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ELRCPartially AllowedCause No. 287 of 2016· [2019] KEELRC 376 (KLR)

Simeon Omariba Orangi v Robinson Investment Limited [2019] KEELRC 376 (KLR)

Employment and Labour Relations Court of Kenya
17 October 2019
2,225 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 a security guard was underpaid below the legal minimum wage for years, even though he accepted the salary.

What this practically means

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Executive summary

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The claimant, employed by the respondent security firm as a watchman, sued for terminal dues upon resignation on 2nd June 2016: underpayments of Ksh.180,986.71, off/rest days of Ksh.153,350.00, overtime of Ksh.24,654.30, normal overtime of Ksh.536,727.09, annual leave of Ksh.32,544.87, uniform refund of Ksh.600.00 and a certificate of service. The respondent denied the claims, asserting the claimant was an unskilled day watchman paid as agreed, took his leave and off days, worked within legal hours, resigned on notice, was refunded his uniform deposit, paid Ksh.3,000.00 in terminal dues and issued a certificate of service; it also contended the claim was premature for want of referral to a labour officer. The court directed the respondent to file work sheets, leave and off-day records, which it complied with from January 2013. Finding no appointment letter or contract, and relying on payment slips from 2012 and the respondent director's evidence, the court held employment commenced in 2011. Applying the Regulation of Wages (Protective Security Services) Orders, the court found systematic underpayment against the statutory minimum and awarded the full claimed sum of Ksh.180,986.71, inclusive of 15% house allowance, less the Ksh.3,000.00 already paid. Random checks of the worksheets showed no day exceeding 8 hours, defeating the overtime claims; rest-day and annual-leave claims failed on the records; and the uniform refund was already paid. The certificate of service was found erroneous and ordered re-issued for January 2011 to June 2016. The claimant received 50% of his costs.

Key legal issues

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01

Commencement date of employment

Holding

Employment commenced in 2011 despite the certificate of service indicating 18th January 2013, based on payment slips and the respondent's witness evidence

Reasoning

The respondent produced no employment contract, letter of appointment or record setting out commencement of employment. The claimant attached payment slips for February and March 2012, and the respondent's director testified that employment ran from 2011 to 2016. The court therefore treated the employment as effectively commencing January 2011 for purposes of assessment.

p. 3
02

Underpayment claim

Holding

Claimant was underpaid against the applicable Wage Orders; full claim of Ksh.180,986.71 including 15% house allowance awarded

Reasoning

The court compared wages paid against the Regulation of Wages (Protective Security Services) minimum wage for each period from January 2011 to May 2016, computed annual underpayments totalling about Ksh.99,712.00, added house allowance at 15% per year, and found the claimant's tabulation of Ksh.180,986.71 correct and awarded it in full.

p. 3
03

Overtime claim

Holding

Disallowed; worksheet checks showed the claimant never worked over 8 hours per day

Reasoning

The applicable Wage Orders permitted sixty hours spread over six days for night guards. The court conducted a random check of the worksheets for six dates between 2013 and 2015 and found the claimant worked between 3 and 8 hours on those days, never exceeding 8 hours, so the overtime claims had no basis.

p. 3
04

Rest days and annual leave

Holding

Both disallowed; records showed rest days taken in excess and leave taken with acknowledgement

Reasoning

Monthly worksheets showed the claimant worked on average 21-22 days a month, well below the 26 working days expected, meaning he took over 9 days off monthly. His last annual leave (6th to 30th January 2016) was approved with a signed acknowledgement that no off or leave days were owing.

p. 4
05

Ksh.3,000.00 'goodwill' payment

Holding

Deducted from the award despite being labelled goodwill and payment in full settlement

Reasoning

The respondent paid the claimant Ksh.3,000.00 at his request for rent assistance at the end of employment. Although described as goodwill and payment in full settlement, the court held it must be deducted from the total claims allowed.

p. 4

Legal principles established

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  • Where an employee accepts a given wage, the duty to pay the legal minimum wage remains on the employer; paying less than the Wage Order minimum is an underpayment

Court orders

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  1. 1.Judgment entered for the claimant for underpayments of Ksh.180,986.71, payable less Ksh.3,000.00 already paid and acknowledged, and less statutory deductions
  2. 2.Certificate of Service to be re-issued covering the entire duration of service from January 2011 to June 2016
  3. 3.Claimant awarded 50% of his costs

Authorities

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Legislation

  • Private Security Regulation Act2016
  • Regulation of Wages (Protective Security Services) (Amendment) Order-
  • Regulation of Wages (Protective Security Services) Order1998
  • The General OrderLN No. 120/82
  • Legal Notice No.98 of May, 2010minimum wage for security guard

Cases cited (2)

  • Republic v Cabinet Secretary, Labour, Social Security and Protection Ex Parte Isaac G.M. Andabwa, the National general Secretary of the Kenya National Private Security Workers Union
    [2018] eKLR
  • Kenya National Private Security Workers’ Union versus Kenya Kazi Security Services Limited
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Act (employment claim for terminal dues)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Simeon Omariba Orangi v Robinson Investment Limited [2019] KEELRC 376 (KLR)", Case Analysis (2019). Cause No. 287 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/376/eng@2019-10-17

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