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ELRCDismissedCause No. 213 of 2016 (Consolidated with Cause No. 212 of 2016)

Ali Indraya Obondo & another v Kapi Limited [2020] KEELRC 885 (KLR)

Employment and Labour Relations Court of Kenya
4 June 2020
2,930 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed a worker's Ksh.1.6 million claim because his inconsistent evidence and employer records proved he was a daily-paid casual employee, not a continuous worker.

What this practically means

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Executive summary

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This first-instance judgment of the Employment and Labour Relations Court at Nakuru by M. Mbaru J decided Cause No. 213 of 2016, which had been consolidated with Cause No. 212 of 2016 (Philip Owino Odhiambo v Kapi Limited) for hearing, with Cause 213 as the lead file. The claimant, Ali Indraya Obondo, claimed he was employed by Kapi Limited from 2010/2011 as a general worker and that his employment was unfairly terminated on 4th May 2016 after he and other employees failed to disclose who stole a grinder from the factory. He sought notice pay, overtime, off-day pay, gratuity, annual leave and compensation totalling over Ksh.1.6 million, invoking sections 41, 43 and 45 of the Employment Act. The respondent denied continuous employment, asserting the claimant was an on-and-off casual worker paid a daily wage of Ksh.484 or Ksh.665, engaged as and when production required. At the outset of the judgment, the court lifted the consolidation, finding it unjust to determine both claims together, and directed that Cause No. 212 be heard separately. On the merits, the court noted glaring contradictions in the claimant's pleaded dates of employment and found the respondent's unchallenged employment records under section 10(7) showed only staggered, daily-paid engagements. Applying section 2 of the Employment Act and the Court of Appeal decisions in Rashid Mazuri Ramadhani v Doshi and Krystalline Salt v Mwakele, the court held the claimant was a casual employee with no continuous service, so notice, gratuity, leave and off-day entitlements and compensation for unfair termination were unavailable. The suit was dismissed in its entirety with costs to the respondent, judgment being delivered electronically on 4th June 2020 pursuant to COVID-19 court-operations directions.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.The nature of employment relationship between the parties
  2. 2.Whether the claims made are due
  3. 3.Who should pay costs

Key legal issues

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01

Nature of the employment relationship

Holding

The claimant was a casual employee engaged on availability of work, paid a daily wage at the end of each day, not in continuous employment

Reasoning

The claimant's pleadings and testimony gave glaringly contradictory dates of employment (2010, 2011, June 2011). The respondent's employment records under section 10(7) were unchallenged and showed work on only staggered days each month with daily payment. Applying section 2 of the Employment Act and the Court of Appeal's decision in Rashid Mazuri Ramadhani v Doshi, the court found the relationship to be casual employment, not continuous service convertible under section 37.

p. 3
02

Whether the claimed dues (notice, overtime, off days, gratuity, annual leave, compensation) are payable

Holding

None of the claims are due; all were dismissed

Reasoning

Notice pay is not due to a casual employee whose engagement ends daily. The claimant admitted overtime was paid at Ksh.21 per hour, making a 6-year overtime claim dishonest. Off-day claims failed since he could not recall working 7 days a week. Gratuity requires a written contract; annual leave under sections 28 and 37 is unavailable to casuals working 6 days weekly. There being no termination of employment, no compensation for unfair termination arises under sections 41, 43 and 45.

p. 4
03

Costs

Holding

Costs awarded to the respondent

Reasoning

The claim having failed in its entirety and being premised on contradictory pleadings, the ordinary rule on costs applied in favour of the successful respondent.

p. 4

Legal principles established

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  • A casual employee is a person paid at the end of each day and not engaged for longer than twenty-four hours at a time, per section 2 of the Employment Act
  • Before converting a casual contract of service under section 37 of the Employment Act, the claimant must establish casual engagement and aggregate service of more than one month

Court orders

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  1. 1.The suit herein is dismissed in its entirety
  2. 2.Costs to the respondent
  3. 3.ELRC Cause No. 212 of 2016 shall be removed and addressed separately
  4. 4.The consolidation of both files is lifted

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the ELRC Act (first-instance employment cause)
Consolidated with
Cause No. 212 of 2016

Relief refused

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Notice pay of Ksh.22,942

Notice pay is not due to a casual employee whose employment is sourced daily and ends daily

p. 4

Overtime pay of Ksh.780,379.55

The claimant's own evidence was that overtime hours were paid at Ksh.21 per hour; claiming 6 years of overtime was dishonest

p. 4

Off days pay of Ksh.520,253.04

The claimant could not recall working 7 days per week; claims for rest/off days lack foundation

p. 4

Gratuity of Ksh.11,710

The claimant was not under a written contract of employment conferring such benefit

p. 4

Annual leave of Ksh.80,297

Annual leave is not available to a casual employee allocated work for 6 days each week; sections 28 and 37 of the Employment Act do not apply

p. 4

Compensation of Ksh.275,304 for unfair termination

The claimant was a casual employee engaged daily; there was no termination of employment, and the claim contradicted his own pleadings and evidence

p. 4

Costs

Costs to the respondent

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

What is clear to the court is that there was no continuous employment of the claimant and for every day he was at work he was paid and acknowledged payment at each end of day.
p. 3Nature of employment - casual, not continuous
Notice pay is not due to a causal employee whose employment is sourced daily and ends daily as defined under section 2 of the Employment Act, 2007.
p. 4Notice pay not due to casual employee
Our reading of Section 37 of the Employment Act reveals that before the court can convert a contract of service thereunder, the claimant ought to establish first, that he/she has been engaged by the employer in question on a casual basis and second, he/she has worked for the said employer for a period aggregating to more than one month.
p. 4Test for conversion of casual employment under section 37
Accordingly, the suit herein is dismissed in its entirety. Costs to the respondent.
p. 4Final orders - dismissal and costs
ELRC Cause No.212 of 2016 shall be removed and addressed separately.
p. 4Lifting of consolidation and separate hearing

Issues in the judgment

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material

The judgment itself notes glaring contradictions in the claimant's pleaded and testified dates of employment

minor

The court first analysed both consolidated claims together, then reversed itself and lifted the consolidation mid-judgment

material

The holding on continuous service is internally inconsistent - the passage contradicts the finding of no continuous employment

minor

The claimant's own testimony quoted in the judgment contradicts his pleaded wage figure

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Ali Indraya Obondo & another v Kapi Limited [2020] KEELRC 885 (KLR)", Case Analysis (2020). Cause No. 213 of 2016 (Consolidated with Cause No. 212 of 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/885/eng@2020-06-04

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