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ELRCPartially AllowedCause Number 194 of 2015· [2016] KEELRC 1087 (KLR)

Karisa Charo Kiraga v Nakayima Hauliers [K] Limited [2016] KEELRC 1087 (KLR)

Employment and Labour Relations Court of Kenya
22 June 2016
3,053 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 a truck driver's firing was unfair because the employer skipped proper procedures, even though the driver's insubordination justified discipline.

What this practically means

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Executive summary

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The Claimant, a Driver employed by the Respondent transport company on 25 August 2014 at a monthly salary of Kshs. 20,000, challenged the termination of his employment on 18 February 2015. The dispute arose after the Respondent reduced fuel allocation for trucks on the Mombasa-Kampala route from 1,250 to 1,200 litres. The Claimant refused to drive his cargo-laden truck from Zaire Bar to the Respondent's new yard at Port Reitz, parking it near his residence for 3 days until the Respondent engaged a new driver, Issa, who took the keys and drove the truck away. The Claimant sought notice pay, annual leave pay, 12 months' compensation for unfair termination and general damages. The Respondent counterclaimed for loss of user of the vehicle (Kshs. 150,000) and notice pay, contending the Claimant deserted. The court found the Claimant at fault for insubordination, holding fuel allocation was a management prerogative and his refusal to obey reasonable instructions fell within Section 44(1)(e) of the Employment Act. However, the court found termination was in fact effected by the Employer, who withdrew the vehicle, stopped salary payments and never subjected the Claimant to any disciplinary process under Sections 41, 43 and 45 of the Employment Act. Termination was therefore procedurally unfair, but the Claimant's substantial contribution reduced compensation to 1 month's salary. With notice pay, the award totalled Kshs. 40,000. Claims for annual leave pay (ineligible, having served about 3 months) and general damages were rejected, and the Respondent's Counter-claim failed entirely for want of evidence on loss of user.

Key legal issues

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01

Who instigated the termination of employment

Holding

Termination was by the Employer, not desertion by the Claimant

Reasoning

Although the Respondent asserted the Claimant deserted, the court found the Respondent retrieved the truck, engaged a fresh driver, took the ignition keys, stopped paying salary after 18 February 2015, and made no effort to discipline the Claimant or formally end the relationship. In the Claimant's mind the message was that his contract had been terminated by the Respondent. The court was not persuaded that the Claimant voluntarily walked out.

p. 5
02

Whether the Claimant's refusal to drive on reduced fuel amounted to insubordination

Holding

Yes - the Claimant was at fault in declining the employer's instructions

Reasoning

The court held the fuel allocation decision was a management prerogative; it was not for the Claimant to determine fuel sufficiency or advise the Respondent how to manage its business. Other drivers accepted the reduction. By parking the vehicle and refusing to drive for 3 days, the Claimant demonstrated insolence, arrogance and lack of cooperation, constituting insubordination under Section 44(1)(e) of the Employment Act.

p. 4
03

Whether termination was procedurally fair despite substantive justification

Holding

No - termination was unfair for procedural default, with compensation reduced for the Claimant's contribution

Reasoning

The Respondent did not follow Sections 41, 43 and 45 of the Employment Act: the Claimant was not heard, no charges were preferred, and no notice was issued. The court declared termination unfair but found the Claimant substantially contributed to the circumstances, justifying only 1 month's salary as compensation rather than the 12 months sought.

p. 5
04

Whether the Respondent's Counter-claim for loss of user was proved

Holding

No - the Counter-claim was rejected

Reasoning

The Respondent's witnesses did not establish loss of user of 3 days at Kshs. 150,000; nothing was said in the oral evidence of Abdulmajid and Issa, and no document supported the claim. The figure of Kshs. 50,000 per day was a mere sum floated in pleadings and submissions without evidential grounding.

p. 5

Legal principles established

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  • The decision on the amount of fuel allocated to an employer's vehicles is a management prerogative which employees cannot veto
  • Refusal to obey a reasonable order given with proper authority constitutes insubordination under Section 44(1)(e) of the Employment Act
  • Even where an employer has substantive justification to terminate, termination is unfair if the procedure under Sections 41, 43 and 45 of the Employment Act is not followed
  • An employer's conduct, such as withdrawing an employee's tools of work and stopping salary, may evidence termination by the employer notwithstanding a claim of desertion
  • A claim for loss of user must be supported by evidence; a figure floated in pleadings and submissions without evidential grounding will be rejected

Court orders

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  1. 1.It is declared termination was unfair but the Claimant substantially contributed to the circumstances leading to termination
  2. 2.The Respondent shall pay to the Claimant 1 month salary in compensation for unfair termination and 1 month salary in lieu of notice at a total of Kshs. 40,000
  3. 3.Other prayers by both Parties are declined

Authorities

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Legislation

  • Employment ActSections 36, 41, 43, 44(1)(e), 45
  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)

Cases cited (2)

  • National Union of Mineworkers & Another v. Commission for Conciliation, Mediation and Arbitration
    JR 2512/2007
  • Dede Esi Annie Amanor-Wilks v. Action Aid International
    [2014] e-KLR
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010, Rule 27(1)(a); dispute over unfair and unlawful termination of employment

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Karisa Charo Kiraga v Nakayima Hauliers [K] Limited [2016] KEELRC 1087 (KLR)", Case Analysis (2016). Cause Number 194 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1087/eng@2016-06-22

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