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ELRCPartially AllowedNot stated in judgment (memorandum of claim dated 20th March, 2017)· [2021] KEELRC 55 (KLR)

Victor Ngugi v Africabs Tours Limited [2021] KEELRC 55 (KLR)

Employment and Labour Relations Court
9 December 2021
905 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 driver was unfairly sacked because the employer offered no reason, awarding him Kshs.113,000 but rejecting his overtime claim.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a driver from April 2013 until 30th June 2016 at a monthly salary of Kshs.14,500, filed a memorandum of claim dated 20th March 2017 seeking terminal dues: leave pay for 4 years, one month's salary in lieu of notice, overtime and public holiday pay, and 12 months' salary as compensation for unfair termination, plus costs and interest. He averred that on 30th June 2016 he was whimsically denied access to the premises and his services were terminated with immediate effect, without payment of terminal dues despite demands. Service was effected on the Respondent's advocates, Isinta & Company Advocates, but no response was filed; the matter proceeded undefended on 29th September 2021, with the Claimant filing a supporting affidavit and written submissions. The court held that the Respondent having adduced no evidence, the Claimant's evidence stood unchallenged, and under Section 45 of the Employment Act, 2007 an employer must prove a valid reason for termination. Applying Kenfreight E.A. Limited v Benson K. Nguti (2016) eKLR, the court found the termination unfair and unprocedural. The court awarded notice pay of Kshs.14,500, leave pay of Kshs.40,500 (the Respondent having produced no records to the contrary) and compensation reduced from the 12 months claimed to 4 months at Kshs.58,000, totalling Kshs.113,000 plus interest until full payment and costs. The overtime and public holidays claim was declined as an unproved abstraction.

Key legal issues

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01

Fairness of the termination

Holding

Termination was unfair and unprocedural as the employer gave no reason and adduced no evidence

Reasoning

The Respondent was served but filed no response, so the Claimant's evidence was uncontroverted. Under Section 45 of the Employment Act, 2007, an employer must prove a valid and fair reason for termination and follow fair procedure. In the absence of any explanation from the employer, the termination could only be unfair and unprocedural. The court followed Kenfreight E.A. Limited v Benson K. Nguti on the duty to explain reasons for termination in the employee's presence.

p. 2
02

Terminal dues entitlements

Holding

Notice pay, leave pay for 4 years and 4 months' compensation awarded; overtime claim declined as unproved

Reasoning

Having found the termination unfair, the court awarded one month's salary in lieu of notice and unpaid leave for 4 years, noting the Respondent did not produce records to disprove the leave claim. The overtime and public holidays claim failed for want of proof. The court reduced the claimed 12 months' compensation to 4 months' salary.

p. 2

Legal principles established

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  • An employer cannot terminate employment without a valid reason; the burden lies on the employer to prove the reason for termination.
  • Unchallenged uncontroverted evidence stands where the respondent does not file a response.

Court orders

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  1. 1.1 month salary in lieu of notice of Kshs.14,500/=
  2. 2.Unpaid leave for 4 years of Kshs.40,500/=
  3. 3.Compensation for unfair termination of 4 months' salary, Kshs.58,000/=
  4. 4.Total award of Kshs.113,000/= plus interest and costs
  5. 5.Costs of the cause awarded to the Claimant
  6. 6.Interest awarded until full payment
  7. 7.Overtime and public holidays claim declined

Authorities

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Legislation

  • Employment ActSection 45(1)
  • Employment ActSection 45(2)
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B

Cases cited (1)

  • KENFREIGHT E.A. LIMITED VS BENSON K. NGUTI
    (2016) eKLR
Jurisdiction invoked
Original jurisdiction under the Employment Act, 2007 (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, "Victor Ngugi v Africabs Tours Limited [2021] KEELRC 55 (KLR)", Case Analysis (2021). Not stated in judgment (memorandum of claim dated 20th March, 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/55/eng@2021-12-09

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