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ELRCPartially Allowed· [2016] KEELRC 886 (KLR)

Joshua Olang v Christian Reformed World Relief Committee Kenya [2016] KEELRC 886 (KLR)

Employment and Labour Relations Court (Industrial Court)
20 July 2016
4,570 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded a dismissed manager unpaid notice pay and a certificate of service but denied all other claims for lack of evidence.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent non-profit organisation from 1999 and promoted to Finance and Administration Manager in 2006, was sent on compulsory leave in November 2006 and dismissed on 18th December 2006. He sued for wrongful and unlawful termination, claiming Kshs. 4,474,932/- in terminal dues including notice pay, severance, leave, mileage, telephone claims and damages, plus a certificate of service. The Respondent denied liability, contending the dismissal was for cause (mismanagement of a vehicle loan, tax remittances and loan collections), that the Employment Act 2007 did not apply retrospectively, that natural justice did not apply to the contract, and that the claim was time-barred, while counter-asserting sums owed by the Claimant. The court held that the law applicable was that at the time of dismissal, namely the repealed Employment Act Cap 226, the 2007 Act not being in force. It found the dismissal was for cause, so no damages were payable, and that the various monetary heads failed for want of proof - the Claimant having produced no evidence of the amounts due. However, the pleaded three months' notice pay of $6,000 was never shown to have been paid and was awarded. The court also held the Respondent committed an offence under Section 18 of the repealed Act by failing to issue a certificate of service and ordered its issuance. Judgment was entered for the Claimant for $6,000 notice pay, with costs of the suit and interest at court rates from the date of judgment until payment in full. All other claims were dismissed.

Key legal issues

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01

Applicable law given the 2006 dismissal predating the Employment Act 2007

Holding

The repealed Employment Act Cap 226 governed the dispute; the Employment Act 2007, having come into force in 2008, did not apply, and the Claimant's reliance on Section 41 of the 2007 Act fails.

Reasoning

The court identified the date of dismissal as December 2006 and held that the statute in force at that time, Cap 226, governed. The Employment Act 2007 only came into force in 2008 and could not apply retrospectively. This aligned with the Respondent's submissions citing authorities against retrospective application of the 2007 Act, and it determined both the procedural and substantive framework for assessing the dismissal and terminal dues.

p. 5
02

Lawfulness of the dismissal and entitlement to notice pay

Holding

Reasoning

The termination was said to be with notice pay, yet no evidence showed the $6,000 notice pay was ever paid. Under the repealed Act the employer was required only to make payment of wages due on dismissal for cause. Because the notice pay remained unpaid, the Claimant was entitled to it, but having been dismissed for cause he could not recover damages for the dismissal itself or the unproven allowances claimed.

p. 7
03

Proof of the various monetary claims (severance, leave, mileage, telephone, bonus, provident fund)

Holding

The claims failed for want of evidence; the Claimant produced no proof of the amounts due.

Reasoning

Although the Claimant asserted entitlement to various allowances and terminal dues, the court found he did not produce any evidence quantifying or establishing them. The Respondent's witness had testified that severance is payable only on redundancy, leave could not be carried over, and the provident fund had been released. The court accepted that without proof the heads of claim could not succeed, illustrating the burden of proof resting on the party asserting a monetary entitlement.

p. 6
04

Entitlement to a certificate of service

Holding

The Respondent was obliged under Section 18 of the repealed Act to issue a certificate of service and its failure was an offence; the certificate was ordered.

Reasoning

Section 18(1) of Cap 226 required every employer to give a certificate of service on termination, and Section 18(3) made wilful failure an offence. The Respondent's own witness confirmed the Claimant had worked 8 years and raised no objection to issuance. The court therefore directed issuance of the certificate in terms of the section, noting the Respondent ought to have been punished for the failure.

p. 6

Legal principles established

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  • The law applicable to an employment dispute is the law in force at the time of dismissal; the Employment Act 2007 did not apply to a 2006 dismissal
  • An employee summarily dismissed for lawful cause is entitled on dismissal to all moneys, allowances and benefits due up to the date of dismissal (Section 5(3), repealed Employment Act)
  • Every employer must issue a certificate of service upon termination (Section 18, repealed Employment Act), and failure to do so is an offence

Court orders

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  1. 1.Judgment entered for the Claimant against the Respondent for $6,000 being 3 months notice
  2. 2.Costs of the suit to the Claimant
  3. 3.Interest on the $6,000 at Court rates from date of judgment till payment in full
  4. 4.Certificate of service in terms of Section 18 of the Employment Act cap 226

Authorities

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Legislation

  • Constitution of KenyaArticle 162(2)
  • Industrial Court ActSection 12
  • Employment Act 2007Section 41
  • Employment Act Cap 226 (repealed)Section 17
  • Employment Act Cap 226 (repealed)Section 5(3)
  • Employment Act Cap 226 (repealed)Section 18
  • Employment Act Cap 226 (repealed)Section 44

Cases cited (8)

  • Collins Osoro Lukale v AAA Growers Limited
    [2014] eKLR
  • USIU v Attorney General & 2 others
    [2012] eKLR
  • Agnes M. Mwangi v Barclays Bank of Kenya Ltd
    [2013] eKLR
  • Zedekiah S. Obando v Rift Sports Club Ltd
    [2015] eKLR
  • Pius Ngao Mwenga v Kenya Tourist Development Corporation
    [2013] eKLR
  • Kenya Ports Authority v Silas Obengele
    [2009] eKLR
  • Marshalls (East Africa) Ltd v Jeremiah Kiprop Lagat'at
    [2009] eKLR
  • Walter Musi Anyanje v Hilton International Kenya Ltd & Another
    [2008] eKLR
Jurisdiction invoked
Article 162(2) of the Constitution of Kenya and Section 12 of the Industrial Court Act 2011 (as urged by the Claimant)

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, "Joshua Olang v Christian Reformed World Relief Committee Kenya [2016] KEELRC 886 (KLR)", Case Analysis (2016). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/886/eng@2016-07-20

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