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ELRCPartially AllowedCause No. 231 of 2017 (consolidated with Causes Nos. 232-240 of 2017)· [2019] KEELRC 1469 (KLR)

Salesa Guyo Boru & 9 others v Jianxi Zhongmei Engineering Construction Company Limited [2019] KEELRC 1469 (KLR)

Employment and Labour Relations Court
4 June 2019
3,748 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Ten road project workers won unfair dismissal compensation because their employer couldn't produce written contracts and payslips, but late claims for overtime and allowances failed.

What this practically means

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Executive summary

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Ten claimants, employed at various dates by the Respondent on the Marsabit-Turbi (A2) Road construction project, sued for wrongful and unprocedural dismissal and failure to pay terminal benefits. The causes were consolidated with Cause No. 231 of 2017 (Salesio Guyo Boru) as the lead file. They sought declarations that the termination was unlawful and payment of two months' salary in lieu of notice, gratuity/service benefits, compensation for unfair termination, underpayment, annual leave dues, unpaid house allowance, Sunday underpayments, costs and interest, alleging breach of the Employment Act and a Collective Bargaining Agreement signed on 27th July 2012. The Respondent admitted the employment but maintained that the Claimants held fixed-term contracts tied to the project, which automatically lapsed on completion of their assignments between 2014 and 2015, and that separations were mutually agreed with all dues paid. Evidence was adduced by affidavit plus oral testimony of the lead Claimant; the Respondent called no witness. The court held that the Respondent, having failed to avail appointment letters and payslips required under Sections 9, 20 and 74 of the Employment Act, failed under Section 43 to prove a valid and fair reason for termination, and awarded each Claimant three months' salary as compensation. However, the claims for house allowance, overtime, public holidays and severance pay failed for want of proof and were also statute-barred as continuing injuries under Section 90, the suits having been filed nearly three years after the 2014 separations. Costs were capped at Kshs. 15,000/- per cause with consolidated costs of Kshs. 150,000/-, and judgment was entered for each Claimant with individualized awards.

Key legal issues

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01

Whether the dismissals were unfair and unlawful

Holding

Yes - the Respondent failed to prove a valid and fair reason for termination and each Claimant recovers 3 months' salary as compensation

Reasoning

The Respondent asserted that the Claimants held appointment letters and payslips but did not avail them. Section 9(1)(b) requires written contracts and Section 20 provides for itemized pay statements. Given the obligations under Section 74, and the evidential burden under Section 43, the Respondent failed to prove a fair or valid reason for termination, entitling each Claimant to compensation for unlawful dismissal.

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02

Whether the claims for overtime, house allowance, public holidays and severance pay were proved

Holding

No - those heads failed, and the continuing-injury claims were also statute-barred under Section 90 of the Employment Act

Reasoning

The Claimants left employment in 2014 but filed suit in 2017, almost 3 years later. Overtime and house allowance claims are continuing wrongs under Section 90, actionable within 12 months of cessation of the breach. The court found the authorities relied upon by the Respondent on continuing injury instructive and declined to award these heads.

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03

Whether costs should be awarded separately in each cause or only in the consolidated file

Holding

Each cause gets capped costs of Kshs. 15,000/- with consolidated costs of Kshs. 150,000/- and no further costs upon consolidation

Reasoning

The court noted the Claimants could have filed a single suit instead of 10 replicas, and capped costs accordingly, balancing the multiplicity of suits against the entitlement of each Claimant to costs. The Respondent's submission that costs be limited to the consolidated file alone was not fully adopted.

p. 3

Legal principles established

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  • Where the employer fails to avail written contracts and payslips as required by Sections 9, 20 and 74 of the Employment Act, it fails to discharge its burden under Section 43 to prove a valid and fair reason for termination
  • Continuing injury or damage must be actioned within twelve months next after cessation thereof

Court orders

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  1. 1.Award of 3 months' salary compensation for unlawful dismissal to each of the 10 Claimants (Cause 231: Kshs. 56,160/-; 232: Kshs. 42,042/-; 233: Kshs. 38,376/-; 234: Kshs. 31,824/-; 235: Kshs. 31,824/-; 236: Kshs. 35,802/-; 237: Kshs. 40,326/-; 238: Kshs. 51,182/-; 239: Kshs. 42,042/-; 240: Kshs. 51,182/-)
  2. 2.Consolidated costs of Kshs. 150,000/-

Authorities

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Legislation

  • Employment ActSection 9(1)(b)
  • Employment ActSection 20
  • Employment ActSection 35
  • Employment ActSection 35(6)
  • Employment ActSection 43
  • Employment ActSection 74
  • Employment ActSection 90

Cases cited (10)

  • Stephen Kamau Wanderi & Another v Gladys Wanjiku Kungu
    [2006] eKLR
  • Ali Kulo Godana & 8 Others v Jiangxi Zhongmei Engineering Construction Co. Ltd
    [2017] eKLR
  • Yusuf Jirmo Wario v Jiangxi Zhongmei Engineering Construction Co. Ltd
    ELRC No. 58 of 2016 (unreported)
  • Boniface Mulandi v Ali Barbours Restaurant Limited
    [2016] eKLR
  • Chege Jeremiah & 9 Others vs Jiangxi Zhongmei Engineering Construction Co. Ltd
    [2019] eKLR
  • Peter Asuka v Mutungati Farmers Co-operative Society
    [2015] eKLR
  • Maurice Otieno Oluny v Mombasa Container Terminal Limited & Another
    [2016] eKLR
  • Kenya Hotels & Allied Workers Union v Sportsman’s Arms Hotel
    [2015] eKLR
  • Felix Munyoto v Tea Warehouses Limited
    [2016] eKLR
  • Grace Wangui Ngenye v Wilfred Kiboro & Another
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (first-instance employment cause)

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, "Salesa Guyo Boru & 9 others v Jianxi Zhongmei Engineering Construction Company Limited [2019] KEELRC 1469 (KLR)", Case Analysis (2019). Cause No. 231 of 2017 (consolidated with Causes Nos. 232-240 of 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1469/eng@2019-06-04

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