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ELRCPartially AllowedCause No. 2264 of 2015· [2021] KEELRC 1424 (KLR)

Joseph Maina Mwangi v Gathare Bar Hotel & Boarding House [2021] KEELRC 1424 (KLR)

Employment and Labour Relations Court of Kenya
18 February 2021
1,599 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 a watchman employed casually for seven years was legally a permanent employee, so his dismissal without notice or a hearing was unfair.

What this practically means

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Executive summary

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The claimant sued the respondent bar hotel claiming he was employed on 15th May 2008 as a security guard on an oral contract at Ksh.3,500 monthly, later increased to Ksh.5,000, working 6PM to 7AM without rest, and that on 30th July 2015 his employment was terminated without notice, reasons or terminal dues. He sought notice pay, 12 months' compensation, leave pay for 7 years, severance pay, underpayments, a certificate of service and costs. The respondent, despite entering appearance and filing a response asserting the claimant was a casual watchman under a pseudonym who absconded after requesting his wages (prompting a counter-claim for 7 days' notice pay), failed to attend the hearing despite service. The court heard the claimant's uncontroverted evidence. Applying section 37 of the Employment Act, 2007 and Court of Appeal authority, the court held that seven years of continuous casual employment converted the claimant's contract into a term contract protected by the Act. Even on the respondent's desertion case, the employer was bound to follow section 41(2) - notice, hearing and demonstrated measures - which it did not. Unfair termination was found. The court awarded notice pay of Ksh.10,954.70 per the applicable Wage Orders, underpayments of Ksh.320,394, leave pay of Ksh.16,431 limited to 18 months under section 28, and a certificate of service under section 51. Twelve months' compensation and severance pay were not awarded, the latter because the case did not fall under section 40. Judgment was entered for the claimant with costs of the suit.

Key legal issues

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01

Conversion of casual employment under section 37 of the Employment Act, 2007

Holding

The claimant, having worked as a casual employee from May 2008 to 30th July 2015, ceased to be a casual worker and became protected under section 37, entitled to the rights and benefits under the Act

Reasoning

The court applied the established doctrine that continuous casual employment in duties not expected to end converts the contract by operation of law. Relying on Court of Appeal authority under section 37, the claimant's seven-year continuous service as a watchman/security guard converted his oral casual contract into a term contract entitling him to monthly wages, leave and other statutory benefits.

p. 2
02

Whether the termination of the claimant's employment was unfair

Holding

The termination was unfair; there was no valid reason, notice or hearing

Reasoning

The respondent alleged the claimant absconded after requesting his wages, but failed to attend the hearing and produced no work records under section 10(6) and (7) of the Employment Act. The court found that even desertion requires notice, hearing under section 41(2) and demonstration of measures taken. The claimant's testimony that he was dismissed without notice was more probable, so termination without valid reason or hearing was unfair.

p. 3
03

Entitlement to remedies: notice pay, leave pay, severance pay and underpayments

Holding

Notice pay of Ksh.10,954.70 (per applicable Wage Orders for an accommodated night guard), leave pay of Ksh.16,431 limited to the last 18 months under section 28, and underpayments of Ksh.320,394 per the applicable Wage Orders were awarded; severance pay was declined as the case did not fall under section 40

Reasoning

The court applied the applicable Wage Orders to compute a night guard's gross wage and awarded notice on that basis. Leave pay was restricted to basic pay for the last 18 months under section 28 of the Act. Severance pay is payable only under section 40 (redundancy), which did not apply. Underpayments were computed month-by-month against the Wage Order rates for the period May 2009 to July 2015.

p. 3

Legal principles established

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  • A casual employee in continuous employment undertaking duties not expected to end ceases to be a casual worker and becomes protected under section 37 of the Employment Act, 2007
  • An employee alleged to have deserted duty is subject to summary dismissal only upon notice and hearing under section 41(2) of the Employment Act, and a report should be filed with the Labour Officer
  • It is not sufficient for an employer to cite the employee for desertion; the employer must demonstrate the measures taken to address the alleged misconduct
  • Employment must terminate for a valid reason and upon the employee being given a hearing and notice

Court orders

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  1. 1.Judgment entered for the claimant against the respondent in the following terms: (a) Notice pay Ksh.10,954.70; (b) Underpayments Ksh.320,394; (c) Leave pay Ksh.16,431; (d) Certificate of service shall issue; and (e) Costs of the suit
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations claims (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, "Joseph Maina Mwangi v Gathare Bar Hotel & Boarding House [2021] KEELRC 1424 (KLR)", Case Analysis (2021). Cause No. 2264 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1424/eng@2021-02-18

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