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ELRCPartially AllowedCause transferred from the Chief Magistrate's Court, Nakuru (consent of 21 March 2014)· [2016] KEELRC 769 (KLR)

David Muriuki Ngare v Spin Knit Limited [2016] KEELRC 769 (KLR)

Employment and Labour Relations Court
2 September 2016
1,324 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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The Claimant, engaged by the Respondent under a written contract dated 11 May 1998 and serving as a loom operator from 1996 to 1999, sued for termination of employment without cause, accrued leave allowances and damages for breach of contract. The suit was filed in the subordinate court in Nakuru on 14 May 2003, suffered prolonged inactivity and multiple changes of advocates, and was transferred to the Employment and Labour Relations Court by consent on 21 March 2014. The Respondent's case was closed on the court's own ruling after repeated non-attendance, and no submissions were filed despite directions, so judgment was delivered on the record. The court identified the issue as whether the Respondent was in breach of contract and, if so, the appropriate remedies. Applying the pre-1999 statutory framework permitting termination without cause but on contractual notice, the court found that although the individual written contract was silent on notice after probation, a collective bargaining agreement with the Tailors and Textile Workers Union covering 1997 to 1999 provided for notice at clause 15. The Claimant's unchallenged testimony that no notice of termination was given established breach. The court awarded one month's pay in lieu of notice (Kshs 2,844/-) as damages, three months' wages in lieu of untaken leave (Kshs 8,532/-) under clause 4, and unpaid wages for the medically-absent months of May to July 1999 (Kshs 8,532/-) under clause 8, totalling Kshs 19,908/-. Because of the delay occasioned by the Claimant and the failure to file submissions, each party was ordered to bear its own costs.

Key legal issues

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01

Whether the termination of the Claimant's employment was in breach of contract

Holding

The termination was in breach of contract because no notice of termination was given despite the collective bargaining agreement requiring one month's notice for an employee of three years' service

Reasoning

The written contract dated 11 May 1998 did not provide for notice of termination after probation. However, a collective bargaining agreement with the Tailors and Textile Workers Union covering 1997 to 1999 provided for notice of termination at clause 15. The Claimant served for three years and under clause 15(a)(i) should have received one month's notice. His unchallenged testimony that no notice letter was given was therefore accepted.

p. 3
02

Pay in lieu of notice as damages

Holding

The Claimant, a loom operator in Group 2 with a basic monthly wage of Kshs 2,844/-, was entitled to one month's pay in lieu of notice

Reasoning

Wages were payable monthly under the contract, and clause 15 of the collective bargaining agreement entitled an employee of the Claimant's service length to one month's notice. As no notice was given, the equivalent of one month's pay was awarded as damages for breach of contract.

p. 3
03

Accrued leave allowance

Holding

The Claimant was entitled to the equivalent of three months' wages in lieu of untaken leave, computed at Kshs 8,532/-

Reasoning

The Claimant testified that he did not go on leave during his three years of employment and this testimony was unchallenged. Clause 4 of the collective bargaining agreement governed leave entitlements, and the court computed the untaken leave at Kshs 8,532/-.

p. 3
04

Unpaid wages for May, June and July 1999

Holding

The Claimant was entitled to full wages for the first 45 days and half monthly wages for the next 45 days of medical absence, computed at Kshs 8,532/-

Reasoning

The Claimant was absent on medical grounds for May, June and July 1999 and produced a medical certificate. Clause 8 of the collective bargaining agreement provided for full wages for the first 45 days and half monthly wages for the next 45 days of such absence, and the court computed the entitlement at Kshs 8,532/-.

p. 3

Legal principles established

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  • Under the statutory legal framework applicable in 1999, an employer could terminate employment without cause but on notice as provided for in the contract, failure to which damages equivalent to the contractual notice period would be payable
  • A collective bargaining agreement incorporated into the employment relationship can supply notice terms absent from the individual written contract

Court orders

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  1. 1.The Respondent to pay the Claimant 1 month pay in lieu of notice of Kshs 2,844/-
  2. 2.The Respondent to pay the Claimant untaken leave of Kshs 8,532/-
  3. 3.The Respondent to pay the Claimant unpaid wages of Kshs 8,532/-
  4. 4.Total award of Kshs 19,908/- to the Claimant
  5. 5.Each party to bear its own costs
Jurisdiction invoked
Transfer of the subordinate court suit to this Court by consent of the parties recorded on 21 March 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, "David Muriuki Ngare v Spin Knit Limited [2016] KEELRC 769 (KLR)", Case Analysis (2016). Cause transferred from the Chief Magistrate's Court, Nakuru (consent of 21 March 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/769/eng@2016-09-02

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