Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially Allowed· [2023] KEELRC 543 (KLR)

Mbuba & another v Mwangi & another (Cause E002 & E003 of 2021 (Consolidated)) [2023] KEELRC 543 (KLR)

Employment and Labour Relations Court
3 March 2023
2,606 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

#

What this practically means

#

Executive summary

#
Two claimants, employed at the respondents' hotel at Makutano (a steward from April 2019 earning Kshs 7,500 monthly and a cook from December 2018 earning Kshs 18,000 monthly), brought consolidated suits alleging that their services were terminated on August 15, 2019 without notice, hearing or valid reason. The respondents contended the claimants deserted work after discovering that investigations into theft of meat, captured on CCTV, were underway, and that they were temporary employees. The matter proceeded on written submissions and documentary evidence. The court framed four issues: desertion or dismissal; validity of the reason; fairness of procedure; and reliefs. Applying the South African decision in Seabo v Belgravaia Hotel, the court held that desertion requires an intention not to return which the employer must demonstrate; the respondents made no effort to reach the claimants and issued no show-cause notices. The alleged CCTV footage was not adduced, there was no proof of the 100kgs of meat or the alleged shortages of Kshs 24,000, and no witness saw the theft. The court found the claimants were dismissed; the reasons were not valid and fair, and the procedure violated section 41 of the Employment Act, the employer failing its burden under sections 43 and 45(2). The dismissal was declared unfair and unlawful. The court awarded each claimant notice pay, compensation scaled to service, pro-rated leave and unpaid salary (Kshs 24,014.42 for the 1st claimant; Kshs 72,692.30 for the 2nd), dismissed the claim for general damages, and awarded costs on the Lower court scale plus interest, subject to statutory deductions.

Key legal issues

#
01

Desertion or dismissal

Holding

Desertion was not proved; the claimants were found to have been dismissed on August 15, 2019.

Reasoning

The court adopted the South African authority Seabo v Belgravaia Hotel on the meaning of desertion, requiring an intention not to return which the employer must demonstrate through facts such as attempts to reach the employee and show-cause notices. The respondents admitted making no effort to contact the claimants, sent no show-cause notices, and produced no CCTV footage of the alleged theft investigation. The claimants' evidence of reporting to the Labour Office was more weighty, supporting a finding of dismissal.

p. 4
02

Validity of the reasons for dismissal

Holding

The reasons relied upon (theft of 100kgs of meat and shortages of Kshs 24,000.00) were not valid and fair.

Reasoning

No CCTV footage was adduced; no witness saw the meat being stolen and there was no proof that 100kgs of meat was in the fridge. The alleged shortages were unsupported by any auditor's report or accountant's statement, and no evidence showed the 2nd claimant received direct customer payments. These evidentiary gaps meant the employer failed to discharge its burden under sections 43 and 45(2) of the Employment Act.

p. 5
03

Fair procedure under section 41

Holding

The procedure followed was unfair and contrary to section 41 of the Employment Act.

Reasoning

The respondents did nothing to invite the claimants to a disciplinary hearing or warn them of disciplinary action for absconding, and no show-cause letters were served regarding the alleged theft and clandestine dealings with customers. Section 41 requires the employer to explain the reasons for contemplated termination and to hear and consider the employee's representations before termination or summary dismissal.

p. 5
04

Reliefs

Holding

Notice pay, compensation, pro-rated leave and unpaid salary awarded; general damages refused.

Reasoning

Having found the dismissal unfair, the court awarded one month's salary in lieu of notice to each claimant, compensation scaled to length of service (15 days' gross pay for the 1st claimant who worked 3 months; one month's salary for the 2nd claimant who worked about 8 months), pro-rated leave, and unpaid salary for July 2019 and 15 days in August 2019, as there was no evidence these amounts were paid. General damages were dismissed as lacking merit.

p. 5

Legal principles established

#
  • Desertion requires an intention not to return to work, which the employer must demonstrate by evidence such as attempts to reach the employee, duration of absence and show-cause notices.
  • An employer alleging desertion must show the steps taken to reach out to the absent employee to explain their absence; failing that, desertion is not proved.
  • The burden under sections 43 and 45(2) of the Employment Act lies on the employer to justify the reason for dismissal; unproven allegations of theft, unsupported by CCTV footage or audit reports, are not valid and fair reasons.
  • Termination without show-cause letters, invitation to a disciplinary hearing or warning violates the fair procedure required by section 41 of the Employment Act.

Court orders

#
  1. 1.Declaration that the dismissal of the claimants was unfair and unlawful within the meaning of Section 41 of the Employment Act
  2. 2.Award to each claimant of one month salary in lieu of notice (1st claimant Kshs 7,500.00; 2nd claimant Kshs 18,000.00)
  3. 3.Compensation for unfair dismissal: 15 days gross pay to the 1st claimant (Kshs 3,750.00) and one month salary to the 2nd claimant (Kshs 18,000.00)
  4. 4.Pro-rated leave awarded: Kshs 1,514.42 to the 1st claimant and Kshs 9,692.30 to the 2nd claimant
  5. 5.Unpaid salary for July 2019 and 15 days of August 2019 awarded: Kshs 11,250.00 to the 1st claimant and Kshs 27,000.00 to the 2nd claimant
  6. 6.Total awards: Kshs 24,014.42 (1st claimant) and Kshs 72,692.30 (2nd claimant)
  7. 7.Claim for general damages dismissed
  8. 8.Costs to the claimants based on the Lower court scale, plus interest at court rates from the date of judgment
  9. 9.Awards subject to statutory deductions

Authorities

#

Legislation

  • Employment ActSection 35
  • Employment ActSection 41
  • Employment ActSection 42(1)
  • Employment ActSection 43
  • Employment ActSection 44(3) and (4)
  • Employment ActSection 45 and 45(2)
  • Employment ActSection 47 and 47(5)
  • Employment and Labour Relations Court (Procedure) RulesRule 28(3)

Cases cited (5)

  • New World Stainless Steel Limited v Cosmas Mbalu Munyasya
    (2021) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2013) eKLR
  • Francis Mbugua Boro v Smartchip Dynamics Ltd
    (2017) eKLR
  • David Njoroge Muiru v Elsa Limited
    (2014) eKLR
  • Seabo v Belgravaia Hotel
    (1997) 6 BLLR 829 (CCMA)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (sections 35, 41, 43, 45, 47) - ELRC Procedure Rules referenced

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (1)

#

Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

#

Cite this brief

Caselaw, "Mbuba & another v Mwangi & another (Cause E002 & E003 of 2021 (Consolidated)) [2023] KEELRC 543 (KLR)", Case Analysis (2023). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/543/eng@2023-03-03

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