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ELRCPartially AllowedCause No. 999 of 2016· [2017] KEELRC 1993 (KLR)

Abdalla Kusimba Makokha v Prime Steel Mills Limited [2017] KEELRC 1993 (KLR)

Employment and Labour Relations Court of Kenya
28 September 2017
884 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 a 'casual' worker who worked continuously for over a month becomes a full employee entitled to protection from unfair dismissal.

What this practically means

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Executive summary

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The claimant, employed by the respondent in April 2012 as a Maintenance Helper on casual terms at a daily wage, worked continuously for three and a half years without a written contract until his termination in June 2015. He sued for notice pay of Kshs.13,320.00, overtime pay of Kshs.545,454.00 for 6,552 hours, leave pay and damages for unfair termination. The respondent was served but filed no appearance or defence; the court heard the claimant's uncontroverted evidence and assessed the claim on its merits. The court held that under section 37 of the Employment Act, 2007, continuous engagement over a month converts the claimant into a full-time employee entitled to statutory protections. Termination without notice, reason or a hearing was found procedurally and substantively unfair. The court awarded compensation of twelve months' gross pay (Kshs.159,120.00), notice pay of Kshs.13,260.00 and leave pay in lieu of untaken annual leave of Kshs.39,780.00, plus costs. However, the overtime claim was declined: the court found the claimed 6,552 hours did not add up, and the alternative computation in submissions of 5,040 hours used a daily rate of Kshs.444.00 contrary to the claimant's testimony of Kshs.442.00 per day, rendering the claim irrational. Judgment was entered accordingly on 28 September 2017.

Key legal issues

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01

Conversion of casual employment to full-time employment

Holding

The claimant who worked continuously for 3 and a half years without a written contract became a full-time employee by operation of section 37 of the Employment Act, 2007, with all attendant statutory protections

Reasoning

The claimant worked continuously from April 2012 to June 2015 in the same position without a break and without a written contract. Section 37 of the Employment Act, 2007 deems an employee engaged continuously for over a month in the same position a full-time employee whose benefits are protected in law, entitling him to claim rights under the Act.

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02

Fairness of the termination

Holding

The termination without notice, reason or a hearing was procedurally and substantively unfair, entitling the claimant to the remedies for unfair termination

Reasoning

The claimant testified he was not given reasons for his termination and no record of the reasons exists. With no defence filed to controvert the claim, his evidence is taken as true. Termination without notice, reason or hearing violates the Employment Act, 2007, and the remedies sought for unfair termination are therefore due.

p. 2
03

Overtime claim

Holding

The overtime claim of 6,552 hours was declined as irrational and unsupported by the claimant's own evidence and computations

Reasoning

The court attempted to rationalise the claim of 6,552 overtime hours over 38 months but found the figures did not add up. Submissions rationalised 5,040 hours using a daily rate of Kshs.444.00 whereas the claimant testified he earned Kshs.442.00 per day. The inconsistencies meant the claim failed despite the absence of a defence.

p. 2
04

Annual leave entitlement

Holding

Leave pay in lieu of untaken annual leave was awarded at Kshs.39,780.00 for the three years worked

Reasoning

Annual leave is a statutory right under section 28 of the Employment Act. The claimant worked for three years without taking annual leave or being paid in lieu, so leave pay was due and awarded at Kshs.39,780.00.

p. 2

Legal principles established

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  • An employee engaged continuously for over a month in the same position is deemed a full-time employee entitled to statutory protections under section 37 of the Employment Act, 2007
  • Termination of employment without notice, reason or a hearing is procedurally and substantively unfair
  • Where an uncontroverted claim is made in the absence of any defence, the claimant's evidence is taken as true

Court orders

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  1. 1.Judgment entered for the claimant against the respondent for compensation at Kshs.159,120.00 (12 months gross pay)
  2. 2.Notice pay of Kshs.13,260.00 awarded
  3. 3.Leave pay of Kshs.39,780.00 awarded
  4. 4.Costs of the suit awarded to the claimant

Authorities

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Legislation

  • Employment Act, 2007section 37
  • Employment Act, 2007section 28
Jurisdiction invoked
Employment and labour relations jurisdiction over a claim for unfair termination and employment benefits under the Employment Act, 2007

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, "Abdalla Kusimba Makokha v Prime Steel Mills Limited [2017] KEELRC 1993 (KLR)", Case Analysis (2017). Cause No. 999 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2017/1993/eng@2017-09-28

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