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ELRCPartially AllowedCause No 1658 of 2016· [2021] KEELRC 235 (KLR)

John Mwashi Ashanji v Mshamba Housing Co-operative Society [2021] KEELRC 235 (KLR)

Employment and Labour Relations Court
9 December 2021
2,797 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 even when an employee absconds, an employer must follow proper procedure or the dismissal is unfair.

What this practically means

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Executive summary

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The Claimant, a security guard, sued the Respondent society seeking Kshs.723,220.64 in terminal dues, alleging he was employed from September 2005 on permanent terms and unlawfully terminated on 4 June 2015. The Respondent denied permanent employment, asserting he was a casual engaged in 2015 who absconded duty and declined to appear twice before its Board before it engaged another security firm. The Court framed three issues: the nature and duration of employment, whether the Claimant was unfairly terminated or absconded, and entitlement to reliefs. On evidence, the Court found no documentation supporting the claimed 9-year tenure or permanent status and held the employer/employee relationship arose only in 2015, for about five months. On termination, the Court accepted that the Claimant absconded and was not dismissed on 4 June 2015 but on 11 June 2015 after failing to attend a second Board meeting. Nevertheless, the Respondent had led no evidence of how the Claimant was summoned, no charges, no notice to show cause, no dismissal letter and no notification of the Labour Office, so the termination was unfair for want of procedural propriety despite a potentially valid reason. The Court awarded pay in lieu of notice of Kshs.7,000, leave pay of Kshs.2,042, and compensation equivalent to two months' salary under Section 49 of the Employment Act, totalling Kshs.23,042 with costs and interest at court rates. Claims for service pay, payment for nine years' service and 14% interest were declined for want of evidence. Judgment was delivered virtually at Nairobi on 9 December 2021.

Key legal issues

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01

Employment status and duration of service

Holding

The Claimant was not a permanent employee from 2006; parties had an employer/employee relationship in 2015 for about 5 months, the Claimant being a casual.

Reasoning

The Claimant adduced no documentary evidence of employment from 2005 or transition to permanent terms in 2006 - no payslip, appointment letter, NSSF statement or warning letter. The Court found it inconceivable that the salary remained Kshs.7,000 from 2005 to 2015. RW1 testified he was engaged by the new Board in 2015 and absconded after about two months, though the Court found about 5 months of service in 2015.

p. 3
02

Procedural fairness of termination

Holding

The termination was unfair for want of procedural propriety despite the Board meeting the Claimant twice failed to attend.

Reasoning

Although the Respondent credibly showed the Claimant absconded and was summoned twice to the Board, it led no evidence of how he was summoned, produced no charges, no notice to show cause, no dismissal letter and never notified the Labour Office. The employer therefore did not fully discharge its procedural obligations under Sections 41 and 45 of the Employment Act.

p. 4
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Reliefs

Holding

Awarded pay in lieu of notice (Kshs.7,000), leave pay (Kshs.2,042) and two months' salary compensation; declined service pay, 9-year service payment and 14% interest.

Reasoning

The notice claim was uncontroverted. Leave is a statutory entitlement proportionate to about 5 months' service. Under Section 49(1)(c) read with 49(4), compensation was scaled to two months considering short service, the Claimant's substantial contribution to the termination and his failure to demand dues for nearly a year.

p. 5

Legal principles established

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  • A fair termination must comply with Sections 41 and 45 of the Employment Act; even where a valid reason exists, flawed procedure renders the termination unfair.
  • An employer dealing with an absconding employee must take reasonable steps such as a notice to show cause, a dismissal letter or notification of the Labour Office to bring the matter to closure.

Court orders

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  1. 1.Judgment entered for the Claimant for the sum of Kshs.23,042/- with costs
  2. 2.Interest at Court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Employment ActSection 45
  • Employment ActSection 41
  • Employment ActSection 49(1)(c)
  • Employment ActSection 49(4)
  • Employment ActSection 35(5)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (9)

  • Loice Otieno v Kenya Commercial Bank Limited
    [2013] eKLR
  • Shankar Saklani v DHL Global Forwarding Ltd
    [2013] eKLR
  • Harrisson Meshack Lusimbo & another v Mareba Enterprises Limited
    [2013] eKLR
  • Nixon Mandala Malongo v Clifford Okello Rachuonyo & another
    [2014] eKLR
  • CMC Aviation Limited v Mohammed Noor
    [2013] eKLR
  • Boniface Francis Mwangi v B. O. M. Iyego Secondary School
    [2019] eKLR
  • Simon Mbithi Mbane v Intersecurity Services Ltd
    [2018] eKLR
  • Joseph Nzioka v Smart Coatings Ltd
    [2017] eKLR
  • Julius Kyalo Malonza v Ruth Osolo T/A Eraeva Catering Services
    Nairobi Cause No. 301 of 2016
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment cause)

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, "John Mwashi Ashanji v Mshamba Housing Co-operative Society [2021] KEELRC 235 (KLR)", Case Analysis (2021). Cause No 1658 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/235/eng@2021-12-09

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