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ELRCPartially AllowedCause No. 1210 of 2016· [2021] KEELRC 670 (KLR)

Phillip Riunga Matema v Broad Network Transporters Limited [2021] KEELRC 670 (KLR)

Employment and Labour Relations Court of Kenya
14 October 2021
668 words in judgment
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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, Phillip Riunga Matema, sued Broad Network Transporters Limited for unpaid wages, underpayment, notice pay, house allowance, leave pay, service pay, a certificate of service and compensation for unfair termination, alleging he was employed orally in October 2015 as a supervisor at Ksh.20,000 monthly (paid only Ksh.15,000), promoted to security manager at Ksh.25,000, then unpaid from November 2015 when the respondent's director closed operations. The respondent denied the employment relationship, alleging forgery of the documents, but called no evidence and remained absent at the hearing; only the claimant testified and filed submissions. Relying on sections 8, 9 and 10 of the Employment Act, 2007, the court held that oral contracts are permissible and that once suit is filed the employer bears the duty to produce employment records. The respondent, having submitted to jurisdiction, failed to discharge this duty, so the court accepted the claimant's account of employment and its terms. It found that underpayment is an unfair labour practice, that non-payment of wages is unlawful, and that termination without notice breached sections 35, 41 and 45 of the Act, attracting compensation under section 49. The claim was found partially with merit: notice pay of Ksh.25,000, underpayment of Ksh.5,000 and unpaid wages of Ksh.50,000 were awarded, with a certificate of service to issue, all subject to section 49(2). Claims for house allowance, leave days and service pay failed, and each party was ordered to bear its own costs.

Key legal issues

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01

Existence of employment relationship

Holding

The court found an oral contract of employment existed between the claimant and the respondent

Reasoning

Sections 8, 9 and 10 of the Employment Act, 2007 permit oral contracts of employment. Once the claimant filed suit, section 10 placed on the employer the duty to produce work records to prove or disprove employment. The respondent, though served and submitted to jurisdiction, called no evidence and remained absent at the hearing. In the absence of the respondent meeting its statutory duty, the court accepted the claimant's testimony on the oral contract and its terms, and found employment established.

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02

Unfair termination and notice pay

Holding

Termination without notice was unlawful and compensable, but the award was limited to notice pay given the short 3-month tenure

Reasoning

Termination of employment without notice or payment in lieu is unlawful under sections 35, 41 and 45 of the Employment Act, and such malpractice is compensated under section 49. However, considering that the claimant worked for only 3 months, the court held that notice pay of Ksh.25,000 sufficed to address the unfairness, declining any additional compensation for the unfair termination.

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03

Claims for house allowance, leave and service pay

Holding

House allowance, leave pay and service pay claims failed for lack of contractual basis and insufficient length of service

Reasoning

In the absence of a written contract, the court treated the claimant's terms as casual, with the Ksh.25,000 monthly wage already generous, making any further house allowance claim unjust enrichment. The leave claim was not substantiated as to what period accrued the 2 days. Service pay accrues only after a full year of service, which the 3-month tenure did not satisfy.

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Legal principles established

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  • Under section 10 of the Employment Act, once an employee files suit, the duty to produce work records to prove or disprove employment rests on the employer
  • Where the employer fails to meet its statutory duty to produce employment records, the court must believe the employee as to the terms and conditions of employment
  • Underpayment of wages is an unfair labour practice and refusal to pay wages for work done is unlawful

Court orders

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  1. 1.Notice pay at Ksh.25,000
  2. 2.Underpayment Ksh.5,000
  3. 3.Unpaid wages Ksh.50,000
  4. 4.A certificate of service shall issue
  5. 5.Dues at (a), (b) and (c) shall be paid subject to section 49(2) of the Employment Act, 2007
  6. 6.Each party shall bear own costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Cause No. 1210 of 2016); Employment Act, 2007

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, "Phillip Riunga Matema v Broad Network Transporters Limited [2021] KEELRC 670 (KLR)", Case Analysis (2021). Cause No. 1210 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/670/eng@2021-10-14

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