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ELRCPartially AllowedCause Number 435 of 2013· [2016] KEELRC 788 (KLR)

Rashid Msena v Arkson Quarries [2016] KEELRC 788 (KLR)

Industrial Court of Kenya
29 July 2016
3,000 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that a worker employed continuously beyond one month is not casual, and employers must prove contract terms when no written contract exists.

What this practically means

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Executive summary

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The Claimant, Rashid Msenа, sued his former employer, Arkson Quarries, alleging unfair and unlawful termination of his employment as a Fabricator and seeking notice pay, service pay, salary for days worked, annual leave pay, Kshs. 100,000 for a separate machine repair contract, a certificate of service, compensation and costs. The Respondent denied the claims, contending the Claimant was a casual employee engaged in June 2013 at Kshs. 1,000 per day, and that no separate repair contract existed. The Court found, applying Section 10(7) of the Employment Act, that the Respondent failed to prove a June 2013 start date, and held the Claimant was employed in June 2012 for 17 months. It held that an employee working continuously beyond one month cannot be casual under Section 37, and that his work was central to the business, making him a regular employee entitled to full statutory protection. On termination, allegations of rudeness and incitement were relayed only by a supervisor who never testified and were never investigated; no show-cause notice or hearing was given, so termination was unfair in substance and procedure. The separate machine repair claim failed because the task fit the Claimant's job description. Adopting Kshs. 15,000 as monthly salary based on the wage schedules, the Court awarded Kshs. 73,500 total: 3 months' compensation, notice pay, service pay and salary for days worked, ordered release of the certificate of service, directed each party to bear its own costs, and gave the Respondent 30 days to satisfy the award.

Key legal issues

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01

Date and nature of employment

Holding

Claimant was employed in June 2012 and worked 17 months as a regular employee, not a casual

Reasoning

The employer bore the burden under Section 10(7) of the Employment Act to disprove the claimant's asserted start date, having issued no written contract. The employer's claim that operations began in June 2013 was unsupported by documents or independent witnesses. A worker engaged continuously beyond one month cannot be casual, and the work was central to the business.

p. 4
02

Fairness of termination

Holding

Termination was unfair in substance and procedure

Reasoning

Allegations of rudeness and incitement came only from a supervisor who never testified and were never investigated or established. The payment voucher showed termination was at the employer's instance. No notice to show cause or hearing was given, contrary to Sections 41, 43 and 45 of the Employment Act.

p. 5
03

Separate machine repair contract

Holding

Claim of Kshs. 100,000 for machine repair failed

Reasoning

The claimant's duties as Fabricator included machine repair and he received wages for it. His alleged helpers were themselves the respondent's regular workers. The task fit within his general job description, so he did not prove a distinct extraneous contract.

p. 4
04

Assessment of compensation

Holding

Monthly salary adopted at Kshs. 15,000 based on wage schedules; 3 months' compensation awarded

Reasoning

Wage schedules showed the claimant worked about 15 days a month, making the claimed Kshs. 30,000 an incorrect base rate. In the exercise of discretion and for fairness, the Court adopted 15 days' salary as the monthly salary and awarded 3 months' compensation, notice pay, service pay and salary for days worked.

p. 5

Legal principles established

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  • Where an employer fails to produce a written contract, the burden of proving or disproving an alleged term of employment rests on the employer
  • An employee who has worked continuously for more than one month cannot be treated as a casual employee under Section 37 of the Employment Act
  • Work central to the employer's business demands regular engagement and does not constitute transient casual labour
  • Unproved allegations of misconduct relayed by a supervisor who is not called as a witness cannot amount to valid reasons for termination
  • Termination without notice to show cause and a hearing is unfair both in substance and procedure

Court orders

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  1. 1.Declaration that termination was unfair
  2. 2.Respondent to pay Claimant 3 months' salary in compensation for unfair termination at Kshs. 45,000
  3. 3.Respondent to pay 1 month salary in notice pay at Kshs. 15,000
  4. 4.Respondent to pay service pay at Kshs. 7,500
  5. 5.Respondent to pay Kshs. 6,000 as salary for days worked in November 2013
  6. 6.Respondent to release Claimant's Certificate of Service forthwith
  7. 7.Each party to meet their own costs of the litigation
  8. 8.Award to be satisfied in full within 30 days of delivery

Authorities

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Legislation

  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)
  • Employment Act 2007Section 10(7)
  • Employment Act 2007Section 37
  • Employment Act 2007Sections 41, 43, 45
  • Employment Act 2007Section 51
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010, Rule 27(1)(a); jurisdiction over employment and labour relations disputes

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, "Rashid Msena v Arkson Quarries [2016] KEELRC 788 (KLR)", Case Analysis (2016). Cause Number 435 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/788/eng@2016-07-29

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