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ELRCPartially AllowedNot stated in judgment· [2020] KEELRC 144 (KLR)

Benard Muli v Stanmore Security Services Limited [2020] KEELRC 144 (KLR)

Employment and Labour Relations Court
4 December 2020
1,119 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This was an undefended employment claim filed on 31st August 2015 in the Employment and Labour Relations Court at Nairobi by a former security guard against Stanmore Security, a private security company said to have employed him from 7th May 2012 to 2015. The claimant alleged that his last assignment at Pachohome Building ended on 7th May 2015 when the Respondent's contract lapsed; the Respondent promised to pay his outstanding salary for April and May 2015 and reassign him, but never did either. He alleged unfair termination without any disciplinary process, having earned Kshs.7,000 per month at termination. He sought general damages for wrongful dismissal, unpaid salary for April 2015 and seven days of May 2015, one month's notice pay, three years' service pay, three years' annual leave, costs and interest. The claim proceeded by written submissions and documentary evidence under Rule 21 of the ELRC (Procedure) Rules, 2016. Holding that a claimant in an undefended claim must first prove the employment relationship, Maureen Onyango J found the claimant's bank statements showing monthly salary deposits by Stanmore Security or its agents sufficient proof on a balance of probabilities. The court awarded the full reliefs computed on statutory minimum wage terms applicable in 2015, relying on Sections 3(6) and 26 of the Employment Act and Section 48 of the Labour Institutions Act: pay in lieu of notice Kshs.12,597; April 2015 salary Kshs.12,597; seven days' May salary Kshs.3,392; three years' leave Kshs.26,542; service pay for three years Kshs.18,896; and compensation of four months' salary Kshs.50,388, totalling Kshs.124,412, plus costs to the claimant. Judgment was delivered virtually on 4th December 2020 under the COVID-19 directions.

Key legal issues

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01

Proof of employment relationship in an undefended claim

Holding

The claimant proved the employment relationship on a balance of probabilities through bank statements showing monthly salary deposits by the Respondent or its agents

Reasoning

The claimant produced bank statements for the period from 7th October 2013 to 17th August 2015 showing monthly deposits of Kshs.5,860 and later Kshs.7,000 by Stanmore Security or its agents, with the last payment on 10th April 2015. This corroborated the claimant's evidence that salary was paid up to March 2015, and the undefended averments stood uncontroverted.

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02

Unfair termination and entitlement to terminal dues

Holding

Having found an employment relationship, the claimant was entitled to unpaid salary for April and 7 days of May 2015, one month's pay in lieu of notice, service pay, annual leave and compensation; compensation was set at four months' salary

Reasoning

The claimant was never subjected to any disciplinary process and was not issued a letter explaining the reason for termination; the Respondent failed to pay salary for April and May 2015 or to post him to another assignment. These averments were uncontroverted in the undefended claim, entitling the claimant to the statutory reliefs, with compensation calibrated to the circumstances of termination and length of service.

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03

Basis of the award - statutory minimum wage

Holding

The award was based on the statutory minimum wage terms relevant at the time of termination, pursuant to Sections 3(6) and 26 of the Employment Act and Section 48 of the Labour Institutions Act

Reasoning

The claimant submitted that the applicable statutory minimum wage for 2015 was Kshs.10,954 and produced a copy of the Gazette notice for minimum wages for 2015. The court adopted the statutory terms of service relevant at the time of termination rather than the contractually paid lower salary.

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Legal principles established

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  • In an undefended claim, the claimant must first prove the existence of an employment relationship before relief can be granted
  • Awards in undefended employment claims may be based on statutory minimum wage terms applicable at the time of termination

Court orders

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  1. 1.Pay in lieu of notice (consolidated) Kshs.12,597
  2. 2.Salary of April 2015 Kshs.12,597
  3. 3.Salary of 7 days worked in May 2015 Kshs.3,392
  4. 4.Leave for 3 years (based on basic pay) Kshs.26,542
  5. 5.Service pay for 3 years Kshs.18,896
  6. 6.Compensation (4 months' salary) Kshs.50,388
  7. 7.Total award of Kshs.124,412 to the Claimant against the Respondent
  8. 8.The respondent shall pay the Claimant's costs

Authorities

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Legislation

  • Employment ActSection 35(1)(c)
  • Employment ActSection 36
  • Employment ActSection 28(1)(a)
  • Employment ActSection 35(5)
  • Employment ActSection 3(6) and Section 26
  • Labour Institutions ActSection 48
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 21
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (3)

  • Monica Karimi Mutua v Al Arafat Shopping Centre and Another
    (2018) eKLR
  • Elijah Kipkoros Tonui v Ngara Opticians t/a Bright Eyes Limited
    (2014) eKLR
  • Herman Ilangarwa Shidakwa v Armah Security Solutions Limited
    (2019) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims (Employment Act; ELRC (Procedure) Rules, 2016)

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, "Benard Muli v Stanmore Security Services Limited [2020] KEELRC 144 (KLR)", Case Analysis (2020). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/144/eng@2020-12-04

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