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ELRCPartially AllowedCause No. 145 of 2014 (consolidated with Cause No. 2137 of 2014)· [2016] KEELRC 1545 (KLR)

Godfrey Kitoto Ochieng & 25 others v Hydrobuild Construction Co. Ltd & another [2016] KEELRC 1545 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
16 February 2016
2,288 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 ordered an employer who abandoned 26 workers in war-torn South Sudan to pay each of them six months' salary as compensation for unfair, constructive dismissal.

What this practically means

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Executive summary

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The Employment and Labour Relations Court at Nairobi, per M. Mbaru J, disposed of two consolidated causes (Cause No. 145 of 2014 with 8 claimants, and Cause No. 2137 of 2014 with 19 claimants) on behalf of 26 former employees of Hydrobuild Construction Co. Ltd and its director John Otieno Ooko. The claimants, welders and other workers employed in Kenya but allocated to work in South Sudan, alleged unpaid salaries and unfair termination. Most issues were settled by consents filed in October and December 2015, covering salary arrears and terminal dues; the outstanding issues were notice pay, damages for unfair termination, interest, costs, and specific sums due to the 1st and 9th claimants. The respondents filed no defence and did not appear through counsel; the 2nd respondent conceded no defence had been filed. The 1st claimant testified that the respondents abandoned the workers in South Sudan amid civil war without salaries or directions, forcing them to seek alms and return to Kenya. Applying Emmanuel Mutisya Solomon v Agility Logistics, the court held that the abandonment and intolerable conditions amounted to constructive dismissal, and that termination without reasons breached sections 43 and 45 of the Employment Act. Judgment was entered for the claimants with compensation of six months' gross pay each, itemised per claimant; costs of the suit were awarded and unconditional certificates of service ordered. Interest was declined since terminal dues had been paid by consent.

Key legal issues

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01

Whether the Claimants were unfairly terminated

Holding

Yes. With no defence filed and no written reasons given for termination, the terminations were unfair labour practices contrary to section 45 of the Employment Act, and the Claimants were constructively dismissed after being abandoned in South Sudan.

Reasoning

The Respondents filed no defence despite being given opportunity. The court found that the employees were left in South Sudan under intolerable conditions of civil war without salaries, forcing them to abandon employment and return to Kenya. Failure to issue reasons or notice breached sections 43 and 45 of the Employment Act. The abandonment was at the instance of the Respondents and constituted constructive dismissal, entitling the Claimants to compensation.

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02

Quantum of compensation

Holding

Compensation for each Claimant at 6 months' gross pay, assessed on each Claimant's last gross salary, itemised at paragraph 26(a) to (z).

Reasoning

In the absence of any evidence from the Respondents as to their circumstances, the court considered an award of 6 months' gross pay appropriate for each Claimant. Amounts were computed from the last gross salaries paid (e.g. Kshs.31,000.00 yielding Kshs.186,000.00; Kshs.26,350.00 yielding Kshs.158,100.00). Terminal dues had been settled by consent; interest was declined on that basis.

p. 5
03

Notice pay and interest

Holding

Notice pay was not provided for in the final orders; interest was refused because terminal dues were paid by consent; costs were awarded to the Claimants.

Reasoning

The uncontested claim remained unopposed by any defence or evidence. The court reasoned that with terminal dues paid by consent, the payable dues would not attract interest. The Claimants were found entitled to costs given the unwarranted preliminary objections and the 2014 filing date. The final orders granted compensation, costs and certificates of service only.

p. 5

Legal principles established

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  • Termination without reasons or notice, in the absence of a defence, is unfair and contrary to sections 43 and 45 of the Employment Act
  • Abandonment by an employer, exposing an employee to intolerable conditions that force the employee out of work, amounts to constructive dismissal

Court orders

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  1. 1.Judgment entered for the Claimants against the Respondents
  2. 2.Compensation at 6 months gross pay awarded to each Claimant as set out under paragraph 26(a) to (z)
  3. 3.Costs of the suit awarded to the Claimants
  4. 4.Certificates of Service to be issued unconditionally forthwith
  5. 5.No interest on the amounts awarded since terminal dues were paid by consent

Authorities

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Legislation

  • Employment Actsection 43
  • Employment Actsection 35(4)
  • Employment Actsection 45
  • Employment Actsection 46
  • Court Rules (Employment and Labour Relations Court)Rule 9

Cases cited (3)

  • Max Masoud Roshankar versus Sky Aero Limited, Cause No.1519 of 2014 consolidated with Mariana Onica versus Sky Aero Limited, Cause no.1518 of 2014
  • Augustine peter Obirik versus Card Centre Limited, Cause no.677 of 2012
  • Emmanuel Mutisya Solomon versus Agility Logistics, Cause No.1448 of 2011
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under its establishing law; Cause filed under the Court Rules

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, "Godfrey Kitoto Ochieng & 25 others v Hydrobuild Construction Co. Ltd & another [2016] KEELRC 1545 (KLR)", Case Analysis (2016). Cause No. 145 of 2014 (consolidated with Cause No. 2137 of 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1545/eng@2016-02-16

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