Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No 1408 of 2015· [2019] KEELRC 1000 (KLR)

Evans Gato Orina v Aggreko International Project Limited [2019] KEELRC 1000 (KLR)

Employment and Labour Relations Court
26 July 2019
3,136 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

#

A Kenyan court upheld a dismissal as fair but ordered the employer to pay accrued leave and issue a certificate of service.

What this practically means

#

Executive summary

#
The Claimant, employed by the Respondent as a Generator Technician from 25th September 2008 on a consolidated salary later raised to Kshs.87,886.67, was summarily dismissed on 30th June 2015 following an altercation on 10th June 2015 with security guards at a client's premises in Turkana, where he was denied exit for lack of a gate pass. He sued for a declaration of unfair termination, one month's salary in lieu of notice, unpaid leave, house allowance for 108 months, twelve months' compensation under Section 15 of the Labour Institutions Act, costs, interest and a certificate of service. The court framed two issues: whether the termination was unfair, and whether the reliefs were payable. Applying Section 45 of the Employment Act, it found on a balance of probability that the dismissal was grounded on a valid reason - conduct seriously damaging the company's reputation under Clause 13(g) of the contract, considering the Claimant's own admission that he needed to tone down his temper - and that fair procedure under Section 41 was followed, as he was charged in writing, offered the right to be accompanied, heard by a disciplinary committee, and heard on appeal. The claim for unfair termination therefore failed, as did the prayers for notice pay, compensation and house allowance (the salary being expressly consolidated, following Charity Wambui Muriuki v Total Security Surveillance and departing from the Kuevaco decision). However, as no evidence proved payment of 10 accrued but untaken leave days, the court awarded Kshs.36,619.45 with interest at court rates from filing, subject to statutory deductions, ordered issuance of a hard copy Certificate of Service under Section 51, and awarded the Claimant half the costs as he only partially succeeded.

Key legal issues

#
01

Whether the summary dismissal was grounded on a valid and fair reason

Holding

Yes - on a balance of probability the altercation at the customer's gate and the Claimant's own admission that he needed to tone down his temper established a valid reason under Clause 13 of the contract (conduct seriously damaging the Company's reputation).

Reasoning

The dismissal letter cited use of threats and abusive language towards a customer, contrary to Clause 13(g) of the employment contract. RW1 testified about the gate incident; the Claimant's email and his statements at the disciplinary hearing and appeal admitted the incident and the need to temper his behaviour. The court held it was not natural for a junior officer to summon a supervisor where there was no problem, and found on a balance of probability that a valid reason existed.

p. 4
02

Whether a fair procedure under Section 41 of the Employment Act was followed

Holding

Yes - the Claimant was notified of the charges, offered the right to be accompanied, heard by a disciplinary committee, and heard on appeal.

Reasoning

Section 41 requires the employer to explain the reasons for contemplated termination and to hear the employee's representations, with an option of a companion. The letter of 23rd June 2015 set out the charges and informed the Claimant of his right to be accompanied; he chose to attend alone. Proceedings produced in evidence confirmed he was heard by the disciplinary committee and on appeal, dismissed on 8th July 2015. The court found the respondent proved fair procedure on a balance of probability.

p. 4
03

Entitlement to accrued but untaken leave days

Holding

Partially allowed - the Claimant was entitled to payment for 10 outstanding leave days computed at Kshs.36,619.45, as no evidence showed payment for the outstanding leave despite the July 2015 payslip.

Reasoning

Clause 10 of the contract entitled the Claimant to 25 working days' annual leave. He went on leave shortly after the 10th June 2015 incident but was dismissed on 30th June 2015 while 10 days remained outstanding. The respondent asserted the leave was paid via the July 2015 payslip but produced no leave records; no evidence proved payment of the outstanding leave. The court computed the award as Kshs.87,886.67 x 10/26.

p. 5
04

Whether house allowance is payable on top of a consolidated salary

Holding

No - the salary was expressly consolidated, and the burden lay on the employee to prove it did not include housing allowance.

Reasoning

Clause 7 of the contract provided for a basic consolidated salary. The court held that the description 'consolidated' meant the constant gross salary inclusive of allowances, placing the burden of proving otherwise on the employee. It expressly departed from the Kuevaco v NPC-CITAM decision relied on by the Claimant and instead followed Charity Wambui Muriuki v Total Security Surveillance Limited.

p. 4

Legal principles established

#
  • Unfair termination requires the employer to prove both valid and fair reasons and a fair procedure; for a termination to pass the fairness test there must be both substantive justification and procedural fairness.
  • A consolidated salary includes basic pay and allowances, including housing allowance, and the employee bears the burden of demonstrating otherwise.

Court orders

#
  1. 1.Declaration declined; termination found fair and lawful
  2. 2.Respondent to pay the Claimant Kshs.36,619.45 for 10 days' accrued but untaken leave
  3. 3.Award to attract interest at court rate from the date of filing suit, subject to statutory deductions
  4. 4.Respondent ordered to issue the Claimant a hard copy Certificate of Service duly signed by an authorized officer as required by section 51 of the Employment Act
  5. 5.Claimant awarded half the costs of the suit

Authorities

#

Legislation

  • Employment Act, 2007Section 41(1) and (2)
  • Employment Act, 2007Section 42(1)
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44(4)(d)
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 49
  • Employment Act, 2007Section 51
  • Employment Act, 2007Section 31
  • Labour Institutions ActSection 15

Cases cited (14)

  • Union of National Research and National Institute Staff of Kenya (Unisk) Vs Kenyan Industrial Research and Development Institute (Kirdi)
    (2013) eKLR
  • David Gichana Omuya Vs Mombasa Maize Millers Ltd
    (2014) eKLR
  • Bamburi Cement Limited Vs William Kilonzi
    (2016) eKLR
  • Kenya Union of Employees of Voluntary and Charitable Organisations (Kuevaco) Vs Nairobi Pentacostal Church Christ is the Answer Ministries (NPC- CITAM)
    (2015) eKLR
  • Sarah Wanyaga Muchiri Vs Henry Kathii & Another
    (2014) eKLR
  • Samuel Kalomit Murkomen Vs Telkom Kenya Limited
    (2017) eKLR
  • Alfred Mutuku Muindi Vs Rift Valley Railways Limited
    (2015) eKLR
  • Peter Kithaka Mbawa Vs Coca Cola Juices Kenya Limited, Cause No. 1956 of 2014
    (2018) eKLR
  • Sophia Wambui Muthoni Vs Muramati Sacco Society Limited
    (2014) eKLR
  • Banking Insurance Finance Union (K) Vs Co-operative Bank of Kenya Ltd
    (2019) eKLR
  • Vincent Abuya Obunga Vs Mast Rental Services Limited
    (2019) eKLR
  • Charity Wambui Muriuki Vs M/S Total Security Surveillance Limited
    (2017) eKLR
  • Joseph Sani Orina Vs Hiprora Business Solutions (EA) Limited
    (2017) eKLR
  • Walter Ogal Anuro -v- Teachers Service Commission
    (2013) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Sections 41, 43, 45, 49, 51) and the Labour Institution Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (5)

#

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

Cite this brief

#

Cite this brief

Caselaw, "Evans Gato Orina v Aggreko International Project Limited [2019] KEELRC 1000 (KLR)", Case Analysis (2019). Cause No 1408 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1000/eng@2019-07-26

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