

Paul Kilonzo v Silpack Industries Ltd [2016] KEELRC 619 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
9 September 2016
558 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is an undefended employment claim originally filed in the Principal Magistrate's Court at Nairobi as Civil Suit No. 5814 of 2010 and transferred to the Employment and Labour Relations Court by Lady Justice R. E. Ougo on 16th May 2014. The claimant, Paul Kilonzo, sought terminal benefits and twelve months' salary as compensation for alleged unfair and wrongful dismissal. The respondent, Silpack Industries Ltd, filed no response to the claim in either court and did not attend the hearing, having been served with the hearing notice. The claimant testified under oath in support of his claim. The court found, on a balance of probabilities, that the claimant was employed by the respondent from January 2001 as a carton balling machine operator earning Kshs 6,656 per month, and that his employment was terminated on 23rd May 2008 without a valid reason and without fair procedure. The court held that under the repealed Employment Act (cap 226) and Trade Disputes Act (cap 234) the claimant was entitled to compensation. The court awarded Kshs 6,656 in lieu of notice, Kshs 45,384 in unpaid overtime, Kshs 23,296 service gratuity for seven completed years, and Kshs 87,832 house allowance for seven years, totalling Kshs 159,168 in terminal benefits. It further awarded compensation of seven months' salary, Kshs 46,592, for the unlawful termination - less than the twelve months sought. The total award of Kshs 205,760 was to attract interest at court rates from the date of filing suit until payment in full, with costs following the outcome.

Key legal issues

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01

Unfair and wrongful termination of employment

Holding

The claimant proved his employment was terminated on 23rd May 2008 without a valid reason and without fair procedure, entitling him to compensation

Reasoning

The claimant testified under oath in an undefended suit and proved on a balance of probabilities that he was employed from January 2001 as a carton balling machine operator earning Kshs 6,656 monthly. His employment was terminated without valid reason or fair procedure, and without notice or payment in lieu, entitling him to compensation under the repealed Employment Act and Trade Disputes Act.

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02

Terminal benefits including notice, overtime, service gratuity, house allowance and statutory deductions

Holding

The respondent failed to pay notice, overtime, service gratuity at 15 days' salary per completed year, house allowance, and failed to remit NHIF and NSSF dues

Reasoning

The undefended claim established that the claimant received no notice of termination or payment in lieu, worked unpaid overtime, was not housed or paid house allowance, and that the respondent did not remit NHIF and NSSF dues deducted from him. Service gratuity was awarded for seven completed years at 15 days' salary per year.

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Legal principles established

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  • An employee terminated without a valid reason and without fair procedure is entitled to compensation under the repealed Employment Act and Trade Disputes Act.

Court orders

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  1. 1.Kshs 6,656 in lieu of notice
  2. 2.Kshs 45,384 overtime worked
  3. 3.Kshs 23,296 service gratuity for 7 years
  4. 4.Kshs 87,832 house allowance for 7 years
  5. 5.Total terminal benefits Kshs 159,168.00
  6. 6.Compensation equivalent to seven (7) months' salary for the unlawful termination of employment in the sum of Kshs 46,592
  7. 7.Total award of Kshs 205,760 payable with interest at court rates from date of filing suit till payment in full
  8. 8.Costs follow the outcome

Authorities

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Legislation

  • Employment Actcap 226 (now repealed)
  • Trade Disputes Actcap 234 (now repealed)
Jurisdiction invoked
Transfer from Principal Magistrate's Court at Nairobi (Civil Suit No. 5814 of 2010) to the Employment and Labour Relations Court by Lady Justice R. E. Ougo on 16th May 2014

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, "Paul Kilonzo v Silpack Industries Ltd [2016] KEELRC 619 (KLR)", Case Analysis (2016). Cause No. 1391 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/619/eng@2016-09-09

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