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ELRCPartially AllowedCivil Suit No 1308 of 2017· [2023] KEELRC 458 (KLR)

Kenya National Private Security Workers Union v Watchdog Limited (Civil Suit 1308 of 2017) [2023] KEELRC 458 (KLR)

Employment and Labour Relations Court
23 February 2023
1,147 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 upheld a guard's redundancy as lawful but still ordered the employer to pay Kshs 90,988 in terminal benefits, notice pay, house allowance and service pay.

What this practically means

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Executive summary

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The claimant, employed as a security guard from June 5, 2006 at Kshs 6,000 monthly rising to Kshs 10,000, was declared redundant on October 1, 2013 along with 30 colleagues after the respondent lost five security contracts. He sued on July 11, 2017 seeking notice pay, house allowance, service pay, 12 months' compensation, costs and interest. A preliminary objection on limitation was decided by Abuodha J on September 28, 2018, holding that time stopped running while the dispute was under conciliation at the Ministry of Labour; despite acknowledging contrary Court of Appeal authority, this court held that unappealed ruling bound it and proceeded to the merits. On the evidence, the court found the redundancy was justified by the loss of five clients' contracts and that the respondent gave the claimant and the labour office one month's notice, calculated terminal benefits, and followed a fair procedure under section 40 of the Employment Act, 2007. The claimant declined to sign a discharge voucher disputing the amount offered, and the labour officer recommended payment of terminal benefits per the protective security order. The court awarded only the reliefs pleaded: notice pay of Kshs 10,912, house allowance of Kshs 19,641 and service pay of Kshs 60,435, totalling Kshs 90,988. The claim for 12 months' compensation was dismissed. Judgment was entered for Kshs 90,988 with interest at court rates from the date of judgment until payment in full, and the respondent was ordered to pay the claimant's costs.

Key legal issues

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01

Validity of the reason for termination by redundancy

Holding

The loss of five clients' contracts justified declaring 30 employees, including the claimant, redundant; the reason was valid.

Reasoning

Both CW1 and RW1 testified that the security company lost five contracts, and the claimant was a guard deployed to a client that terminated its contract. The court was satisfied this operational reason justified the redundancy declaration, satisfying the substantive fairness requirement.

02

Fairness of the redundancy procedure

Holding

One month's notice was given to the claimant and the labour office, terminal benefits were calculated, and the procedure met section 40 of the Employment Act.

Reasoning

The labour officer's report confirmed the respondent gave one month's notice of intended termination and calculated terminal benefits, which the claimant declined to receive because he disputed the amount. The court found the respondent complied with section 40 and the conciliation recommendations.

p. 3
03

Entitlement to terminal benefits

Holding

The claimant was awarded notice pay of Kshs 10,912, house allowance of Kshs 19,641 and service pay of Kshs 60,435, totalling Kshs 90,988.

Reasoning

The court held it was bound to grant only the reliefs pleaded in the statement of claim. It found the claimant entitled to notice pay, house allowance and service pay as claimed, noting the respondent was ready and willing to pay but the claimant had refused to sign the discharge voucher.

p. 3
04

Limitation period under section 90 of the Employment Act

Holding

A prior ruling by Abuodha J held that time stopped running during conciliation under the Ministry of Labour, so the suit filed 3 years and 10 months after the cause of action was not time barred; the court proceeded to the merits since that ruling was not appealed.

Reasoning

The cause of action arose on October 1, 2013 and the suit was filed on July 11, 2017. Abuodha J's ruling of September 28, 2018 found the limitation period was interrupted by conciliation. The court acknowledged contrary Court of Appeal authority but held its hands were tied absent an appeal against the ruling.

p. 1

Legal principles established

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  • An employer who declares redundancy must have a valid reason and follow a fair procedure in terms of section 40 of the Employment Act, 2007.
  • A court is only obliged to grant the reliefs a claimant has sought in the statement of claim.

Court orders

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  1. 1.Judgment entered in favour of the claimant against the respondent in the sum of Kshs 90,988 (notice pay Kshs 10,912, house allowance Kshs 19,641, service pay Kshs 60,435).
  2. 2.The amount to attract interest at court rates from date of judgment until payment in full.
  3. 3.The respondent to pay the costs of the suit.

Authorities

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Legislation

  • Employment Actsection 90
  • Employment Actsection 40
Jurisdiction invoked
Original employment and labour relations jurisdiction 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 Security Workers Union v Watchdog Limited (Civil Suit 1308 of 2017) [2023] KEELRC 458 (KLR)", Case Analysis (2023). Civil Suit No 1308 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/458/eng@2023-02-23

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