Paulina Thambi Munyeke & 5 others v M/S Barua Estate Limited [2016] KEELRC 1588 (KLR)
The bottom line
#Kenya's Employment Court ruled that long-serving casual labourers become permanent employees, awarding each of seven workers nearly half a million shillings.
What this practically means
#Executive summary
#Key legal issues
#Underpayment of wages
The Claimants were underpaid relative to the gazetted wages order rates and are entitled to the underpayment sums claimed
The court compared the daily rates the Claimants were actually paid (Shs. 80 rising to Shs. 120) with the statutory minimum daily rates under the various wages orders gazetted between 2003 and 2012, which ranged from Shs. 172.70 to Shs. 379.30. On this comparison the court found the Claimants were systematically underpaid and awarded Shs. 343,077.40 per Claimant.
Status of long-serving casual labourers
Claimants who served the Respondent for many years ceased to be casual labourers and were permanent employees
Despite the absence of appointment letters and unclear terms of engagement, the court found the employment relationship established. Because the Claimants served continuously over periods ranging from 9 to over 30 years, they ceased to be casuals and were entitled to be treated as permanent employees both for terminal dues and for protection against dismissal.
Unfair termination and compensation
Each Claimant's termination was unlawful, attracting 1 month's notice pay and 12 months' salary as compensation
The Claimants testified they were terminated for asking for a salary increment without notice, reasons or a hearing. The Respondent never entered appearance or filed a defence and the suit proceeded ex parte. The court found for each Claimant and awarded one month's notice pay of Shs. 11,379 and 12 months' compensation of Shs. 136,548 per Claimant.
Legal principles established
#- A casual labourer who serves an employer for a prolonged, continuous period ceases to be a casual labourer and must be treated as a permanent employee for purposes of terminal dues and termination
Court orders
#- 1.Judgment entered for each of the 7 Claimants as follows: salary underpayments of Shs. 343,077.40; 1 month's salary in lieu of notice of Shs. 11,379; and 12 months' salary as compensation for unlawful termination of Shs. 136,548
- 2.Total award of Shs. 491,004 for each Claimant
- 3.Aggregate award to all Claimants of Shs. 3,437,028
- 4.Costs of the suit to the Claimants
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (unfair termination and wages claims)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Paulina Thambi Munyeke & 5 others v M/S Barua Estate Limited [2016] KEELRC 1588 (KLR)", Case Analysis (2016). Cause No. 96 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1588/eng@2016-02-10
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.