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ELRCPartially AllowedCause No. 143 of 2017 (test case, consolidated with a related cause)· [2018] KEELRC 987 (KLR)

Mohamed Suleiman Sumuni & 2 others v One Way Cleaning Services Limited [2018] KEELRC 987 (KLR)

Employment and Labour Relations Court
11 October 2018
953 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 employers must tell workers when the contract underpinning their jobs ends, or face compensation for unfair termination.

What this practically means

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Executive summary

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Three former cleaners of One Way Cleaning Services Limited - Mohamed Suleiman Sumuni, Florence Mutio Mwema and Lamech Ndoro - claimed unlawful and unfair termination of their employment in August 2014 on the ground that their services were no longer required. They sought one month's salary in lieu of notice, twelve months' salary in compensation, certificates of service, costs and interest. None had a written contract. The Respondent denied terminating their employment, asserting that they left on their own after the Respondent's contract with Kenya Ports Authority was terminated, and that the 1st Claimant went to work for Norgen Enterprises, the new contractor. By consent, Cause No. 143 of 2017 was used as the test case. The Court framed two issues: whether unlawful termination was made out, and entitlement to remedies. It found that the Claimants worked on the KPA contract, which expired in June 2014 without renewal, but that the Respondent never notified them of the non-renewal, failing in its obligation to them. The Respondent's assertion that the Claimants voluntarily moved to Norgen Enterprises rested on a photocopied job identity card obtained without authority, to which the Court assigned no probative value; no similar documents existed for the other Claimants. Holding the exit had the marks of unlawful and unfair termination, the Court awarded each Claimant three months' salary in compensation plus one month's salary in lieu of notice, with interest at court rates from the date of judgment, certificates of service, and costs of the case.

Key legal issues

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01

Whether the termination of the Claimants' employment was unlawful and unfair

Holding

The termination was unlawful and unfair because the Respondent failed to notify the Claimants of the non-renewal of its contract with Kenya Ports Authority, which ended their employment

Reasoning

The Claimants were designated to work on the Respondent's contract with Kenya Ports Authority, which expired and was not renewed as communicated to the Respondent by letter dated 25th June 2014. The Respondent, however, never informed the Claimants of this, leaving them unaware their employment was in jeopardy. The Court held the Respondent failed in its obligation, and the Claimants' exit bore the marks of unlawful and unfair termination, entitling them to compensation.

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02

Whether the Claimants left employment voluntarily to work for Norgen Enterprises

Holding

The Respondent's assertion that the Claimants voluntarily left to work for Norgen Enterprises was not proved; the only supporting document was a photocopied job identity card obtained without authority and accorded no probative value

Reasoning

The Respondent's Mombasa Zone Manager alleged the Claimants moved to Norgen Enterprises, which had been awarded the Kenya Ports Authority contract, producing a photocopied job identity card of the 1st Claimant. The witness admitted he had not sought authority to photocopy it, compromising its legality; the Court assigned it no probative value. No similar documents were produced for the 2nd and 3rd Claimants, so the claim of voluntary exit failed.

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What remedies the Claimants are entitled to

Holding

Each Claimant was awarded three months' salary in compensation and one month's salary in lieu of notice, plus certificates of service

Reasoning

Having found unlawful and unfair termination, the Court exercised discretion to award three months' salary in compensation to each Claimant, taking into account their length of service and the fact that termination stemmed from non-renewal of the Respondent's contract with Kenya Ports Authority. A further one month's salary in lieu of notice was awarded, together with certificates of service, interest on the awards, and costs of the case.

p. 2

Legal principles established

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  • An employer must notify employees of the non-renewal of the contract on which their employment depends; failure to do so renders the exit from employment an unlawful and unfair termination
  • A document photocopies without authority has no probative value

Court orders

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  1. 1.Judgment entered in favour of the 1st Claimant of Kshs. 35,200 (3 months' salary in compensation of Kshs. 26,400 plus 1 month's salary in lieu of notice of Kshs. 8,800)
  2. 2.Judgment entered in favour of the 2nd Claimant of Kshs. 34,000 (3 months' salary in compensation of Kshs. 25,500 plus 1 month's salary in lieu of notice of Kshs. 8,500)
  3. 3.Judgment entered in favour of the 3rd Claimant of Kshs. 37,400 (3 months' salary in compensation of Kshs. 28,050 plus 1 month's salary in lieu of notice of Kshs. 9,350)
  4. 4.Award amounts to attract interest at court rates from the date of judgment until payment in full
  5. 5.Claimants entitled to certificates of service
  6. 6.Claimants awarded costs of the case
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment and Labour Relations Court Act; Employment Act)

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, "Mohamed Suleiman Sumuni & 2 others v One Way Cleaning Services Limited [2018] KEELRC 987 (KLR)", Case Analysis (2018). Cause No. 143 of 2017 (test case, consolidated with a related cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/987/eng@2018-10-11

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