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ELRCPartially AllowedCause No 1065 of 2014· [2018] KEELRC 326 (KLR)

Marijiana Mutiso Mwasya v Panesars Kenya Limited [2018] KEELRC 326 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
30 November 2018
698 words in judgment
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The bottom line

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Kenya's Employment Court ruled that an employer who fails to present evidence at trial loses an unfair termination claim by default.

What this practically means

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Executive summary

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The claimant sued the respondent in the Employment and Labour Relations Court at Nairobi (Cause No 1065 of 2014), pleading that he was employed in July 1999 at a monthly salary of Kshs 46,000 and worked continuously until 17th June 2013, when his services were terminated after he requested a salary increment. He claimed he never took annual leave and was unpaid for 12 days worked. The respondent denied the allegations, asserting it engaged the claimant on a part-time basis as an independent contractor and piece worker paid per units of product delivered. At trial only the claimant gave oral evidence; the respondent's counsel called no witness and filed no documents. The court noted that although the respondent denied an employer-employee relationship, it did not raise the issue as a jurisdictional question of law, and it had earlier engaged with the Ministry of Labour, even sending Kshs 15,000 to the Labour Officer. In the absence of any evidence supporting the independent-contractor assertion, the court deemed the claimant to have been the respondent's employee. It found no reason was given for the termination and that no disciplinary process was followed, holding that the burden of proving the reasons for and fairness of termination lies on the employer. The claimant's claim having remained uncontroverted, the court awarded one month's salary in lieu of notice (Kshs 46,000), seven months' salary as compensation for unfair termination (Kshs 322,000), and costs, subject to taxes and statutory deductions.

Key legal issues

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01

Existence of an employer-employee relationship

Holding

The court deemed the claimant to be the respondent's employee, rejecting the independent-contractor assertion because the respondent led no evidence to establish that relationship

Reasoning

The respondent pleaded that the claimant was an independent contractor engaged part-time as a piece worker, but called no witnesses and filed no documents. It also failed to raise the issue as a jurisdictional question of law and had engaged with the Labour Office, even paying Kshs 15,000 there. In the absence of evidence from the respondent, the plea was unsupported and the claimant's evidence remained uncontroverted.

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02

Unfair and unlawful termination

Holding

The termination was unfair and unlawful: no reason was given for termination and no disciplinary process was followed

Reasoning

The claimant testified he was terminated after requesting a pay rise, without any disciplinary hearing. The respondent adduced no evidence. From the record no reason for termination appeared, and there was nothing to show any disciplinary process. The burden of proof of reasons and fairness lay on the employer, which the respondent failed to discharge.

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03

Effect of uncontroverted evidence

Holding

Where the respondent filed no documents and called no witnesses, the claimant's claim remained uncontroverted

Reasoning

Only the claimant gave oral evidence; the respondent's counsel elected not to call any witness. The statutory burden on the employer to justify termination was therefore not met, and the claimant's pleaded facts stood unchallenged, entitling him to judgment on the heads the court found proved.

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Legal principles established

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  • The burden of proving the reasons for termination of employment and the fairness of the procedure rests on the employer

Court orders

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  1. 1.One month's salary in lieu of notice of Kshs 46,000
  2. 2.Seven months' salary as compensation for unfair termination of service, Kshs 322,000 (total award Kshs 368,000)
  3. 3.Costs of the suit to the claimant
  4. 4.Items (a) and (b) of the award to be subject to taxes and statutory deductions
Jurisdiction invoked
Employment and labour relations jurisdiction over a claim of unfair termination of employment

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, "Marijiana Mutiso Mwasya v Panesars Kenya Limited [2018] KEELRC 326 (KLR)", Case Analysis (2018). Cause No 1065 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/326/eng@2018-11-30

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