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ELRCPartially AllowedNot stated in the judgment· [2019] KEELRC 1336 (KLR)

Michael Manyeki Kariuki & another v Steel Makers Limited [2019] KEELRC 1336 (KLR)

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

The bottom line

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A Kenyan employer who sacks workers without notice or hearing was ordered to pay them a year's salary, plus leave pay.

What this practically means

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Executive summary

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Two Claimants, employed by the Respondent as a Blundler and a Tongs Man Operator in 2011 and March 2003 respectively, sued for unfair termination, notice pay, annual leave pay, service pay and house allowance after their contracts were terminated without notice or hearing in 2015. The Respondent entered appearance but filed no Response, and the claim proceeded by formal proof on 12th February 2019, with the 2nd Claimant testifying on behalf of both. The Court, James Rika J, found uncontested evidence establishing employment, the daily and monthly wage rates, and termination without notice, hearing or valid reason. The Court allowed notice pay, 12 months' salary compensation for unfair termination, and annual leave pay, noting the Respondent did not avail leave records to contradict the Claimants. However, the joint prayer for 'years of service and house allowance' was rejected as murky, bloated and jointly pleaded, with figures inconsistent between the pleadings and closing submissions, and because daily wages under the Regulation of Wages General Order ordinarily include housing allowance. Certificates of Service were ordered to issue, with costs to the Claimants and interest at 14% per annum from the date of judgment until payment in full. Total awards: Kshs. 244,480 for the 1st Claimant and Kshs. 474,438 for the 2nd Claimant. Judgment dated and delivered at Mombasa on 21st June 2019.

Key legal issues

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01

Unfair termination without notice, hearing or valid reason

Holding

Termination was unfair; claimants granted notice pay and 12 months' salary compensation

Reasoning

The Claimants' uncontested evidence established they were terminated without notice, without a hearing and without valid reasons. The Respondent filed no Response and did not participate. Under employment law, termination without notice, hearing and valid reason is unfair, justifying one month's notice pay and the equivalent of 12 months' gross salary as compensation, as pleaded.

p. 2
02

Annual leave pay

Holding

Allowed as sought since the Respondent did not avail leave records to contradict the Claimants' evidence

Reasoning

Oral evidence showed the Claimants did not utilize their annual leave entitlement. The burden shifted to the Respondent to disprove this through annual leave records, which were not availed. Unchallenged evidence on this head was therefore accepted and leave pay allowed as pleaded for both Claimants.

p. 2
03

Service pay and house allowance

Holding

Rejected as murky, jointly pleaded and inflated

Reasoning

The prayer was pleaded jointly without separating service pay from house allowance, and figures in closing submissions differed from those in the Statement of Claim. Further, daily wages under the Regulation of Wages General Order ordinarily include housing allowance, so a separate house allowance claim could not stand.

p. 2

Legal principles established

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  • Uncontested evidence at formal proof establishes employment and the circumstances of termination
  • Termination without notice, hearing or valid reason is unfair and attracts notice pay and 12 months' compensation
  • Where an employer fails to avail leave records to contradict a claimant's evidence, annual leave pay is allowed

Court orders

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  1. 1.Respondent to pay Michael Manyeki Kariuki notice pay Kshs. 14,800; annual leave Kshs. 52,080; and 12 months' salary compensation for unfair termination Kshs. 177,600 - total Kshs. 244,480
  2. 2.Respondent to pay John Randu Kazungu notice pay Kshs. 22,170; annual leave Kshs. 186,228; and 12 months' salary compensation for unfair termination Kshs. 266,040 - total Kshs. 474,438
  3. 3.Certificates of Service to issue
  4. 4.Costs to the Claimants
  5. 5.Interest at 14% per annum from the date of Judgment till payment in full

Authorities

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Legislation

  • Regulation of Wages General OrderNot stated
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over a claim for unfair termination and employment benefits

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, "Michael Manyeki Kariuki & another v Steel Makers Limited [2019] KEELRC 1336 (KLR)", Case Analysis (2019). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1336/eng@2019-06-21

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