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ELRCPartially AllowedELRC Cause (filed 11/10/2018)· [2021] KEELRC 1985 (KLR)

Kenya National Private Secureity Workers Union v Guard Force Security Limited [2021] KEELRC 1985 (KLR)

Employment and Labour Relations Court
11 March 2021
888 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 awarded a security guard Kshs.480,325 after his employer retrenched him without notice, consultation, Labour office notification, or payment of dues.

What this practically means

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Executive summary

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The Claimant union sued on behalf of a grievant, a security guard employed orally on 1/1/2015 and stationed at Miwani, KPLC office, initially at Kshs.6,000 per month, later Kshs.7,000. The grievant worked 12 hours daily without overtime pay, took no leave, and was paid below the statutory minimum wage for the security industry. When the respondent's assignment contract ended and was replaced by another company, the employees were not notified; the grievant was simply asked to return his uniform, and his September 2017 salary went unpaid. He stopped working on 30/9/2017. The respondent did not enter appearance or file a defence despite service, which was proved by affidavit. The Court found the claimant had proved on a balance of probability that the grievant was retrenched without following the substantive and procedural requirements of Section 40 of the Employment Act, in violation of Sections 36, 40, 41 and 45, including failure to notify the Labour office. Applying Section 49(1) and (4) and guided by its earlier award in Joshua Mwaniki v Andela Kenya Limited, the Court awarded compensation equivalent to five months' salary (Kshs.61,105) plus terminal benefits: September salary, two years' leave pay (Kshs.24,442), 12 months' overtime (Kshs.84,960) and 57 months' underpayments (Kshs.297,597), totalling Kshs.480,325 with interest at court rates from judgment until payment in full, and costs to follow the event. The judgment was delivered online under COVID-19 directions with the parties' consent.

Key legal issues

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01

Lawfulness of the retrenchment

Holding

The retrenchment was substantively and procedurally unfair under Sections 36, 40, 41 and 45 of the Employment Act

Reasoning

The grievant was employed on an oral contract as a security guard and stopped working on 30/9/2017 when asked to return his uniform without notice, consultation or payment of terminal benefits. The respondent also failed to notify the Labour office. The uncontroverted evidence proved unlawful retrenchment on a balance of probability.

p. 1
02

Entitlement to compensation

Holding

Five months' salary awarded as compensation under Section 49(1) and (4), considering two years' service, no contribution to the termination, and unpaid dues

Reasoning

The Court considered the grievant's two years of service, that he did not contribute to the termination, and that he was not compensated for loss including underpayments, leave pay and salary earned. It applied its approach in the Joshua Mwaniki case where a claimant with 2 years 6 months service received six months' compensation, and awarded five months here.

p. 2
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Terminal benefits

Holding

September salary, two years' leave pay, 12 months' overtime and 57 months' underpayments awarded as claimed

Reasoning

The claimant proved on a balance of probabilities that the grievant was owed and not paid the terminal benefits set out in the Statement of Claim. The respondent was on notice but did not enter appearance or file a defence despite service, leaving the evidence uncontroverted.

p. 2

Legal principles established

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  • Retrenchment must comply with the substantive and procedural requirements of Section 40 of the Employment Act, including notice and notification of the Labour office
  • An employee unlawfully and unfairly terminated who did not contribute to the termination and was unpaid terminal benefits deserves compensation under Section 49

Court orders

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  1. 1.Compensation equivalent of five (5) months' salary for unlawful and unfair termination in the sum of Kshs.61,105
  2. 2.September salary – Kshs.12,221 (stated in the order as Kshs.12,22)
  3. 3.Unpaid two years leave – Kshs.24,442
  4. 4.Unpaid overtime for 12 months – Kshs.84,960
  5. 5.Underpayments for 57 months – Kshs.297,597
  6. 6.Total award of Kshs.480,325 payable with interest at Court rates from date of judgment till payment in full
  7. 7.Costs to follow the event

Authorities

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Legislation

  • Employment ActSections 36, 40, 41, 45, 49(1) and (4)
  • Civil Procedure RulesOrder 21 rule 1
  • Civil Procedure ActSection 18
  • Constitution of KenyaArticles 159(2)(d) and 48

Cases cited (1)

  • Joshua Mwaniki –vs- andela Kenya Limited
    ELRC Cause No. 452 of 2019
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the 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, "Kenya National Private Secureity Workers Union v Guard Force Security Limited [2021] KEELRC 1985 (KLR)", Case Analysis (2021). ELRC Cause (filed 11/10/2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1985/eng@2021-03-11

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