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ELRCPartially AllowedNot stated in judgment· [2020] KEELRC 537 (KLR)

John Kahaguri Maina v Premier Tervan Hotel Limited & 2 others [2020] KEELRC 537 (KLR)

Employment and Labour Relations Court
7 August 2020
3,262 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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The claimant, John Kahuguri Maina, sued Premier Tervan Hotel Limited and its two directors, Charles Gathogo and Emily Maina, for unfair and unlawful termination of employment. He alleged he was employed as Hotel Manager on 25th March 2016 at a salary of Kshs.80,000 per month and terminated verbally by phone on 17th/18th June 2016 without notice, reason or hearing, and claimed notice pay, twelve months' compensation, salary arrears, service charge, costs and interest. The respondents admitted he worked for them but said he was a cook engaged on a contract for services, that he was on probation, that his salary was Kshs.70,000 and that he had been paid for April and May. The court framed three issues: whether the claimant was on probation, whether the termination was unfair, and entitlement to reliefs. Applying Section 2 of the Employment Act, the court held that a probationary contract must be in writing and expressly so state; none was produced, and the probation defence was raised only in submissions. On fairness, the claimant having discharged his burden under Section 47(5), the court found the verbal phone-call termination without reasons or hearing breached Section 41 and was unfair. The court rejected the argument that the claimant's filed documents were not evidence, noting Rule 25 of the ELRC Procedure Rules. On quantum, it accepted the Kshs.80,000 salary under Section 10(7), holding RW1's contrary testimony to be uncorroborated hearsay since the 3rd respondent did not testify. Judgment was entered for Kshs.408,000 comprising notice (Kshs.80,000), two months' compensation (Kshs.160,000), salary arrears (Kshs.165,000) and a Kshs.3,000 refund; the service charge claim was dismissed for want of proof. Costs were assessed at Kshs.50,000 all inclusive with interest from the date of judgment.

Key legal issues

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01

Whether the claimant was on probationary employment

Holding

The claimant was not on probation as no written probationary contract was produced; the probation plea was raised only in submissions and was never pleaded or part of the evidence.

Reasoning

Section 2 of the Employment Act requires a probationary contract to be in writing and to expressly state it is for a probationary period. The respondents produced no such written contract, so probation could not be presumed. Further, the plea of probation was raised for the first time in submissions and was absent from the Memorandum of Response and RW1's testimony, and could therefore not sustain the defence.

p. 3
02

Whether the termination was unfair

Holding

The termination was unfair: it was verbal, without reason and without an opportunity to be heard, contrary to Section 41 of the Employment Act.

Reasoning

The claimant was called by the 2nd respondent while on his way to work and told not to report; RW1 confirmed the phone-call termination. No valid reasons were given or proved, and no hearing was accorded. Section 41 procedure was not complied with, and the employee having discharged his burden under Section 47(5), the termination was unfair.

p. 4
03

Whether the agreed salary was Kshs.80,000 and the quantum of arrears

Holding

The court accepted the claimant's evidence of a Kshs.80,000 monthly salary, holding RW1's contrary evidence to be uncorroborated hearsay at variance with the pleadings, and awarded salary arrears.

Reasoning

Section 10(7) placed the burden on the employer, who failed to produce a written contract. RW1's evidence that the salary was agreed at Kshs.70,000 by his wife was hearsay since the 3rd respondent, who allegedly agreed and paid the salary, neither testified nor filed a witness statement. Her evidence was also at variance with the respondents' pleadings, so the court credited the claimant's account including the unreimbursed Kshs.3,000 paid to police.

p. 4

Legal principles established

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  • A probationary contract of employment must be in writing and expressly state that it is for a probationary period; probation cannot be presumed
  • Where an employer fails to produce a written contract, the burden of proving or disproving an alleged term of employment rests on the employer
  • Documents already filed and part of the court record need not be formally produced as exhibits; the court may determine a suit on pleadings, documents and submissions

Court orders

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  1. 1.Notice pay of Kshs.80,000
  2. 2.Compensation for unfair termination of Kshs.160,000 (two months' salary)
  3. 3.Salary arrears of Kshs.165,000
  4. 4.Refund of Kshs.3,000
  5. 5.Total judgment of Kshs.408,000 against the Respondents
  6. 6.Costs of the suit assessed at Kshs.50,000 all inclusive, with interest from the date of judgment

Authorities

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Legislation

  • Employment ActSection 10(6), 10(7), 2, 41, 42(4), 43, 45, 47(5), 47(6), 49
  • Employment and Labour Relations Court (Procedure) RulesRule 21, Rule 25(1)-(4)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d), Article 48

Cases cited (3)

  • Patrick Lumumba Shiroya v Nairobi Upperhill Hotel
    [2016] eKLR
  • Joseph Okelo Adhiambo & Another v Y. J. Elmi & 2 Others
    [2012] eKLR
  • Alphonce Maghanga Mwanchanya v Operations 680 Limited
    Industrial Cause No. 146 of 2012
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (not expressly cited in judgment)

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, "John Kahaguri Maina v Premier Tervan Hotel Limited & 2 others [2020] KEELRC 537 (KLR)", Case Analysis (2020). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/537/eng@2020-08-07

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