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ELRCPartially AllowedCause No. 2122 of 2015· [2016] KEELRC 810 (KLR)

Dennis Moses Maunda v Pinkertons Kenya Limited [2016] KEELRC 810 (KLR)

Employment and Labour Relations Court
25 July 2016
552 words in judgment
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The bottom line

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A Kenyan court ruled Pinkertons unfairly dismissed a worker with no reasons or hearing, awarding him Kshs 207,126 plus costs.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent on or about 24th August 2012 under an oral contract, was summarily dismissed on 15th September 2014. He filed a Memorandum of Claim dated 2nd December 2015 seeking Kshs 247,695 comprising one month's salary in lieu of notice, one year's leave, unpaid September 2014 salary, service pay, house allowance at 15% of basic salary for 25 months, underpayment, and 12 months' compensation for unfair termination, plus costs and interest. He alleged the dismissal contravened Section 41 of the Employment Act, that no grounds or reasons were given in a language he understood, and that he received no notice, leave or house allowance and was underpaid. The claim was undefended: the Respondent, though served with a demand notice through Kituo Cha Sheria, neither responded nor appeared. In open court the Claimant testified that he was removed from his station, asked by the Operations Manager to go home and await communication, and later told his employment had terminated. Holding that no reasons were given for the dismissal and no due process was followed, the court found the dismissal unfair and unjustified and held the Claimant had proved his case. The court awarded notice pay (Kshs 10,911), one year's leave (Kshs 9,637.70), September 2014 salary (Kshs 5,456), service pay for two years (Kshs 10,911), house allowance at 15% for 24 months (Kshs 39,279.60) and 12 months' compensation (Kshs 130,932), totalling Kshs 207,126, together with costs. Judgment was read in open court on 25th July 2016.

Key legal issues

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01

Fairness of the summary dismissal

Holding

The dismissal was unfair and unjustified as no reasons were given and no due process was followed, contrary to Section 41 of the Employment Act

Reasoning

The court considered the claimant's uncontroverted evidence that he was asked to go home and await communication, then informed his employment stood terminated. The respondent was served with a demand notice through Kituo Cha Sheria and failed to respond or appear. The court found no reasons for dismissal were given and no due process followed, making the dismissal unfair under the Employment Act.

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02

Entitlement to terminal dues in an undefended claim

Holding

The claimant was awarded notice pay, leave, unpaid September 2014 salary, service pay for 2 years, house allowance at 15% for 24 months, and the maximum 12 months' compensation for unfair termination

Reasoning

Applying the Employment Act, the court computed notice pay at one month's salary, one year's leave, unpaid salary, service pay at half month's salary per year worked for two years, and house allowance at 15% of basic pay for 24 months of service. For unfair termination the court awarded the maximum of 12 months' gross salary, reflecting the claimant's loss and the employer's failure to justify the dismissal.

p. 2

Legal principles established

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  • Where no reasons are given for dismissal and no due process is followed, termination is unfair and unjustified even in an undefended claim
  • A claimant must prove his case to the required standard; where the respondent is served and fails to respond or appear, the claimant's uncontroverted evidence may suffice

Court orders

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  1. 1.Payment of 1 month's salary in lieu of notice of Kshs 10,911
  2. 2.Payment for leave for 1 year of Kshs 9,637.70
  3. 3.Payment of salary for September 2014 of Kshs 5,456
  4. 4.Service pay for 2 years of Kshs 10,911 (1/2 x 10,911 x 2)
  5. 5.House allowance at 15% of pay for 24 months of Kshs 39,279.60
  6. 6.12 months' salary as compensation for unfair termination of Kshs 130,932
  7. 7.Total award of Kshs 207,126
  8. 8.Costs of the suit to the Claimant

Authorities

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Legislation

  • Employment ActSection 41
  • Retirement Benefits Actnot specified
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over claims of unlawful and unfair termination of employment (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, "Dennis Moses Maunda v Pinkertons Kenya Limited [2016] KEELRC 810 (KLR)", Case Analysis (2016). Cause No. 2122 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/810/eng@2016-07-25

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