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ELRCPartially AllowedCause No 1629 of 2015· [2019] KEELRC 959 (KLR)

Fredrick Juma Oloo v Chandaria Industries Ltd [2019] KEELRC 959 (KLR)

Employment and Labour Relations Court
31 July 2019
1,023 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 upheld a dismissal as fair, but the employer still paid Kshs.121,800 for untaken leave and wages because it kept no leave records.

What this practically means

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Executive summary

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The claimant, employed by the respondent as a turn-boy, was summarily dismissed by letter dated 26.02.2015 following an incident on 10.02.2015 in which goods were allegedly left unoffloaded during a delivery at Valley Arcade Shopping Centre. He sued for declarations of unlawful summary dismissal, notice pay, pay for days worked in February 2015, untaken leave from 2008 to 2015, twelve months' compensation for unfair termination, interest and costs. The respondent contended the claimant failed to respond to a show-cause letter and absented himself from duty from 15.02.2015 to 26.02.2015, warranting summary dismissal, and sought dismissal of the suit with costs. By consent, the suit was determined on the pleadings and documents with written submissions. The court found the claimant not credible, as he never sought production of the written explanation he claimed to have submitted, and his pleadings avoided confronting the actual stated reason for dismissal. The respondent's account was coherent, and Section 45 of the Employment Act, 2007 was held complied with, so the termination was neither unfair in substance nor procedure, collapsing the notice pay and compensation claims. However, the claimant was awarded Kshs.8,400.00 for two weeks worked in February 2015 and Kshs.113,400.00 for untaken leave, the respondent having produced no section 74 leave records. Judgment was entered for Kshs.121,800.00 payable by 15.09.2019, failing which interest would run from filing, plus costs of the suit.

Key legal issues

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01

Whether the summary dismissal was fair in substance and procedure

Holding

The termination was fair; the claimant failed to reply to the show-cause letter by 17.02.2015 and absented himself from duty, and the respondent's account was coherent

Reasoning

The court found the claimant not credible because he never sought production of the alleged written explanation he claimed to have submitted. His pleadings avoided the actual reason for dismissal stated in the letter of summary dismissal (failure to respond) and instead framed the case around the events of 10.02.2015. The respondent's account was coherent: show cause was required, none was given, and the claimant disappeared from work. Section 45 was therefore complied with.

p. 2
02

Entitlement to pay for days worked in February 2015

Holding

Awarded as prayed, Kshs.8,400.00

Reasoning

The court accepted that the claimant was entitled to earnings for the two weeks worked in February 2015 before dismissal, awarding the sum as prayed without deduction.

p. 2
03

Entitlement to untaken leave from 2008 to 2015

Holding

Awarded Kshs.113,400.00 as prayed because the respondent produced no section 74 leave records

Reasoning

The respondent bore the evidential burden of showing leave taken. It provided no records maintained under section 74 of the Employment Act and made no submissions on the issue. On a balance of probabilities, the claimant was held entitled to annual leave under section 28 of the Act and awarded the claimed Kshs.113,400.00.

p. 2

Legal principles established

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  • An employer who fails to produce records maintained under section 74 of the Employment Act to show leave taken bears the adverse finding that leave was not taken
  • A dismissal for failure to respond to a show-cause letter, where the employee absents himself and never tenders the alleged written explanation, may amount to fair termination under Section 45

Court orders

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  1. 1.The respondent to pay the claimant a sum of Kshs.121,800.00 by 15.09.2019 failing interest to be payable thereon from the date of filing the suit till payment in full
  2. 2.The respondent to pay the claimant's costs of the suit

Authorities

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Legislation

  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 74
  • Employment Act, 2007Section 28
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Section 45 invoked)

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, "Fredrick Juma Oloo v Chandaria Industries Ltd [2019] KEELRC 959 (KLR)", Case Analysis (2019). Cause No 1629 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/959/eng@2019-07-31

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