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ELRCPartially AllowedMemorandum of Claim dated 6th September 2011 (filed 12th September 2011)· [2019] KEELRC 2485 (KLR)

Benson Owino Komollo & 2 others v TKM Maestro Limited [2019] KEELRC 2485 (KLR)

Employment and Labour Relations Court
18 January 2019
4,410 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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Three Kenyan employees won notice pay and salary arrears but failed to prove their dismissal was unfair after a workplace theft.

What this practically means

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Executive summary

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Three claimants, formerly foremen and senior foreman of TKM Maestro Limited, sued for wrongful and unlawful summary dismissal following a theft at the respondent's workshop on 20th June 2011, claiming notice pay, salary arrears, salary for the remainder of their 3-year contracts, accrued leave, service pay and maximum 12 months' compensation. The respondent denied issuing contracts to the 2nd and 3rd claimants (alleging forgery), justified the summary dismissal under Section 44 of the Employment Act on grounds of negligence and/or collusion in the theft, and counterclaimed Kshs.384,486 for the stolen property. The court held it immaterial whether the 2nd and 3rd claimants had written contracts since the respondent admitted employing them and statutory minimum terms apply. On unfair termination, the court found the claimants bore the burden under Section 47(5) and had not discharged it: they admitted holding workshop keys and that no break-in occurred, and did not establish that no hearing took place. The court awarded each claimant one month's pay in lieu of notice and salary up to 12th July 2011; the 3rd claimant also received pro rata leave of 10.5 days. Claims for housing allowance, service pay (barred by NSSF membership), payment to the end of the contract and maximum compensation failed. The counterclaim was dismissed for want of proof, no inventory, receipts or valuation having been produced. Each party was ordered to bear its own costs.

Key legal issues

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01

Validity of the 2nd and 3rd claimants' contracts

Holding

Immaterial whether the 2nd and 3rd claimants had written contracts; the respondent admitted employing them and the Employment Act recognises oral contracts

Reasoning

The respondent alleged the contracts were forgeries but RW1 admitted the 2nd and 3rd claimants were its employees. Sections 7, 8 and 26 of the Employment Act apply to both oral and written contracts, so the statutory minimum terms govern absent a written contract.

02

Whether termination was unfair

Holding

Claimants did not prove unfair termination; they admitted holding keys to the workshop and that theft occurred without a break-in, and did not establish absence of a hearing

Reasoning

Under Section 47(5) the employee must prove unfair termination occurred; the employer need only justify the grounds. The grounds were negligence leading to theft. The claimants admitted having keys and that there was no break-in. CW1 did not deny being given a hearing; CW2 and CW3 made no reference to a hearing.

p. 7
03

Remedies and entitlements

Holding

Claimants entitled to one month's pay in lieu of notice and salary to date of termination; not entitled to housing allowance, service pay, or the remainder of contract period

Reasoning

The contracts did not provide for termination without notice even for gross misconduct, so notice pay was awarded. Salary arrears to 12th July 2011 were due. Housing allowance was embedded in salary; NSSF membership disentitles service pay; no unfair termination was proved so no compensation for the remainder of the contract.

p. 8
04

Counterclaim

Holding

Counterclaim dismissed as not proved

Reasoning

The investigation report was not produced or shared with the claimants; no inventory, purchase receipts or valuation report proved the listed items were in the workshop or stolen during the robbery.

p. 9

Legal principles established

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  • Where there is no written contract, the statutory minimum terms in the Employment Act apply
  • The employee bears the burden of proving unfair termination while the employer bears the burden of justifying the grounds for termination

Court orders

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  1. 1.Judgment for the 1st Claimant, Benson Owino Komollo: pay in lieu of notice Kshs.49,132 and salary from 1st to 12th July 2011 Kshs.22,676.30, total Kshs.71,808.30
  2. 2.Judgment for the 2nd Claimant, Festus Muema Nguku: pay in lieu of notice Kshs.49,132 and salary for 12 days worked in July 2011 Kshs.22,676.30, total Kshs.71,808.30
  3. 3.Judgment for the 3rd Claimant, Peter O. Suku: pay in lieu of notice Kshs.28,529, salary for 12 days worked in July 2011 Kshs.13,167.20, pro rata leave January to June 2011 (10.5 days) Kshs.11,521.30, total Kshs.53,217.50
  4. 4.The counterclaim is dismissed
  5. 5.Each party shall bear its own costs

Authorities

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Legislation

  • Employment ActSection 44(4)
  • Employment ActSection 41(2)
  • Employment ActSection 45(1) and (2)
  • Employment ActSection 43(1)
  • Employment ActSection 49
  • Employment ActSection 7
  • Employment ActSection 8
  • Employment ActSection 26
  • Employment ActSection 47(5)
  • Employment ActSection 35(5)
  • Employment ActSection 35(6)
  • Evidence ActSections 107, 108 and 109

Cases cited (3)

  • Gilbert Mariera Makori v Equity Bank Limited
    [2016] eKLR
  • Jennifer Nyambura Kamau v Humphrey Mbaka Nandi
    [2013] eKLR
  • Evans Otieno Nyakwana v Cleophas Bwana Ongaro
    [2015] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (first-instance employment claim)

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, "Benson Owino Komollo & 2 others v TKM Maestro Limited [2019] KEELRC 2485 (KLR)", Case Analysis (2019). Memorandum of Claim dated 6th September 2011 (filed 12th September 2011). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2485/eng@2019-01-18

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