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ELRCPartially AllowedCause No 738 of 2017· [2020] KEELRC 1215 (KLR)

Daniel Kioko Mwangangi v Gray’s Oak Hotel [2020] KEELRC 1215 (KLR)

Employment and Labour Relations Court
23 April 2020
2,715 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 a waiter was unfairly dismissed because his employer never gave him a hearing, awarding him pay, damages and costs.

What this practically means

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Executive summary

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The claimant, employed as a waiter at the respondent's Kitengela establishment from about 8th August 2014 on a monthly salary of Kshs.9,000 without a written contract or payslips, was sent home on 5th March 2017 on allegations of reporting to work intoxicated, placed on unpaid suspension from 11th to 18th March 2017, and then summarily dismissed by a letter dated 18th March 2017 for the 5th March incident. He sued for a declaration of unlawful, wrongful and unfair termination, notice pay, public holiday pay, house allowance, underpayment, service pay, twelve months' compensation, a certificate of service, costs and interest. The respondent, though served, entered neither appearance nor defence, and the claim proceeded undefended on 25th September 2019 with the claimant testifying alone. Justice Maureen Onyango framed three issues: existence of an employment relationship, fairness of the termination, and entitlement to reliefs. She held that payslips/bank statements and the suspension and dismissal letters proved the employment relationship; that the failure to accord the claimant a hearing or explain the reasons rendered the dismissal unfair and unlawful, adopting the substantive-plus-procedural fairness test; and that the claimant was entitled to notice pay (Kshs.11,900), six months' compensation (Kshs.71,400), service pay (Kshs.13,730.77), house allowance (Kshs.55,335) and public holiday pay (Kshs.11,376.63), plus a certificate of service, costs and interest. The underpayment claim failed because the last salary of Kshs.11,900 exceeded the statutory minimum wage. The judgment contains internal arithmetic and dating inconsistencies flagged above.

Key legal issues

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01

Existence of an employment relationship

Holding

The Claimant proved an employment relationship through payslips evidencing periodic salary payment and suspension and dismissal letters issued by the Respondent

Reasoning

In an undefended claim the claimant bears the burden of proving all facts including the employment relationship. The Claimant produced bank statements/payslips showing periodic salary transfers from the Respondent, plus a suspension letter and dismissal letter issued by the Respondent. With no defence filed, this evidence was uncontroverted and satisfied the burden on a balance of probabilities.

p. 5
02

Wrongful, unfair and unlawful termination

Holding

The termination was unfair and unlawful as the Claimant was not accorded a hearing and no reasons for termination were explained

Reasoning

The Claimant testified that he was never accorded an opportunity to be heard before a disciplinary committee and that reasons for termination were never explained to him. There being no defence, the evidence was uncontroverted. Applying the principle that both substantive justification and procedural fairness are required, the court found the summary dismissal procedurally and substantively unfair.

p. 5
03

Entitlement to reliefs

Holding

Notice pay, six months' compensation, service pay, house allowance, pay in lieu of public holidays and a certificate of service were awarded; the underpayment claim failed

Reasoning

Applying sections 31, 35, 36, 49 and 51 of the Employment Act, the court awarded notice pay based on the last salary of Kshs.11,900 shown in bank statements, six months' compensation for unfair termination, service pay for non-remittance of NSSF, house allowance where salary was not consolidated, and public holiday pay, the employer's records duty leaving those claims uncontroverted. The underpayment claim failed as the last salary exceeded the statutory minimum wage.

p. 5

Legal principles established

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  • For a termination to pass the fairness test there must be both substantive justification and procedural fairness
  • In an undefended claim, the claimant must first establish the existence of an employment relationship before establishing unfair termination
  • Fair procedures under section 41 of the Employment Act are mandatory; non-compliance renders termination procedurally unfair

Court orders

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  1. 1.Declaration implied by finding that the Claimant was unfairly and unlawfully dismissed
  2. 2.Respondent to pay one month's salary in lieu of notice of Kshs.11,900
  3. 3.Respondent to pay six months' salary as compensation for unfair termination, Kshs.71,400
  4. 4.Respondent to pay service pay of Kshs.13,730.77
  5. 5.Respondent to pay house allowance of Kshs.55,335
  6. 6.Respondent to pay pay in lieu of public holidays of Kshs.11,376.63
  7. 7.Respondent to issue the Claimant a Certificate of Service
  8. 8.Claimant awarded costs of the suit and interest at Court rates from the date of Judgment until payment in full

Authorities

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Legislation

  • Employment Act, 2007Sections 9, 10, 31, 35, 35(5), 36, 41, 43, 45, 49, 51, 51(1), 74(1)(i)
  • Regulation of Wages (General) (Amendment) Order, 2013Minimum wage for waiters and waitresses deployed within a municipality (Kshs.9,372.15)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B
  • Constitution of Kenya, 2010Articles 159(2)(d) and 48

Cases cited (9)

  • Josephine M. Akinyi O. v Farhiyo Mohamed
    (2013) eKLR
  • Peter Apolo Ochieng v Amedo Centre Kenya Limited
    (2016) eKLR
  • Kenya Plantation and Agricultural Workers Union v Eastern Produce Kenya Limited
    (2017) eKLR
  • Samuel Muchiri Gikonyo v Henkel Chemicals (EA) Ltd
    (2014) eKLR
  • Meshack Kiio Ikulume v Prime Fuels Kenya Limited
    (2013) eKLR
  • Monica Kanini Mutua v Al-Arafat Shopping Centre & another
    [2018] eKLR
  • Herman Ilangarwa Shidakwa v Armati Security Solutions Limited
    [2019] eKLR
  • Elijah Kipkoros Tonui v Ngara Opticians T/A Bright Eyes Limited
    (2014) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2013) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (claim for unfair termination)

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, "Daniel Kioko Mwangangi v Gray’s Oak Hotel [2020] KEELRC 1215 (KLR)", Case Analysis (2020). Cause No 738 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1215/eng@2020-04-23

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