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ELRCPartially AllowedCause No. 1254 of 2013· [2016] KEELRC 1234 (KLR)

Mary M Mwangi v Sofia Mangina t/a Athens Leather Products [2016] KEELRC 1234 (KLR)

Employment and Labour Relations Court of Kenya
31 March 2016
2,741 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer who fired a worker without a hearing, and kept no records, was ordered to pay over Kshs.500,000.

What this practically means

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Executive summary

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The claimant, employed as a Shop Attendant from 27th January 2006 at a monthly salary last computed at Kshs.15,500, was terminated on 30th March 2013 after the respondent telephoned the shop, heard a child in the background, and dismissed her on the spot for bringing her child to work. She claimed notice pay, accrued leave, service pay, salary arrears, house allowance and compensation for unfair termination. The respondent, though it filed a defence alleging abscondment and contesting the quantification of each head, failed to attend the defence hearing; its case was closed for non-attendance and no evidence was called. The court held that an employer must issue a written contract for employment exceeding two months and pay statements under sections 8, 10 and 20 of the Employment Act, and drew an adverse inference from the respondent's failure to produce the attendance book in its possession. Abscondment was not proved; the claimant's absences were attributable to illness with the respondent's permission. The termination was summary and procedurally unfair under section 41, which requires a hearing even for gross misconduct. Applying section 49, the court awarded maximum compensation of 12 months' gross salary (Kshs.186,000), leave of Kshs.31,000 for two years, service pay of Kshs.54,250 for seven years of service given no evidence of NSSF remittance, salary arrears of Kshs.16,000, and house allowance of Kshs.199,950 under section 31. Judgment was entered for the claimant with a declaration of unfair termination, interest at court rates, and a certificate of service. No express costs order was made.

Key legal issues

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01

Whether the Claimant absconded duty as alleged by the Respondent

Holding

Abscondment was not proved; the Respondent produced no records to support the allegation, and the Claimant's absences were with the Respondent's knowledge and approval

Reasoning

The Respondent alleged a chronology of absences but produced nothing to support the averments. The Claimant testified she was absent due to illness with permission. The attendance book in the Respondent's possession, which would confirm days worked and the date of termination, was not produced. The court inferred the record was withheld because it contained evidence against the Respondent, and unchallenged claimant evidence was accepted as truthful.

p. 3
02

Whether the termination was procedurally fair

Holding

The termination was summary and procedurally unfair under section 41 of the Employment Act, as the Claimant was given no hearing

Reasoning

Section 41 requires an employer to give an employee a hearing before termination, at which the employee may state their defence, before any sanction is imposed. The Claimant was simply told to pack her belongings and never return, with no opportunity to explain. The court applied its prior holding that even gross misconduct justifying summary dismissal requires compliance with the mandatory section 41 procedural safeguards.

p. 4
03

Entitlement to remedies for unfair termination and terminal benefits

Holding

Compensation of 12 months' gross salary under section 49, accrued leave, service pay, salary arrears and house allowance were all awarded because the Respondent failed to keep or produce employment records

Reasoning

Because the Respondent issued no written contract, no pay slips and had not remitted NSSF dues, the court drew adverse inferences: leave balances and deductions could not be verified, service pay became payable, and house allowance fell due under section 31 in the absence of a contractual provision. Salary arrears were payable for labour offered. Compensation was computed at the last gross salary of Kshs.15,500 for the maximum 12 months.

p. 5

Legal principles established

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  • An employer must issue a written contract of employment for employment periods exceeding two months, and a written statement at the time of payment of wages
  • Where an employer alleges abscondment but fails to produce attendance records in its possession, the absence is deemed lawful and abscondment is not proved
  • Procedural fairness under section 41 of the Employment Act is mandatory even in cases of gross misconduct warranting summary dismissal

Court orders

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  1. 1.A declaration that the Claimant was unfairly terminated by the respondent
  2. 2.Compensation awarded at Kshs.186,000.00
  3. 3.Leave due Kshs.31,000.00
  4. 4.Service pay Kshs.54,250.00
  5. 5.Salary arrears Kshs.16,000.00
  6. 6.House allowance Kshs.199,950.00
  7. 7.Interests on the due amounts at Court rates
  8. 8.The Claimant to be issued with a Certificate of Service

Authorities

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Legislation

  • Employment Actsection 8
  • Employment Actsection 10
  • Employment Actsection 20(1) and (2)
  • Employment Actsection 44(4)
  • Employment Actsection 41
  • Employment Actsection 49
  • Employment Actsection 28
  • Employment Actsection 35
  • Employment Actsection 31(1)

Cases cited (3)

  • Evelyn Mumbi Ayub versus Zetu Kenya Limited
    Cause No. 572 of 2014
  • Kenya Union of Commercial Food and Allied Workers versus Meru North Farmers Sacco Limited
    [2014] eKLR
  • Henry Ondari versus Top Security Systems Limited
    Cause No. 572 of 2011
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act and the Court's established jurisdiction over claims of unfair termination and terminal benefits)

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, "Mary M Mwangi v Sofia Mangina t/a Athens Leather Products [2016] KEELRC 1234 (KLR)", Case Analysis (2016). Cause No. 1254 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1234/eng@2016-03-31

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