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ELRCPartially AllowedCause No 1427 of 2016· [2022] KEELRC 461 (KLR)

Benjamin Kioko Mutisya v Uzuri Foods Limited [2022] KEELRC 461 (KLR)

Employment and Labour Relations Court
18 March 2022
3,220 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a baker was unfairly sacked because his employer never gave him a hearing or proved he caused the bread damage.

What this practically means

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Executive summary

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The claimant sued Uzuri Foods Limited alleging unfair, illegal and unlawful termination of his employment on 18 February 2015, seeking notice pay, severance pay, salary for January 2015, leave days and compensatory damages. The respondent denied dismissing him, asserting he was a piece rate employee who absconded duty after refusing to write a report on damage to 120 pieces of 400g loaves of bread. The court framed three issues: the nature of the employment relationship, whether termination was unfair, and entitlement to reliefs. On the first, the court found the pay slips showed payment by time (basic salary, house allowance, overtime, monthly pay, statutory deductions and salary advances), not by output, so the claimant was neither a piece rate nor a casual employee but a term employee. On substantive justification, the respondent produced no evidence attributing the bread damage to the claimant, who worked at the depanning stage and blamed poorly oiled baking tins; nor did the respondent attempt to trace the claimant or require him to explain the alleged abscondment. Procedurally, no notice to show cause or hearing was accorded, section 41 being mandatory. The termination was therefore unfair and unlawful under section 45(2) of the Employment Act. The court declared the termination unfair and unlawful, awarded one month's salary in lieu of notice (Kshs 14,204), five months' gross salary as compensatory damages (Kshs 71,020), total Kshs 85,224, with interest at court rates from judgment and costs to the claimant. The remaining heads of claim were dismissed for lack of evidence.

Key legal issues

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01

Nature of the employment relationship - piece rate, casual or term employment

Holding

The claimant was neither a piece rate nor a casual employee but a term employee

Reasoning

The pay slips showed a basic salary plus house allowance and overtime computed on hours worked, indicating payment by time rather than by amount of work, which is inconsistent with piece work. Monthly payment, salary advances and statutory deductions (PAYE, NSSF, NHIF) showed consistent, not intermittent, engagement. Further, the respondent issued a formal termination letter, which is inconsistent with casual employment where abscondment need not be formally terminated.

p. 3
02

Whether the termination was substantively justified

Holding

The respondent failed to prove a valid and fair reason for termination

Reasoning

Although 120 pieces of bread were damaged, no evidence attributed the damage to the claimant, who worked in the depanning section and blamed poorly oiled tins; the damage was not shown to have occurred at the depanning stage. On abscondment, the respondent made no effort to trace the claimant or require him to explain his absence, as the Mary Mumbi Kariuki authority contemplates.

p. 3
03

Whether the termination was procedurally fair

Holding

The claimant was not accorded the mandatory hearing under section 41 of the Employment Act

Reasoning

Section 41(1) and (2) require notification of allegations and an opportunity to make representations before termination or summary dismissal. The respondent neither issued a notice to show cause nor invited the claimant to a hearing, despite citing abscondment. Procedural fairness is mandatory, following Postal Corporation of Kenya v Andrew K. Tanui.

p. 4

Legal principles established

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  • Payment based on time spent rather than amount of work performed is inconsistent with piece rate employment
  • An employer alleging abscondment must demonstrate effort to trace the employee and give him an opportunity to explain his absence
  • Accordance of a fair hearing under section 41 of the Employment Act is mandatory and not a matter of choice

Court orders

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  1. 1.A declaration that the claimant's termination by the respondent was unfair and unlawful
  2. 2.One month's salary in lieu of notice being the sum of Kshs 14,204/=
  3. 3.Compensatory damages in the sum of Kshs 71,020/= equivalent to 5 months gross salary
  4. 4.Total award of Kshs 85,224/=
  5. 5.Interest on the amount at court rates from the date of judgment until payment in full
  6. 6.The claimant shall have the costs of the suit

Authorities

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Legislation

  • Employment Actsection 37
  • Employment Actsection 2
  • Employment Actsection 35
  • Employment Actsections 43, 45 and 41
  • Employment Actsection 43(1)
  • Employment Actsection 45(2)
  • Employment Actsection 45(2)(c)
  • Employment Actsection 41(1)
  • Employment Actsection 41(2)
  • Employment Actsection 44(3) or (4)
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B

Cases cited (7)

  • Abigael Jepkosgei Yator & another vs China Hanan International Co. Ltd
    (2018) eKLR
  • Joash Ogara Mainga & Christopher Munyoki Munnene vs Dhl Exel Supply Chain (K) Limited
    (2021) eKLR
  • Kenneth Kamau Kaigua vs Giloil Company Limited
    ELRC (Nairobi) Cause No 225 of 2016
  • Amos Manoa Erastus vs BOC Kenya Limited
    ELRC (Nairobi) No. 509 of 2014
  • Krystalline Salt Limited vs Kwekwe Mwakele & 67 others
    [2017] eKLR
  • Mary Mumbi Kariuki vs Director, Pamoja Women Development Programme
    [2015] eKLR
  • Postal Corporation of Kenya vs Andrew K. Tanui
    [2019] eKLR
Jurisdiction invoked
Article 162(2) of the Constitution establishing the Employment and Labour Relations Court (inferred from the court's jurisdiction over employment causes); no express provision cited

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, "Benjamin Kioko Mutisya v Uzuri Foods Limited [2022] KEELRC 461 (KLR)", Case Analysis (2022). Cause No 1427 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/461/eng@2022-03-18

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