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ELRCPartially AllowedCause No. 1310 of 2010· [2016] KEELRC 1286 (KLR)

Kenay Building Construction Timber Furniture & Allied Industries Employees Union v Mehta & Sons Limited [2016] KEELRC 1286 (KLR)

Employment and Labour Relations Court of Kenya
22 April 2016
768 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 that workers dismissed shortly after joining a union were wrongfully sacked, awarding them terminal dues plus interest.

What this practically means

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Executive summary

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The claimant union sued on behalf of two grievants, Boniface Kyonano and Joseph Mutisya, seeking terminal dues and compensation for wrongful dismissal. Both grievants were employed by the respondent as drivers (CW1 in November 2000 and CW2 on 3 August 1998) and were summarily dismissed on 11 May 2006. Shortly after joining the union, they were presented with pre-filled leave forms to sign for leave they had not requested; on refusing to sign, they were served with show cause letters for disobeying a lawful order and then dismissed under Section 17(e) of the repealed Employment Act. The respondent never filed a defence and did not attend the hearing on 18 April 2016, so the claim proceeded ex parte. The court found on a balance of probability that the dismissal was wrongful and unjustified, holding that the employer failed to prove any lawful order that the grievants disobeyed, and that the dismissal violated the spirit and letter of Section 17(e) of the repealed Employment Act. The court adopted the Labour Officer's recommendations on unpaid wages, pending leave and service gratuity, and awarded two months' salary in lieu of notice under rule 19(1)(c) of the Regulation of Wages Building and Construction Industry Order 2004, with service gratuity at 14 days' pay per year of service. The claim for compensation for wrongful dismissal was dismissed as not provided for under the repealed law then in force. Judgment was entered for the claimant in the aggregate sum of Kshs 202,520.05 plus interest from the date of dismissal, with costs to the claimant.

Key legal issues

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01

Whether the summary dismissal of the grievants was wrongful and unjustified

Holding

The dismissal was wrongful and in violation of Section 17(e) of the Employment Act (Repealed)

Reasoning

The grievants were presented with pre-filled leave forms to sign without having requested leave, shortly after joining the union. On refusing to sign, they were issued show cause letters for disobeying a lawful order and then summarily dismissed under Section 17(e) of the repealed Employment Act. The court found on a balance of probability that the employer failed to prove any lawful order that was disobeyed, and that the employer had sought to force the grievants on leave using improper methods, rendering the dismissal wrongful and unjustified.

p. 2
02

What terminal dues the grievants are entitled to

Holding

Unpaid wages, pending leave, service gratuity and two months' salary in lieu of notice were awarded

Reasoning

The court adopted the Labour Officer's recommendation that the grievants be paid unpaid wages, pending leave and service gratuity. Notice pay was assessed at two months' salary per rule 19(1)(c) of the Regulation of Wages Building and Construction Industry Order 2004, and service gratuity at 14 days' pay per year of service per rule 19(d) of the same Order. Compensation for wrongful dismissal was refused as it did not exist under the repealed law applicable when the grievants were dismissed in 2006.

p. 2

Legal principles established

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  • An employer alleging dismissal for disobeying a lawful order must prove the order and the disobedience; failure to do so renders the summary dismissal wrongful.
  • Compensation for wrongful dismissal was not available under the repealed Employment Act in force at the time of dismissal.

Court orders

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  1. 1.Judgment entered for the claimant on behalf of the grievants in the aggregate sum of Kshs 202,520.05 plus interest from the date of dismissal
  2. 2.Claimant awarded costs of the suit

Authorities

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Legislation

  • Employment Act (Repealed)Section 17(e)
  • Regulation of Wages Building and Construction Industry Order 2004Rule 19(1)(c) and 19(d)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment terminal dues and wrongful dismissal claims

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, "Kenay Building Construction Timber Furniture & Allied Industries Employees Union v Mehta & Sons Limited [2016] KEELRC 1286 (KLR)", Case Analysis (2016). Cause No. 1310 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1286/eng@2016-04-22

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