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ELRCPartially AllowedNot stated in judgment· [2023] KEELRC 720 (KLR)

Ogero & another v Rotich t/a Chemie Cleaning & General Services (Cause 102 of 2018) [2023] KEELRC 720 (KLR)

Employment and Labour Relations Court
22 March 2023
642 words in judgment
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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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In an undefended cause that proceeded to formal proof after two instances of service failed to elicit an appearance or response, two claimants sued their former employer for unfair termination of employment and breach of contract. Both claimants testified and produced documentary evidence, including National Social Security Fund provisional member statements of account, in the absence of written contracts of service. The court held that where no written contract exists, secondary documentary evidence may be used to infer an employment relationship, and found the claimants were employed from 1 June 2010 and 1 August 2012 respectively. On the unfair termination claim, the claimants testified they received termination letters dated 31 August 2017 without prior notice or reasons; the testimony was unchallenged. Applying sections 35(1)(c) and 41 of the Employment Act, which require 28 days' written notice and an opportunity to make representations before termination, the court found the terminations unfair. On remedies, the court exercised discretion given that neither claimant disclosed their salary at separation, awarding the 1st claimant (7 years' service) Kshs 40,000/- and the 2nd claimant (about 5 years' service) Kshs 25,000/-. The claims for accrued leave and underpayments were declined for want of evidential and legal foundation, the court noting section 28(4) of the Employment Act limits carried-forward leave and that no Regulation of Wages Order was produced. The court declared the terminations unfair, awarded the compensation, declined the other heads, and denied the claimants costs as a consequence of failing to file submissions within the agreed timelines. Judgment was delivered virtually, dated and signed in Kisumu on 22 March 2023.

Key legal issues

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01

Existence of employment relationship without a written contract

Holding

The employment relationship was inferred from NSSF provisional member statements of account showing employment dates of 1 June 2010 (1st claimant) and 1 August 2012 (2nd claimant).

Reasoning

No written contracts of service were produced. The court held that in the absence of a written contract, secondary documentary evidence suffices to infer an employment relationship. NSSF member statements recorded the claimants as employed by the respondent on the respective dates, and that unchallenged documentary evidence established the relationship and its commencement dates.

p. 2
02

Unfair termination

Holding

The termination of both claimants' contracts was unfair.

Reasoning

The claimants testified they received termination letters dated 31 August 2017 without prior notice or reasons. The testimony was unchallenged. Section 35(1)(c) of the Employment Act requires at least 28 days' written notice of termination and section 41 requires the employer to hear the employee before termination. Neither was done, so the termination was unfair.

p. 2
03

Quantum of compensation

Holding

Kshs 40,000/- for the 1st claimant (7 years' service) and Kshs 25,000/- for the 2nd claimant (about 5 years' service).

Reasoning

Neither claimant disclosed their salary at the point of separation, limiting the court's ability to compute statutory compensation. The court exercised discretion, considering length of service (7 years for the 1st claimant, about 5 years for the 2nd) and the absence of salary disclosure, to award modest lump-sum figures.

p. 2
04

Leave claim

Holding

Declined for lack of evidential foundation.

Reasoning

Section 28(4) of the Employment Act limits how much leave may be carried forward. The claimants did not show that leave accrued with the respondent's permission or that leave applications were made and denied. Without that foundation, the head of claim failed even after formal proof.

p. 2
05

Underpayments claim

Holding

Declined for lack of evidential or legal foundation.

Reasoning

The claimants provided no evidence or legal basis, such as the applicable Regulation of Wages Order, to support the underpayments claim. A claimant bears the burden of laying an evidential and legal foundation for each head of claim; unproven heads fail regardless of the unchallenged status of the general testimony.

p. 3

Legal principles established

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  • Where there is no written contract of service, the court may rely on secondary documentary evidence to infer an employment relationship.
  • An employer who issues neither statutory notice of termination nor an opportunity to be heard before termination effects an unfair termination.

Court orders

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  1. 1.Declared that the respondent terminated the claimants' contracts unfairly
  2. 2.Awarded the 1st Claimant compensation of Kshs 40,000/-
  3. 3.Awarded the 2nd Claimant compensation of Kshs 25,000/-
  4. 4.Declined the other heads of claim (leave and underpayments)
  5. 5.Denied the claimants costs for failing to file submissions within the agreed timelines

Authorities

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Legislation

  • Employment Act, 2007Section 35(1)(c)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 28(4)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over unfair termination of employment and breach of contract claims 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, "Ogero & another v Rotich t/a Chemie Cleaning & General Services (Cause 102 of 2018) [2023] KEELRC 720 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/720/eng@2023-03-22

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