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ELRCPartially AllowedPetition dated 13th February 2019, filed 19th February 2019 (Meru ELRC)· [2019] KEELRC 660 (KLR)

Hussein Guyo v County Government of Isiolo & another [2019] KEELRC 660 (KLR)

Employment and Labour Relations Court
4 October 2019
3,062 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan employer cannot backdate a change to your employment terms; any re-designation only takes effect from the date you are actually notified.

What this practically means

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Executive summary

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The Petitioner, appointed a Ward Administrator on permanent and pensionable terms on 21st February 2014 and re-designated Human Resource Officer I with effect from 1st August 2014, challenged a letter dated 9th July 2018 by which the 2nd Respondent varied his terms from permanent and pensionable to a five-year contract backdated to 3rd March 2014. He alleged breach of Section 4 of the Fair Administrative Action Act and Articles 20, 21, 22, 27(5), 41(1) and 47 of the Constitution, seeking declarations, prohibition, general damages and costs. The 2nd Respondent raised a preliminary objection on jurisdiction, contending the Petitioner should have appealed to the Public Service Commission under Section 77(3) of the County Governments Act and Section 87 of the Public Service Commission Act, and that the petition was time barred, res judicata given the determination of JR No. 14 of 2017 concerning his suspension, and an abuse of process, the variation having followed a payroll audit that found his permanent appointment irregular owing to his age. The court first disposed of the jurisdiction question, applying the Owners of Motor Vessel Lilian S principle that jurisdiction is everything. It held the suspension issue settled and barred by res judicata and issue estoppel, but the re-designation and backdating were new matters. On the merits, it found the Petitioner was not afforded the Section 4 safeguards of notice, written reasons, information and a hearing, and that a 2018 decision could not reverse his contract back to its 2014 execution date. The petition was allowed in part: the five-year contract takes effect from 9th July 2018, the permanent and pensionable terms subsist until that date, and the Respondents were ordered to bear the costs.

Key legal issues

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01

Jurisdiction and exhaustion of internal appeal mechanisms

Holding

The court entertained the petition notwithstanding the failure to appeal to the Public Service Commission, because the petitioner sought enforcement of constitutional rights to fair administrative action where no written reasons were furnished, making an appeal impracticable

Reasoning

The 2nd Respondent objected under Section 77(3) of the County Governments Act and Section 87 of the Public Service Commission Act. The Petitioner argued that without written reasons for the variation there was nothing to appeal within the 90-day limit, and that Article 22 entitled him to approach the court directly on violation of Article 41(1) and 47 rights. The court proceeded to determine the petition on its merits rather than downing its tools.

p. 2
02

Res judicata regarding the suspension

Holding

The issue of the Petitioner's suspension, having been determined in JR No. 14 of 2017, was settled and not open for re-litigation

Reasoning

The court distinguished the suspension, which was litigated in JR No. 14 of 2017 and is settled, from the re-designation and backdating, which was new and had not been litigated. Res judicata and issue estoppel apply to the suspension issue only.

p. 3
03

Validity of the backdated re-designation to a 5-year contract

Holding

The backdated variation violated Section 4 of the Fair Administrative Action Act and could only take effect from 9th July 2018, the date of the impugned letter

Reasoning

The Petitioner was not given prior notice, written reasons, an opportunity to be heard, or information on the audit report relied upon before his terms were altered. The court held that a 2018 decision could not reverse the contract to the date of its original execution in 2014. The permanent and pensionable terms therefore subsist until 9th July 2018, after which the 5-year contract takes effect.

p. 3

Legal principles established

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  • An employer cannot validly re-designate an employee's terms from permanent and pensionable to contract and backdate the re-designation to the date of the original employment contract; a backdated variation must take effect from the date it is made
  • Administrative action adversely affecting rights must afford the safeguards in Section 4 of the Fair Administrative Action Act, including written reasons and an opportunity to be heard
  • Jurisdiction is everything; a court without jurisdiction must down its tools
  • Issues already determined in prior proceedings attain finality and cannot be re-litigated; res judicata and issue estoppel apply

Court orders

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  1. 1.The employment contract of the Petitioner is re-designated as being on a 5 year contract effective the date of re-designation, i.e. 9th July 2018
  2. 2.The terms of permanent and pensionable entered into at time of employment to subsist until the date of re-designation being 9th July 2018
  3. 3.Costs of the Petition be borne by the Respondents

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 20, 21, 22, 27(5), 41(1), 47
  • Fair Administrative Action ActSection 4(1), (2), (3)
  • County Governments ActSections 74, 75, 77(1), (2), (3)
  • Public Service Commission ActSection 87(2)

Cases cited (5)

  • Mohamed Sheria & 2 Others v Simon Kipkorir Sang & 5 Others
    [2018] eKLR
  • Republic v Secretary, County Public Service Board & Another ex parte Hulbhai Gedi Abdille
    [2017] eKLR
  • David Baariu Mwirabua & 2 Others v Governor Meru County & Another
    [2019] eKLR
  • MV Barbara & Another v MV Joey & Another
    [2000] eKLR
  • The Owners of the 'Motor Vessel Lilian S' v Caltex Oil (Kenya) Limited
    [1989] KLR 1
Jurisdiction invoked
Articles 20, 21, 22, 27(5), 41(1) and 47 of the Constitution; Section 4 of the Fair Administrative Action 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, "Hussein Guyo v County Government of Isiolo & another [2019] KEELRC 660 (KLR)", Case Analysis (2019). Petition dated 13th February 2019, filed 19th February 2019 (Meru ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/660/eng@2019-10-04

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