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ELRCPartially AllowedCause Number 28 of 2015· [2016] KEELRC 992 (KLR)

Karisa Charo Kiraga v Crown Petroleum [Kenya] Limited [2016] KEELRC 992 (KLR)

Industrial Court of Kenya
8 July 2016
2,073 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan employer that labels an absent worker a 'deserter' without a fair disciplinary process risks losing an unfair termination case anyway.

What this practically means

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Executive summary

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The Claimant, employed as a Driver by the Respondent from April 2010 at a final monthly salary of Kshs. 25,000, sought leave in December 2013 to attend his daughter's wedding preparations and was granted permission by Director Hassan Sharif, advised to keep his phone line open. On returning to work after being called by the Respondent's Turn Boy, he found his truck assigned to another driver and learned he had been dismissed, receiving only Kshs. 7,000 as terminal dues. The Respondent denied dismissal, asserting the Claimant deserted employment to join Mortex Limited, and notified the Labour Office of desertion on 24th December 2013. The court found no firm evidence of desertion: the Claimant was on authorised leave with no agreed return date, was never asked to show cause, and no disciplinary process was set in motion. Sections 41, 43 and 45 of the Employment Act 2007 were disregarded, rendering the termination unfair. However, under Section 49(4)(k), the Claimant's covert job-seeking and lack of a clear return date contributed to the termination, so compensation was limited to one month's salary. The court awarded Kshs. 25,000 compensation, Kshs. 25,000 notice pay, and annual leave pay of Kshs. 71,600 computed at the statutory 21 days per year for 3 years 7 months, totalling Kshs. 121,600, payable within 30 days. The gratuity claim failed for want of evidence, and no order was made on costs and interest. Dated and delivered at Mombasa on 8th July 2016 by Rika J.

Key legal issues

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01

Whether the Claimant deserted employment or was unfairly dismissed

Holding

The Respondent failed to prove desertion; the Claimant was on authorised leave and was dismissed without notice, reason or disciplinary process, making the termination unfair

Reasoning

The Claimant left with the Director's permission to attend his daughter's wedding preparations, with no fixed return date agreed. He was recalled by the Turn Boy and on reporting back found his truck assigned to another driver. The Respondent never wrote to him to show cause, never convened a disciplinary process, and merely notified the Labour Office of desertion. Sections 41, 43 and 45 of the Employment Act were disregarded.

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02

Quantum of compensation for unfair termination

Holding

The Claimant's conduct - going on leave without a return date and covertly seeking employment elsewhere - contributed to the termination, warranting only minimal compensation of one month's salary under Section 49(4)(k)

Reasoning

Under Section 49(4)(k) the court must consider employee conduct that caused or contributed to termination. The Claimant went job-hunting without notifying his employer and had faced similar desertion allegations in another cause. Though the employer terminated irregularly, the Claimant's covert conduct contributed, so compensation was limited to one month's salary of Kshs. 25,000.

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03

Entitlement to notice pay and annual leave pay

Holding

Notice pay granted because the contract was not terminated regularly; annual leave pay granted at the statutory minimum of 21 days per year for 3 years 7 months, computed at Kshs. 71,600

Reasoning

Having found the employer failed to terminate through a regular or disciplinary process, the court allowed one month's salary in lieu of notice. On leave, desertion does not disentitle a statutory benefit; the Claimant worked 3 years 7 months without leave, and the court computed 21 days per year (75.25 days) at his daily rate, granting Kshs. 71,600 rather than the claimed 30 days over 4 years.

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Legal principles established

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  • The burden lies on the employer to demonstrate the reason or reasons for termination, and termination must follow Sections 41, 43 and 45 of the Employment Act
  • Desertion does not disentitle an employee to a benefit conferred by law
  • An employer alleging desertion must set in motion a regular termination process and call the employee to answer the charge
  • Employee conduct contributing to termination justifies reduced compensation under Section 49(4)(k)

Court orders

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  1. 1.Declaration that termination was unfair, but the Claimant's conduct contributed to termination
  2. 2.One month salary in compensation for unfair termination at Kshs. 25,000
  3. 3.Notice pay at Kshs. 25,000
  4. 4.Annual leave pay at Kshs. 71,600
  5. 5.Total award of Kshs. 121,600 payable within 30 days of delivery of the decision
  6. 6.No order on costs and interest

Authorities

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Legislation

  • Industrial Court [Procedure] Rules 2010Rule 27(1)(a); Rule 21
  • Employment Act 2007Sections 28(1)(a), 35, 41, 43, 45, 49(4)(k)
Jurisdiction invoked
Industrial Court [Procedure] Rules 2010, Rules 21 and 27(1)(a); dispute over unfair and unlawful termination under the Employment Act 2007

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, "Karisa Charo Kiraga v Crown Petroleum [Kenya] Limited [2016] KEELRC 992 (KLR)", Case Analysis (2016). Cause Number 28 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/992/eng@2016-07-08

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