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ELRCPartially AllowedCause No 802 of 2017· [2020] KEELRC 518 (KLR)

Mbwana Said Mbavu v Kwale Water and Sewerage Company Limited [2020] KEELRC 518 (KLR)

Employment and Labour Relations Court
28 August 2020
3,050 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan water company unfairly sacked a worker for attending a union meeting, because it never gave him a hearing or proved its allegations.

What this practically means

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Executive summary

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The Claimant, a Pipe Technician, sued the Respondent water company for unlawful termination of his contract on 18th November 2016, alleging he was employed from 2005/2006, denied annual leave and public holiday pay, and dismissed without a hearing for attending a trade union meeting at Baraza Park, Kwale. He sought notice pay, leave and public holiday pay for about 10 years, service pay, 12 months' compensation, house allowance, a declaration of unfair termination, a certificate of service, costs and interest, totalling Kshs. 927,377. The Respondent contended he was a casual employee engaged only in 2015, whose contract was due to lapse on 30th November 2016, and justified termination on allegations of illegally collecting customer revenue using lost receipt books, attending an unlawful union meeting during working hours, and forgery. The Court found the employment date contested but, applying Section 10(7) of the Employment Act in the absence of the employer's records, accepted employment from 2006. Both Respondent witnesses conceded the Claimant was never given a show-cause letter nor heard before any disciplinary forum, and the alleged Board resolution was not produced; the substantive allegations were unproved, unpleaded or unpersuasive, and employees are constitutionally entitled to picket and demonstrate. Termination was held unfair both procedurally and substantively. The Court fixed the monthly salary at Kshs. 14,092, awarded 8 months' compensation (Kshs. 112,736), one month's notice pay (Kshs. 14,092) and service pay for 8 years (Kshs. 65,040), totalling Kshs. 191,868, and declined leave, public holiday and house allowance claims. It declared the termination unfair, ordered a certificate of service, costs to the Claimant, a 45-day stay of execution, and interest at 16% per annum thereafter.

Key legal issues

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01

Date of employment

Holding

Employment dated to 2006 based on the Claimant's oral evidence, applying Section 10(7) of the Employment Act where the Respondent produced no conclusive records.

Reasoning

The Claimant gave inconsistent dates (2002 in the demand letter, 2005 in pleadings, 2006 in oral evidence), and the Respondent said 2015. Neither party produced definitive documents, but the Claimant exhibited a letter of appointment dated 27th August 2015 for casual employment, and Respondent witnesses admitted no written contracts were initially issued and could not say when he started. Section 10(7) permits reliance on the employee's oral evidence where the employer fails to keep records, so the corrected oral date of 2006 was accepted.

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02

Procedural fairness of the termination

Holding

Termination was procedurally unfair - the Claimant was never given a show-cause letter nor heard before any disciplinary forum.

Reasoning

Both Respondent witnesses confirmed the Claimant was never called to any disciplinary forum, was not asked to show cause, and was not heard on the allegations. The claimed Board resolution terminating the contract was not produced in court. This breached Sections 41 and 45 of the Employment Act, rendering the procedure a complete failure of fair procedure.

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03

Substantive justification for termination

Holding

No valid reason was established - the allegations of revenue collection with lost receipt books, illegal meeting attendance, and forgery were unproved, unpleaded or unpersuasive.

Reasoning

The revenue-collection allegation was unsupported: no customers were named, no receipts exhibited, no public notice of lost receipt books was issued, and the Managing Director oddly advised customers to seek refunds from the Claimant. The union meeting at Baraza Park was not shown to be illegal, occurred over the lunch break, and employees are constitutionally entitled to picket and demonstrate. The forgery allegation was neither pleaded nor evidenced nor stated to have been considered by the Board.

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04

Remedies and salary figure

Holding

Monthly salary fixed at Kshs. 14,092 based on the casual payroll daily rate of Kshs. 542; compensation of 8 months' salary, one month's notice pay and service pay for 8 years granted.

Reasoning

The Claimant failed to prove his pleaded salary of Kshs. 16,802; the October 2016 casual payroll showing Kshs. 542 daily supported the Respondent's figure of Kshs. 14,092 monthly. Given 10 years of clean service, contracts renewed without fail, and fellow union meeting participants still employed, 8 months' compensation was fair. Service pay was awarded for 8 years from 2007 (when Section 35 became law) to 2015 when N.S.S.F contributions apparently commenced. Leave, public holiday and house allowance claims failed for want of proof.

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Legal principles established

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  • Where an employer fails to produce conclusive documentary evidence of an employee's engagement date, the Court may rely on the employee's oral evidence under Section 10(7) of the Employment Act.
  • Termination without a show-cause letter, disciplinary hearing or opportunity to be heard fails the procedural fairness requirements of Sections 41 and 45 of the Employment Act.
  • Employees are constitutionally entitled to demonstrate and picket to draw attention to grievances; participation in a union meeting is not, without more, a valid reason for termination.
  • Reasons for termination must be pleaded and supported by evidence; reasons raised for the first time in testimony, unsupported by evidence, cannot constitute valid justification under Sections 43 and 45.

Court orders

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  1. 1.It is declared that termination was unfair
  2. 2.The Respondent shall pay to the Claimant: compensation at Kshs. 112,736; notice at Kshs. 14,092; and service pay at Kshs. 65,040 - total Kshs. 191,868
  3. 3.Certificate of Service to issue
  4. 4.Costs to the Claimant
  5. 5.Stay of execution of 45 days allowed
  6. 6.Interest at the rate of 16% per annum from the end of the 45 days allowed

Authorities

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Legislation

  • Employment ActSection 10(7)
  • Employment ActSection 35
  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 45
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (Sections 10(7), 35, 41, 43 and 45 applied); no constitutional provision cited

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, "Mbwana Said Mbavu v Kwale Water and Sewerage Company Limited [2020] KEELRC 518 (KLR)", Case Analysis (2020). Cause No 802 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/518/eng@2020-08-28

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