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ELRCPartially AllowedNot stated in judgment· [2018] KEELRC 2056 (KLR)

Monica Wanjiku Kahugu v Boniface Kamau & another t/a Highland Foods [2018] KEELRC 2056 (KLR)

Employment and Labour Relations Court
20 April 2018
903 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 confirmed that workers without written contracts can win terminal dues claims, but only the specific benefits they can actually prove with evidence.

What this practically means

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Executive summary

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The Claimant, a former waitress, sued the Respondents on 10 September 2014 for breach of contract, alleging they failed to pay her terminal benefits upon her resignation. The Respondents contended she left employment without notice and therefore was not entitled to the dues sought, and also contested the period of employment. At the hearing on 26 February 2018, the Court framed three issues: when the employment commenced, whether the Claimant resigned or deserted work, and the appropriate remedies. On the first issue, the Court applied sections 9(2) and 10(2)(d) and (7) of the Employment Act, 2007 and found, on the Claimant's uncontroverted testimony (the Respondents having led no evidence despite pleading a later date), that employment commenced in August 2010. On the second issue, the Court found the Claimant gave verbal notice of resignation effective end of December 2013 and did not desert or abscond. On remedies, the Court awarded Kshs 24,206/50 in lieu of untaken leave under section 10(3) of the Employment Act, 2007, but declined house allowance (not proved as computed), service pay (muddled testimony on NSSF contributions), overtime (no applicable Regulation of Wages Order or particulars of holidays worked), and leave allowance (no legal or contractual basis). NSSF and NHIF unremitted-deduction claims were deferred to statutory mechanisms. The Respondents were ordered to issue a certificate of service within 14 days, and the Claimant received costs on half scale. The judgment was delivered in Nairobi on 20 April 2018 by Radido Stephen, Judge.

Key legal issues

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01

Commencement of employment

Holding

Employment commenced in August 2010, not October 2010 as pleaded by Respondents

Reasoning

The Respondents did not deny or rebut the Claimant's testimony that she was not issued with a written contract. Although the Respondents pleaded a later commencement date of 20 October 2010, they led no evidence to support that contention. Applying sections 9(2) and 10(2)(d) and (7) of the Employment Act, 2007, the Court accepted the Claimant's uncontroverted testimony that she was employed in August 2010.

p. 2
02

Resignation versus desertion

Holding

The Claimant validly resigned with appropriate notice and did not desert

Reasoning

The Claimant testified she gave verbal notice of resignation around 1 November 2013, effective end of December 2013, and did not report after the Christmas holidays. This testimony was not controverted or rebutted. The Court therefore found she gave appropriate notice and did not desert or abscond from work, entitling her to accrued entitlements.

p. 2
03

Entitlement to leave pay

Holding

Claimant awarded Kshs 24,206/50 in lieu of untaken leave under section 10(3) of the Employment Act, 2007

Reasoning

The Claimant testified she never went on annual leave during her tenure. This was not controverted by production of employment records by the Respondents. Having not been granted leave, and in terms of section 10(3) of the Employment Act, 2007, the Court concluded she was entitled to commuted leave pay of Kshs 24,206/50.

p. 2
04

Burden of proof on unproved heads of claim

Holding

House allowance, service pay, overtime, leave allowance and statutory deduction claims failed for want of proof

Reasoning

The Claimant failed to lay legal, contractual or evidential basis for leave allowance; used an inappropriate wage figure for house allowance; gave muddled testimony on NSSF contributions; did not identify the applicable Regulation of Wages Order or particular public holidays for overtime; and produced no evidence of NSSF registration. For NSSF and NHIF claims she was directed to exhaust statutory remedies first.

p. 2

Legal principles established

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  • Where an employer fails to issue a written contract, the employee's testimony as to commencement of employment and terms stands uncontroverted, read with sections 9(2) and 10(2)(d) and (7) of the Employment Act, 2007
  • An employee who gives appropriate notice of resignation does not desert or abscond from work
  • A certificate of service is a statutory right of an employee

Court orders

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  1. 1.Award of Kshs 24,206/50 in lieu of untaken leave
  2. 2.All other reliefs declined
  3. 3.Respondents to issue a certificate of service to the Claimant within 14 days
  4. 4.Claimant to have costs on half scale

Authorities

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Legislation

  • Employment Actsections 9(2), 10(2)(d), 10(7), 10(3)
  • National Social Security Fund ActNot specified
  • National Hospital Insurance Fund ActNot specified
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment relationship disputes (Employment Act, 2007 and Labour Relations Act framework; Article 162(2)(a) not expressly cited)

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, "Monica Wanjiku Kahugu v Boniface Kamau & another t/a Highland Foods [2018] KEELRC 2056 (KLR)", Case Analysis (2018). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2056/eng@2018-04-20

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