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ELRCPartially AllowedCause No 109 of 2018· [2020] KEELRC 1330 (KLR)

Josphat Ombalo Muyoga v Easytrains Limited [2020] KEELRC 1330 (KLR)

Employment and Labour Relations Court
26 March 2020
757 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 endlessly extending an employee's probation without their agreement makes them a regular employee entitled to full unfair-termination protection.

What this practically means

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Executive summary

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The Claimant, employed as a Mechanic on 1st September 2016, was told on 17th June 2017 to hand over the Respondent's assets and leave. He sued for a declaration that the termination was unfair and for salary for 17 days worked in June 2017, one month's notice pay, 12 months' compensation, rest days, public holidays and house allowance arrears, totalling Kshs. 649,832, plus a Certificate of Service, costs and interest. The Respondent maintained he was still on probation under a serially extended probationary contract, that he earned an all-inclusive Kshs. 30,000 monthly, and that he abandoned employment after receiving his May 2017 salary. The Respondent called no evidence. The Court found that the salary was all-inclusive, defeating the house allowance claim, and that no attendance records proved work on rest days or public holidays, so those claims failed. It held that the serial extensions of probation without the employee's agreement contravened Section 42 of the Employment Act, so the Claimant was not on probation at termination. With no reason given and no evidence from the Respondent, the termination was unfair under Sections 41, 43 and 45. The Court awarded Kshs. 22,884 for 17 days worked, Kshs. 35,000 notice pay, and Kshs. 70,000 as 2 months' compensation given his roughly 11½ months of service, ordered a Certificate of Service, and made no order on costs and interest. Judgment dated and delivered at Mombasa on 26th March 2020 by James Rika, Judge.

Key legal issues

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01

Whether the Claimant was on probation at termination

Holding

He was not; the Respondent's serial extensions of probation without the employee's agreement contravened Section 42 of the Employment Act.

Reasoning

The contract provided for a 3-month probation extendable by the Respondent. Section 42 caps probation at 6 months with an extension of not more than 6 months, but only with the employee's agreement. The Claimant denied agreeing to the extensions and the Respondent, which called no evidence, produced nothing showing agreement. The repeated extensions therefore did not keep the Claimant on probation at the time of the 17th June 2017 termination.

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02

Whether termination was fair and for valid reason

Holding

Unfair under Sections 41, 43 and 45 of the Employment Act 2007 - no reason given and no hearing.

Reasoning

The Claimant was abruptly told by the Manager to hand over assets and leave on 17th June 2017. No reason was advanced to justify termination and the Respondent offered no evidence. In the absence of valid reason and fair procedure, the termination was substantively and procedurally unfair under Sections 41, 43 and 45 of the Employment Act.

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Quantum of compensation for unfair termination

Holding

2 months' salary (Kshs. 70,000) awarded in lieu of the 12 months' sought, given the short length of service.

Reasoning

The Claimant worked about 11½ months. Although he bore no responsibility for the abrupt termination, a judicious exercise of discretion would not award the equivalent of 12 months' salary to an employee of such short service. The court fixed compensation at 2 months' salary, balancing length of service against the unfairness of the summary ejection.

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Legal principles established

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  • Probation under Section 42 of the Employment Act shall not exceed 6 months and may be extended by not more than another 6 months only with the employee's agreement; serial extensions without the employee's agreement take the employment outside probation.
  • Where the employer offers no evidence, the court may conclude termination was without valid reason and unfair under Sections 41, 43 and 45 of the Employment Act.

Court orders

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  1. 1.Salary for 17 days worked in June 2017 awarded at Kshs. 22,884
  2. 2.One month's salary in lieu of notice awarded at Kshs. 35,000
  3. 3.Equivalent of 2 months' salary in compensation for unfair termination awarded at Kshs. 70,000
  4. 4.Certificate of Service to issue
  5. 5.No order on costs and interest
  6. 6.Claims for house allowance arrears, rest days and public holidays declined

Authorities

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Legislation

  • Employment Act 2007Section 42
  • Employment Act 2007Sections 41, 43 and 45
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (specific provision not stated 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, "Josphat Ombalo Muyoga v Easytrains Limited [2020] KEELRC 1330 (KLR)", Case Analysis (2020). Cause No 109 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1330/eng@2020-03-26

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