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ELRCPartially AllowedELRC Claim dated May 10, 2017· [2023] KEELRC 624 (KLR)

Joseph v Menengai Oil Refineries Ltd (Cause 225 of 2017) [2023] KEELRC 624 (KLR)

Employment and Labour Relations Court
6 March 2023
2,194 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that firing an employee for desertion without any evidence of trying to contact them or holding a hearing is unfair termination.

What this practically means

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Executive summary

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The Claimant sued for compensation following termination of his employment by a phone call from his supervisor on February 17, 2017, claiming one month's notice pay, unpaid overtime of Kshs 558,276.90, leave pay for 3 years 6 months, compensation under Section 49(1)(c) of the Employment Act, a certificate of service and costs. He testified he was employed in July 2013 as a fitter/welder at Kshs 1,500 per day, worked overtime that was unpaid, and was denied leave throughout his service. The Respondent admitted employment but claimed the Claimant deserted work in August 2017 after money went missing, and that terminal dues including pro-rated leave pay were computed at the labour office and paid, with a discharge agreement signed. The court found that the Respondent admitted terminating the Claimant after he disappeared for one month but produced no evidence of any effort to trace him - no email, letter or text message - and no disciplinary hearing was held. The alleged discharge agreement was not produced in evidence. The termination was therefore unfair and unjustified under Section 45(2) of the Employment Act. The court awarded one month's notice pay (Kshs 36,000), leave pay for one year only (Kshs 36,000), and compensation of eight months' salary (Kshs 288,000), totaling Kshs 360,000 less statutory deductions, plus a certificate of service. The overtime claim and leave beyond one year were not awarded. The Respondent was ordered to pay costs with interest at court rates from the date of judgment. Judgment delivered on March 6, 2023 by Hon. Lady Justice Hellen Wasilwa.

Key legal issues

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01

Unfair termination for desertion without due process

Holding

The termination was unfair and unjustified; the Respondent failed to prove a valid reason or follow fair procedure

Reasoning

RW1 admitted employing the Claimant at Kshs 1,500 per day and admitted terminating his services after he disappeared from work for one month. The Respondent produced no email, letter or text message attempting to reach the Claimant or requiring him to explain the alleged absence, and the Claimant was not subjected to any disciplinary hearing. Absent proof of efforts to contact the employee or a hearing, the termination failed the requirements of Sections 41 and 45 of the Employment Act.

p. 4
02

Alleged discharge agreement at the labour office

Holding

The alleged discharge agreement was not proved

Reasoning

The Respondent's witness admitted there was a meeting at the labour office but had no evidence of it. The Claimant denied signing any discharge agreement or receiving the cheque. Since no discharge form was tendered in evidence, the Respondent failed to discharge the burden of proving that it had been released from liability for the employment relationship.

p. 4
03

Remedies for unfair termination

Holding

Notice pay, one year's leave pay and eight months' compensation were awarded; overtime and leave beyond one year were refused

Reasoning

The court found for the Claimant in terms of Section 49 of the Employment Act, awarding one month's notice pay and compensation of eight months' salary, while limiting leave pay to one year and holding the remaining years not payable. The overtime claim was not awarded. The Respondent was ordered to issue a certificate of service and pay costs plus interest from the date of judgment.

p. 5

Legal principles established

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  • A termination of employment is unfair where the employer fails to prove a valid and fair reason and fair procedure under Section 45(2) of the Employment Act
  • An employer alleging desertion must demonstrate efforts made to reach the employee and put them on notice that termination on the ground of desertion is being considered
  • An employer asserting a discharge agreement must produce the discharge form in evidence

Court orders

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  1. 1.One month's salary in lieu of notice of Kshs 36,000/= as prayed
  2. 2.Leave pay for 1 year of Kshs 36,000/=; the rest of the years not payable
  3. 3.Compensation equivalent to 8 months' salary of Kshs 288,000/= (8 x 36,000/=)
  4. 4.Total award of Kshs 360,000/= less statutory deductions
  5. 5.Issuance of a certificate of service
  6. 6.Respondent to pay costs of the suit plus interest at court rates with effect from the date of judgment

Authorities

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Legislation

  • Employment Act, 2007Section 37
  • Employment Act, 2007Section 28(1)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 49(1)(c)

Cases cited (8)

  • Ronald Nyambu Dandi V Tornado Carries Limited
    [2019] eKLR
  • Evans Ochieng Oluoch v Njimia Pharmaceuticals Limited
    [2016] eKLR
  • Judith Atieno Owuor V Sameer Agricultural and Livestock Limited
    [2020] eKLR
  • Felistas Acheha Ikatwa v Charles Peter Otieno
    (2018) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2013) eKLR
  • David Gichana Omuya v Mombasa Millers Limited
    [2014] eKLR
  • Kenfreight (EA) Limited V Benson K Nguti
    [2016] eKLR
  • Elizabeth Wakanyi Kibe V Telkom Kenya Limited
    [2014] eKLR
Jurisdiction invoked
First-instance employment and labour relations claim 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, "Joseph v Menengai Oil Refineries Ltd (Cause 225 of 2017) [2023] KEELRC 624 (KLR)", Case Analysis (2023). ELRC Claim dated May 10, 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/624/eng@2023-03-06

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