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ELRCPartially AllowedMemorandum of claim dated May 23, 2016· [2022] KEELRC 1449 (KLR)

Gacheru v Kenyatta University (Cause 971 of 2016) [2022] KEELRC 1449 (KLR)

Employment and Labour Relations Court
27 June 2022
1,727 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that paying a 'casual' worker monthly makes them a permanent employee entitled to notice and fair dismissal protections.

What this practically means

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Executive summary

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The claimant sued the respondent for unfair and unlawful constructive dismissal and terminal dues, averring she was employed as a General Labourer and rose to a fixer, earning a monthly salary of Kshs 24,900/-. She alleged that in August 2015 she was sent home to await recall during a stock-taking exercise and was never recalled, without notice, show-cause or hearing. The respondent denied a continuing employment relationship, contending she was a casual labourer engaged on availability of work, and that monthly payment was purely logistical so section 37(1) of the Employment Act did not oblige it to deem her a regular employee; it further argued she triggered her own termination by failing to re-apply at the expiry of a three-month engagement. The court found, on the concession that she was paid monthly, that her contract had been altered to a term (monthly) contract, and that the respondent's logistical-explanation argument flew in the face of sections 37 and 35(1)(c) of the Employment Act. She was therefore entitled to notice before termination. Judgment was entered for the claimant for one month's salary in lieu of notice (Kshs 25,800/-), unpaid salary for 11 days in August 2015 (Kshs 9,460/-), leave pay for 2015 (Kshs 25,800/-) and compensation of one month's salary for unfair dismissal, with costs of the suit, all sums subject to statutory deductions.

Key legal issues

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01

Conversion of casual employment under section 37(1) of the Employment Act

Holding

Monthly payment converted the claimant's contract to a term (monthly) contract entitling her to notice and statutory safeguards

Reasoning

It was common ground that the claimant was paid at the end of the month. The respondent argued the monthly payments were purely logistical, but the court held that this flew in the face of sections 37 and 35(1)(c) of the Employment Act. The contract having been converted to a term contract, the claimant was entitled to notice before termination and attendant protections.

p. 3
02

Entitlements on termination of the converted contract

Holding

The claimant was entitled to notice pay, unpaid salary for 11 days in August 2015, leave pay for 2015 and compensation for unfair dismissal

Reasoning

Having found a term contract, the court held the claimant was entitled to notice at termination, plus unpaid salary for the 11 days worked in August 2015, payment in lieu of untaken leave for the year 2015, and compensatory damages for the wrongful, unlawful and unfair dismissal, quantified at one month's salary.

p. 3

Legal principles established

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  • Where a casual employee is paid at the end of the month, the contract is altered to a monthly contract attracting notice and statutory safeguards

Court orders

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  1. 1.Judgment for the claimant for one month's salary in lieu of notice – Kshs 25,800/-
  2. 2.Unpaid salary for 11 days worked in August 2015 – Kshs 9,460/-
  3. 3.Payment in lieu of untaken/unpaid leave for the year 2015 – Kshs 25,800/-
  4. 4.Compensation for the wrongful, unlawful and unfair dismissal amounting to one month's salary – Kshs 25,800/-
  5. 5.Costs of the suit to the claimant
  6. 6.All the sums in (i), (ii), (iii) and (iv) to be subjected to statutory deductions

Authorities

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Legislation

  • Employment Actsection 2
  • Employment Actsection 18(5)
  • Employment Actsection 20
  • Employment Actsection 35(1)(a)
  • Employment Actsection 35(1)(c)
  • Employment Actsection 37(1)
  • Employment Actsections 41, 43 and 45
  • Constitution of Kenyaarticles 41 and 47
  • Employment and Labour Relations Court Act, 2011section 20

Cases cited (5)

  • Rashid Odhiambo Allogoh & 245 Others v Haco Industries Limited
    [2015] eKLR
  • Josphat Njuguna v High Rise Self Group
    [2014] eKLR
  • Nicholas Muturi Okemwa & 8 Others v Judicial Service Commission
    [2015] eKLR
  • Oluoch v Charagu
    [2003] 2 EA 649
  • Shadrack Kahungani Mukwana v Wines of the World Limited
    [2014] eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction; sections 35, 37, 41, 43 and 45 of the Employment Act and articles 41 and 47 of the Constitution invoked

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, "Gacheru v Kenyatta University (Cause 971 of 2016) [2022] KEELRC 1449 (KLR)", Case Analysis (2022). Memorandum of claim dated May 23, 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1449/eng@2022-06-27

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