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ELRCPartially AllowedCause No. 1342 of 2017· [2020] KEELRC 1292 (KLR)

Gideon Judah Nyumbu v Asille Trading (E.A) Limited [2020] KEELRC 1292 (KLR)

Employment and Labour Relations Court
11 March 2020
1,074 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, Gideon Judah Nyumbu, sued Asille Trading (E.A) Limited claiming that his employment as Assistant Engineer, begun on 1st October 2012 at a monthly salary of Kshs. 26,029/= (later increased to Kshs. 30,000/=), was unlawfully, illegally and unprocedurally terminated on 27th February 2014 without any reason given, and that his terminal dues were never paid despite a labour office letter dated 5/4/2017. He sought a declaration that the termination was unfair and unlawful, gratuity of Kshs. 60,000/=, unpaid leave of Kshs. 91,000/=, compensation of Kshs. 360,000/=, interest, a certificate of service and costs. The Respondent was served but neither entered appearance nor filed a defence, and the matter proceeded as an undefended claim on 5th December 2019, with the Claimant testifying as CW1 and adopting his witness statement and documents. In submissions he relied on Sections 43 and 45 of the Employment Act, 2007 and on authorities including Walter Ogal Anuora v Teachers Service Commission, arguing that termination requires both substantive justification and procedural fairness. Justice Hellen S. Wasilwa found the Claimant had proved employment through his employment I/D and pay records, and that in the absence of any evidence from the Respondent the case remained uncontroverted and the reason for termination unknown. The Court awarded Kshs. 510,000/= less statutory deductions, comprising service pay for 4 years (Kshs. 60,000/=), unpaid leave for 3 years (Kshs. 90,000/=) and 12 months' salary as compensation for unfair termination (Kshs. 360,000/=), ordered issuance of a certificate of service, and awarded costs plus interest at court rates from the date of judgment.

Key legal issues

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01

Whether the termination was substantively and procedurally unfair

Holding

The termination was unfair; no reason was given and the Respondent filed no evidence to justify it, so the Claimant's case remained uncontroverted and proved

Reasoning

The Respondent was served but neither entered appearance nor filed a defence, and the matter proceeded as an undefended claim. The Claimant adopted his witness statement and exhibits, including an employment I/D proving employment as Assistant Engineer and a letter showing a salary increase. The Respondent adduced no evidence explaining why the Claimant's services were terminated. In the absence of any reason, the termination could not satisfy Sections 43 and 45 of the Employment Act, and the Claimant was entitled to judgment as prayed.

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02

Entitlement to compensation and terminal benefits

Holding

The Claimant was awarded service pay for 4 years, unpaid leave for 3 years and 12 months' salary as compensation for unfair termination, less statutory deductions, plus certificate of service and costs

Reasoning

Having found the termination unfair and unprocedural contrary to Sections 43 and 45 of the Employment Act, 2007, the Court exercised its discretion to award the equivalent of 12 months' gross salary as compensation for the unfair termination, together with service pay computed at half month's salary for each year of the 4-year employment and unpaid leave for 3 years, subject to statutory deductions. A certificate of service and costs with interest were also ordered.

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Legal principles established

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  • For a termination of employment to pass the fairness test there must be both substantive justification and procedural fairness
  • In an undefended claim where the Respondent adduces no evidence, the Claimant's uncontroverted case stands proved

Court orders

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  1. 1.Judgment entered for the Claimant as prayed: service pay for 4 years of Kshs. 60,000/=
  2. 2.Unpaid leave for 3 years computed at Kshs. 90,000/=
  3. 3.12 months' salary as compensation for unfair termination of Kshs. 360,000/=, less statutory deductions, total award Kshs. 510,000/=
  4. 4.The Respondent to issue the Claimant with a certificate of service
  5. 5.The Respondent to pay costs of the suit plus interest at court rates with effect from the date of judgment

Authorities

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Legislation

  • Employment ActSections 43 and 45

Cases cited (3)

  • Walter Ogal Anuora Vs Teachers Service Commission
    (2013) eKLR
  • Mary Mutanu Mwendwa Vs Ayudi Ninos De Africa- Kenya
    (2013) eKLR
  • Abisalom Ajusa Magomere Vs Kenya Nut Company Limited
    (2014) eKLR
Jurisdiction invoked
Employment and labour relations dispute under Article 162(2) of the Constitution establishing the Employment and Labour Relations Court

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, "Gideon Judah Nyumbu v Asille Trading (E.A) Limited [2020] KEELRC 1292 (KLR)", Case Analysis (2020). Cause No. 1342 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1292/eng@2020-03-11

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