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ELRCPartially AllowedNot stated in judgment (Cause heard on 8 July 2019)· [2019] KEELRC 696 (KLR)

Mark Mugavi Okani v Eveready Security Guards [2019] KEELRC 696 (KLR)

Employment and Labour Relations Court
8 October 2019
1,204 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's dismissal while on remand was unfair, awarding him damages because his employer skipped legally required procedures.

What this practically means

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Executive summary

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This was a first-instance employment cause heard in the Employment and Labour Relations Court in Nairobi, in which Mark Mugavi Okani (Claimant) sued Eveready Security Guards (Respondent) for unfair termination and related breaches. The Claimant, a security guard employed on 27 July 2009, was arrested after a warehouse he guarded was broken into in September 2012. After release on bond some three months later, he reported to resume work but was refused, with no formal communication terminating his employment; criminal charges were withdrawn in July 2015. The Respondent defended on the basis that the Claimant was in lawful custody beyond 14 days, a ground for summary dismissal, relying on Patrick Irubhai Mwakangalu v Hakika Transport Services Ltd. The Court rejected the adjournment sought by the Respondent for non-compliance with an order to file witness statements, and held that section 44(4)(f) is subject to section 41(2) of the Employment Act; the Respondent, knowing the Claimant's whereabouts, took no formal decision and complied with none of sections 35(1)(c), 41, 43 and 45, so termination was unlawful. The Court awarded four months' salary (Kshs 52,000/-) as compensation, September 2012 wages of Kshs 13,000/-, and novel damages of Kshs 75,000/- for failure to issue a written contract, characterised as an unfair labour practice. Claims for lost income of Kshs 1,092,000/- and damages of Kshs 100,000/- for non-issue of a certificate of service failed for want of proof. The Respondent was ordered to issue a certificate of service and release the Claimant's documents within 15 days. There was no order as to costs.

Key legal issues

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01

Unfair termination of employment

Holding

Unlawful termination found; Respondent did not comply with sections 35(1)(c), 41, 43 and 45 of the Employment Act

Reasoning

The Respondent relied on lawful custody beyond 14 days as ground for summary dismissal, but section 44(4)(f) is subject to section 41(2). The Respondent knew where the Claimant was, took no formal decision to terminate or treat the contract as frustrated, and led no evidence on sections 43 and 45. The Claimant still considered himself employed and reported for work on release.

p. 2
02

Compensation for unfair termination

Holding

Equivalent of 4 months' salary awarded (Kshs 52,000/-)

Reasoning

The Claimant served about 3 years and his gross monthly salary on separation was Kshs 13,000/-. The Court considered these factors in fixing compensation at the equivalent of 4 months' salary, amounting to Kshs 52,000/-.

p. 2
03

Damages for failure to issue a written contract

Holding

Kshs 75,000/- awarded as the failure constituted an unfair labour practice

Reasoning

The Claimant served more than 3 months, so section 10(1) & (2) required a written contract. Though failure to issue one does not void the contract, it may attract quasi-criminal sanctions under section 16. The Court held damages were warranted to deter this prevalent unfair labour practice and fixed them at Kshs 75,000/-.

p. 2

Legal principles established

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  • Section 44(4)(f) of the Employment Act is subject to the requirements of section 41(2) of the Act
  • An employee on remand/release remains entitled to procedural fairness before the contract can be terminated
  • Earned wages are payable as of right
  • Failure to issue a written contract where statutory conditions exist is an unfair labour practice attracting damages

Court orders

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  1. 1.Declaration that the services of the Claimant were unfairly terminated and that the Respondent was in breach of contract
  2. 2.Award of compensation of Kshs 52,000/- for unfair termination
  3. 3.Award of Kshs 13,000/- being September 2012 wages
  4. 4.Award of Kshs 75,000/- damages for failure to issue a written contract (total award Kshs 140,000/-)
  5. 5.Respondent to issue certificate of service and release any documents of the Claimant in its possession within 15 days
  6. 6.No order as to costs

Authorities

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Legislation

  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 41
  • Employment Act, 2007section 41(2)
  • Employment Act, 2007section 44(4)(f)
  • Employment Act, 2007section 43
  • Employment Act, 2007section 45
  • Employment Act, 2007section 9(1)
  • Employment Act, 2007section 10(1) & (2)
  • Employment Act, 2007section 16

Cases cited (4)

  • Patrick Irubhai Mwakangalu v Hakika Transport Services Ltd
    (2017) eKLR
  • George Akuti v G4S Security Services Kenya Ltd
    (2013) eKLR
  • Lawrence Onyango Oduori v Kenya Commercial Bank Ltd
    (2014) eKLR
  • Banking, Insurance and Finance Union v Consolidated Bank of Kenya Ltd
    (2014) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment cause)

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, "Mark Mugavi Okani v Eveready Security Guards [2019] KEELRC 696 (KLR)", Case Analysis (2019). Not stated in judgment (Cause heard on 8 July 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/696/eng@2019-10-08

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