Said Ochieng Odhiambo v Randa Coach Limited [2016] KEELRC 983 (KLR)
The bottom line
#A Kenyan court ruled a security guard was unfairly fired without notice or reasons, awarding him nearly Kshs. 99,000 from his former employer.
What this practically means
#Executive summary
#Key legal issues
#Whether termination was unfair and unlawful
Termination was unfair; the Respondent gave no notice or justification and did not adhere to Sections 41, 43 and 45 of the Employment Act 2007
The Claimant's uncontroverted evidence established 5 years' employment as a Guard at Kshs. 8,000 per month, dismissal without notice or reasons, and a payment of Kshs. 17,000 with no breakdown. The Respondent filed no response and adduced no rebutting evidence, so the Claimant's account stood unchallenged and both substantive and procedural fairness were found to have been disregarded.
Quantum of compensation for unfair termination
Compensation of 10 months' gross salary (Kshs. 80,000) awarded under Section 49 of the Employment Act and Section 12 of the Employment and Labour Relations Court Act
The Court exercised its statutory discretion under Section 49 of the Employment Act 2007 and Section 12 of the Employment and Labour Relations Court Act, granting the equivalent of 10 months' gross salary rather than the 12 months claimed, having found the Claimant merited compensation for the unfair termination.
Entitlement to and computation of service pay
Service pay awarded at Kshs. 27,692.30 computed at 18 days' salary per completed year for 5 years, less the Kshs. 17,000 already paid
The prayer for terminal benefits was understood as a claim for service pay under Section 35(5) of the Employment Act. Applying the Regulation of Wages (Protective Security Services) Order rate of 18 days' salary per completed year for guards with 5 years' service, the Court computed Kshs. 8,000/26 x 18 x 5 = Kshs. 27,692.30, and directed that the Kshs. 17,000 already paid be deducted.
Entitlement to notice pay
One month's salary in lieu of notice (Kshs. 8,000) allowed as prayed under Section 36 of the Employment Act
The Court found the Claimant was dismissed without notice and held that notice pay was merited under Section 36 of the Employment Act, awarding it at the Kshs. 8,000 claimed, which matched his monthly salary.
Legal principles established
#- An employer who terminates employment without notice or justification breaches Sections 41, 43 and 45 of the Employment Act 2007 and compensation may be awarded under Section 49
- Service pay, severance pay and terminal benefits are distinct concepts under employment law and should not be used interchangeably
- Service pay for guards with 5 years' service and above is computed at 18 days' salary for every year completed under the Regulation of Wages (Protective Security Services) Order
Court orders
#- 1.A declaration that termination was unfair
- 2.The Respondent shall pay the Claimant 10 months' gross salary in compensation at Kshs. 80,000; 1 month salary as notice pay at Kshs. 8,000; and service pay at Kshs. 27,692.30, totalling Kshs. 115,692.30 less Kshs. 17,000 - total Kshs. 98,692.30
- 3.The sum shall be paid in full within 30 days of the delivery of the decision
- 4.Costs to the Claimant
- 5.Interest on the principal amount at 14% per annum from the date of the Award
- Jurisdiction invoked
- Section 49 of the Employment Act 2007 and Section 12 of the Employment and Labour Relations Court Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Said Ochieng Odhiambo v Randa Coach Limited [2016] KEELRC 983 (KLR)", Case Analysis (2016). Cause Number 529 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/983/eng@2016-07-08
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.