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ELRCPartially AllowedCause No. 696 of 2014· [2019] KEELRC 1563 (KLR)

Umbertoh Daniel Nungari v Wildebeest Camp & Travels Limited [2019] KEELRC 1563 (KLR)

Employment and Labour Relations Court
22 May 2019
2,979 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded a dismissed worker Kshs 780,000 because his employer labelled him a consultant but treated him as an employee and fired him without a hearing.

What this practically means

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Executive summary

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The Claimant filed a Memorandum of Claim on 30th April 2014 alleging his termination contravened the rules of natural justice and fair labour practices, and sought one month's salary in lieu of notice, service pay for 7 years, 12 months' salary as damages for unfair dismissal, a declaration of breach, costs and interest. The Respondent denied that the Claimant was its employee, asserting he was a consultant paid by invoices, and denied unfair termination. The Claimant testified he was employed from 2007 as a travel consultant, later Safari Manager, earning Kshs. 60,000 per month, working fixed hours under the Respondent's control. The Respondent's Accounts Manager conceded at the beginning the Claimant was an employee with no documented conversion to consultancy, and no consultancy agreement existed. The Court framed four issues: employment status, validity of reasons, due process and remedies. Relying on the control test, it found the Claimant was an employee. The termination letter cited poor performance, but the Respondent failed to prove service of any warning, and the Claimant was never given an opportunity to be heard, contrary to Sections 41 and 43 of the Employment Act. The Court declared the termination unfair and unjustified. It awarded one month's salary in lieu of notice and 12 months' salary as damages, totalling Kshs. 780,000/= less statutory deductions. Service pay was denied because the Claimant was an NSSF member. Tax and PAYE issues were referred to the KRA. The Respondent was ordered to pay costs plus interest at court rates from the date of judgment.

Key legal issues

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01

Whether the Claimant was an employee or an independent consultant

Holding

The Claimant was an employee of the Respondent, not a consultant.

Reasoning

The appointment letter of 8/8/2007 showed the Claimant held the post of Travel Consultant at employment, received a monthly salary, had an assigned place of work and was directed on the work to perform. The control test from Black's Law Dictionary definitions of employer-employee relationship applied. The Respondent conceded it had no consultancy agreement with the Claimant, undermining its assertion that he was an independent consultant.

p. 4
02

Whether the Respondent had valid reasons to terminate and followed due process

Holding

The Respondent had no valid reasons and did not follow due process; the termination was unfair and unjustified.

Reasoning

The termination letter cited poor performance, but no warnings or cautions were proved to have been served; the alleged warning letter dated 28/10/2013 was denied and its service was never proved. Section 41 required the employer to explain the reasons and hear the employee's representations before termination on poor performance. The Claimant was condemned unheard, and under Sections 43 and 45(2) the employer failed to prove valid and fair reasons and fair procedure.

p. 4
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Remedies for unfair termination

Holding

One month's salary in lieu of notice and 12 months' salary as damages for unfair dismissal awarded; service pay denied.

Reasoning

The Claimant was terminated without any hearing and without notice, warranting notice pay and the maximum statutory compensation under Section 49. Service pay was denied because the Claimant was a member of NSSF. Tax and PAYE issues were referred to KRA. Costs and interest were awarded to the Claimant.

p. 5

Legal principles established

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  • An employment relationship is determined by whether a person serves and is under the control of the employer, including a defined place of work, a salary and direction on the work to be performed.
  • Under Section 43 of the Employment Act, the employer bears the burden of proving the reasons for termination, and failure to do so renders the termination unfair.
  • Termination on grounds of poor performance without warning, explanation and an opportunity to be heard violates Section 41 of the Employment Act and renders the dismissal unfair under Section 45(2).

Court orders

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  1. 1.Payment of 1 month's salary in lieu of notice of Kshs. 60,000/=.
  2. 2.12 months' salary as damages for unfair dismissal of Kshs. 720,000/= (60,000 x 12), total Kshs. 780,000/= less statutory deductions.
  3. 3.Prayer for service pay denied as the Claimant was a member of NSSF.
  4. 4.The Claimant to pursue the issue of Income Tax and Payee with the Kenya Revenue Authority (KRA) as appropriate.
  5. 5.The Respondent to pay costs of the case plus interest at Court rates with effect from the date of judgment.

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 42(1)
  • Employment ActSection 43
  • Employment ActSection 45(2)
  • Employment ActSection 49
  • Employment ActSection 44(3) and (4)
  • Income Tax Act
  • Constitution of KenyaArticles 41 and 47

Cases cited (5)

  • Kenya Hotel & Allied Workers Union v Alfajiri Villas (Magufa Ltd)
    [2014] eKLR
  • Kenneth Kimani Mburu & Another v Kibe Muigai Holdings Limiyed
    [2014] eKLR
  • Abraham Gumba v Kenya Medical Supplies Authority
    [2014] eKLR
  • Polkey (A.P) vs A.E Dayton Service Limited (Formerly Edmund Walker (Holdings) Limited
    (1987)
  • Patrick Lumumba Kimuyu v Prime Fuels (K) Limited
    [2018] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Articles 41 and 47 of the Constitution invoked in the claim)

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, "Umbertoh Daniel Nungari v Wildebeest Camp & Travels Limited [2019] KEELRC 1563 (KLR)", Case Analysis (2019). Cause No. 696 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1563/eng@2019-05-22

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