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ELRCPartially AllowedNot stated in the judgment (Employment and Labour Relations Court cause, memorandum of claim dated 12th June 2020)· [2022] KEELRC 1566 (KLR)

Kasera & 10 others v Bidco Africa Limited (Cause 2147 of 2016) [2022] KEELRC 1566 (KLR)

Employment and Labour Relations Court
4 August 2022
4,881 words in judgment
View original judgmentRead on Kenya Law Watch case
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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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Eleven former workers of the Respondent claimed they were employed from as early as 1996 in various capacities until 12th March 2015, when their services were terminated without notice or reason, allegedly as a redundancy without compliance with section 40 of the Employment Act. They sought terminal benefits totalling Kshs 43,750,672, certificates of service, costs and interest. The Respondent denied the claim, asserting the Claimants were casual labourers paid weekly, who failed to turn up for selection after their shifts ended, and that wages were inclusive of house allowance, overtime was paid, and statutory deductions were made. The court framed four issues: employment status, whether the Claimants deserted or were locked out, entitlement to CBA benefits, and reliefs. Relying on NSSF statements and pay slips showing years of continuous contributions and deductions, the court found the Claimants were regular employees under section 37 of the Employment Act. The desertion defence was rejected as unbelievable and unsupported by any effort to reach the employees, the court concluding the Respondent locked them out and the termination was unlawful, unfair and unprocedural. The Claimants were held to be Union members entitled to CBA protection. The court awarded each Claimant one month's notice pay, house allowance at 15% of salary for the duration of service, and compensatory damages scaled between 3 and 11 months' gross salary, but disallowed accrued leave, overtime, service gratuity and baggage allowance for lack of specific proof. Costs and interest at court rates from judgment were awarded to the Claimants, with certificates of service to issue within 14 days.

Key legal issues

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01

Status of the Claimants' employment

Holding

The Claimants were regular employees, not casual labourers, by operation of section 37 of the Employment Act

Reasoning

NSSF statements and pay slips showed continuous remittances over years, with NHIF, NSSF and PAYE deductions inconsistent with casual engagement. The court held this proved a long-lasting relationship and that section 37 deemed the contracts to be monthly contracts. Labels such as 'casual' could not displace the substance of continuous employment for years.

p. 6
02

Termination versus desertion

Holding

The Claimants did not desert; the Respondent locked them out and the termination was unlawful and unfair

Reasoning

The Respondent's account that all long-serving employees voluntarily failed to report for redeployment was found unbelievable. No effort was made to reach out as required where desertion is alleged, and the Respondent's contradictory position - telling the Union the Claimants were not employees while pleading non-appearance for work - undermined its case.

p. 7
03

Entitlement to CBA benefits

Holding

The Claimants were members of the Kenya Chemical and Allied Workers Union entitled to rely on the CBA

Reasoning

Union subscription receipts and the Union's letter of 26th March 2015 affirming membership satisfied the court that the Claimants were Union members, notwithstanding the Respondent's reliance on the East Africa Portland Cement case on non-payment of dues.

p. 7
04

Reliefs payable

Holding

Notice pay, house allowance and compensatory damages awarded; leave, overtime, service gratuity and baggage allowance disallowed

Reasoning

Having found unlawful and unfair termination, the court awarded notice pay and compensatory damages scaled to each Claimant's length of service (3 to 11 months). House allowance was awarded as the Respondent failed to demonstrate payment. Heads of special damages not specifically proved were disallowed despite the finding of unfair termination.

p. 7

Legal principles established

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  • Continuous employment beyond the statutory period converts casual employment into a monthly contract under section 37 of the Employment Act irrespective of the label used
  • An employer alleging desertion must demonstrate efforts to reach the employee and put them on notice before termination

Court orders

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  1. 1.Judgment entered for the Claimants whose termination was found unlawful, unfair and unprocedural
  2. 2.Payment to each Claimant of one month's salary in lieu of notice of Kshs 26,340
  3. 3.Payment to each Claimant of unpaid house allowance at 15% of salary for the duration of service in sums particularised per Claimant
  4. 4.Payment of compensatory damages for wrongful and unlawful dismissal of varying months' gross salary per Claimant (from 3 to 11 months), totalling the sums stated per Claimant (aggregate approximately Kshs 7,363,650)
  5. 5.Dismissal of claims for accrued leave, overtime, service gratuity and baggage/luggage allowance for lack of specific proof
  6. 6.Costs awarded to the Claimants
  7. 7.Interest from the date of judgment until payment in full
  8. 8.Each Claimant to be issued a certificate of service within 14 days
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act and the Employment Act, 2007 (no specific constitutional article invoked as basis of jurisdiction)

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, "Kasera & 10 others v Bidco Africa Limited (Cause 2147 of 2016) [2022] KEELRC 1566 (KLR)", Case Analysis (2022). Not stated in the judgment (Employment and Labour Relations Court cause, memorandum of claim dated 12th June 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1566/eng@2022-08-04

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