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ELRCPartially AllowedEmployment and Labour Relations Court Claim dated 10th May 2017 (Machakos)· [2020] KEELRC 661 (KLR)

Bakari Abdalla Mwangazi v Kwale International Sugar Company Limited [2020] KEELRC 661 (KLR)

Employment and Labour Relations Court of Kenya
28 May 2020
1,201 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that employers must prove a worker was truly a casual labourer, and awarded unpaid leave pay, but the worker's contradictory evidence sank his bigger claims.

What this practically means

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Executive summary

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The Claimant, Bakari Abdalla Mwangazi, sued Kwale International Sugar Company Limited alleging that his employment, begun in November 2014 at a monthly salary later increased from Kshs. 5,100 to Kshs. 6,300, was terminated in December 2016 without notice, valid reason or a hearing. He sought one month's pay in lieu of notice, leave pay for 12 years, twelve months' compensation for unfair termination, and salary underpayment damages totalling over Kshs. 400,000, plus costs and interest. The Respondent denied terminating him, asserting he was a casual labourer engaged from time to time who simply failed to report to work from June 2015, and that his pay met the agricultural industry minimum wage. The Court framed three issues: the status of the employment, whether termination was unlawful, and entitlement to remedies. It rejected the Respondent's casual-employment assertion because the supervisor who managed and paid the casuals was not called as a witness and no casual employment records were produced; Section 37 of the Employment Act protects employees from exploitation under verbal contracts. On termination, the Claimant contradicted himself on the date of termination (December 2016 versus 22nd September 2015) and so failed to discharge the Section 47(5) burden; the compensation and notice pay claims were disallowed. The underpayment claim was also dismissed as unproved. However, having rejected the casual label, the Court awarded leave pay of Kshs. 8,820 for two years with interest at court rates, plus costs of the suit to the Claimant. The judgment was delivered electronically under COVID-19 directions.

Key legal issues

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01

Nature and status of the Claimant's employment - casual or term contract

Holding

The Respondent's assertion that the Claimant was a casual employee was unproved and rejected.

Reasoning

The Respondent's pleadings and witness statement were internally inconsistent (monthly salary of Kshs. 5,100 versus a daily wage of Kshs. 210). The supervisor who managed and paid the casuals was not called as a witness and no casual employment records were produced. Section 37 of the Employment Act on conversion of casual employment exists to guard against exploitation of employees on verbal contracts. The casual-employee assertion therefore failed.

p. 2
02

Whether the Claimant proved unlawful termination

Holding

The Claimant failed to establish unlawful termination; compensation and notice pay claims disallowed.

Reasoning

Under Section 47(5) of the Employment Act, the burden of proving unfair termination rests on the employee. The Claimant gave December 2016 in the Memorandum of Claim but 22nd September 2015 in his witness statement, with no explanation for the contradiction. An employee who cannot tell the date of termination has not discharged the evidential burden. The Respondent also denied terminating the employment.

p. 2
03

Entitlement to leave pay

Holding

The Claimant is entitled to leave pay, awarded for two years in the sum of Kshs. 8,820.

Reasoning

The Respondent's witness said the Claimant never went on leave because he was a casual. Having rejected the casual-employee status, the Court held the Claimant entitled to leave pay, but limited the award to two years rather than the entire period of employment claimed, entering judgment for Kshs. 8,820 with interest.

p. 2
04

Claim for salary underpayment

Holding

Dismissed as not proved.

Reasoning

The Claimant alleged his salary was below the statutory minimum wage throughout, claiming Kshs. 190,078.30 in underpayment, but the claim was not proved. The Respondent maintained the salary accorded with the applicable minimum wage in the Agricultural Industry, and the Court found the underpayment claim unproved and dismissed it.

p. 3

Legal principles established

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  • An employer asserting that an employee was a casual labourer must prove that assertion; where the supervisor who managed and paid the employee is not called and no casual employment records are produced, the assertion fails and the employee is not a casual employee.
  • Once the casual-employee averment is debunked, an employee who did not go on leave is entitled to leave pay.
  • An employee who cannot tell the date of the termination complained of has not discharged the evidential burden under Section 47(5) of the Employment Act.

Court orders

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  1. 1.Judgment entered in favour of the Claimant in the sum of Kshs. 8,820 being leave pay for two (2) years
  2. 2.Interest on that amount at court rates from the date of judgment until payment in full
  3. 3.Claimant awarded the costs of the case

Authorities

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Legislation

  • Employment ActSection 2 (definition of casual employee)
  • Employment ActSection 37 (conversion of casual employment)
  • Employment ActSection 47(5) (burden of proof)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 18
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 40

Cases cited (1)

  • Josphat Njuguna v High Rise Self Group
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act; claim filed under the Memorandum of Claim procedure)

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, "Bakari Abdalla Mwangazi v Kwale International Sugar Company Limited [2020] KEELRC 661 (KLR)", Case Analysis (2020). Employment and Labour Relations Court Claim dated 10th May 2017 (Machakos). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/661/eng@2020-05-28

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