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ELRCPartially AllowedNot stated in judgment (appeal from Mombasa CMELRC No 492 of 2018)· [2023] KEELRC 811 (KLR)

Maingi v Milcon’s Limited (Appeal E043 of 2022) [2023] KEELRC 811 (KLR)

Employment and Labour Relations Court
28 March 2023
1,996 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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A driver paid fortnightly for 22 months was not a casual worker, so his employer owed him underpayments, notice pay, leave and a certificate of service.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Mombasa against the judgment in CMELRC No 492 of 2018 delivered on 24 March 2022, in which the trial court dismissed the appellant driver's claim for terminal dues. The appellant, employed on 10 January 2017 as a heavy commercial driver at Ksh 600 per day paid fortnightly until termination on 27 October 2018, argued that continuous employment of 22 months converted his casual engagement into regular employment under Section 37 of the Employment Act, entitling him to underpayments, notice pay, annual leave, unpaid wages, compensation, and a certificate of service. The respondent maintained he was a casual on a needs basis, that terminal dues of Ksh 89,900 were settled through union negotiations, and that the appellant was estopped from re-litigating. Allowing the appeal, the court held that continuous work beyond a day and fortnightly payment converted the employment into one protected under Section 37, and that the trial court misapplied the burden of proof under Sections 47 and 37. Applying Rashid Mazuri Ramadhani v Doshi & Company and Krystalline Salt v Mwakele, the court awarded underpayments of Ksh 227,906, notice pay of Ksh 29,169, and leave pay of Ksh 43,753.50, all payable less the Ksh 89,900 already received and subject to statutory deductions. Termination on reduced work was held valid as an operational requirement but notice was due. A certificate of service was ordered under Section 51. The judgment of the lower court was set aside and each party ordered to bear its own costs.

Key legal issues

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01

Conversion of casual employment under Section 37 of the Employment Act

Holding

Continuous employment for 22 months with wages paid every two weeks converted the appellant's casual engagement into regular employment protected under Section 37

Reasoning

The court found no employer records of days worked or payment frequency. The facts of continuous work beyond a day and fortnightly pay triggered Section 37 conversion, entitling the appellant to minimum wage, notice and benefits. The trial court's finding that he remained a casual and failed to prove his case was erroneous.

p. 3
02

Burden of proof under Sections 47 and 37 of the Employment Act

Holding

The trial court erred in placing the burden of proving validity of termination on the employee on these facts; the legal threshold under Section 47 read with Section 37 was misapplied

Reasoning

The court re-assessed the evidence as a first appeal. Given the absence of employer records and the Section 37 conversion, the trial court's dismissal on burden-of-proof grounds was in error; the employer could not rely on casual status to avoid statutory obligations.

p. 3
03

Entitlement to notice pay, underpayments and leave

Holding

Notice pay of Ksh 29,169 based on the last minimum wage, total underpayments of Ksh 227,906, and annual leave pay of Ksh 43,753.50 awarded

Reasoning

Employment being on oral terms, the applicable wage was the minimum under the Wage Orders from January 2017 for a commercial vehicle driver. The court tabulated underpayments from January 2017 to October 2018, computed notice pay on the last wage, and leave pay on the basic wage.

p. 4
04

Termination on operational grounds

Holding

The lay-off due to reduced work was a valid operational reason under Section 40 read with Section 45(5), but notice should have issued

Reasoning

The respondent's evidence of reduced work was not contested. The court held that an employer may terminate for operational requirements for good cause, subject to notice, which was awarded. Compensation for unfair termination beyond notice pay was not granted.

p. 4
05

Certificate of Service

Holding

A certificate of service shall issue pursuant to Section 51 of the Employment Act

Reasoning

The court found the trial court erred in not making a finding on the certificate of service. Section 51 obliges an employer to issue a certificate at the end of employment, and this was made a final order.

p. 4

Legal principles established

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  • Payment of wages fortnightly instead of at the end of each day converts casual employment to employment protected under Section 37 of the Employment Act
  • An employee converted under Section 37 is entitled to minimum wage, notice before termination and attendant benefits

Court orders

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  1. 1.The appeal is allowed and the judgment of the lower court set aside
  2. 2.Underpayment awarded at Ksh 227,906
  3. 3.Notice pay Ksh 29,169
  4. 4.Leave pay Ksh 43,753.50
  5. 5.The above dues shall be paid less Ksh 89,900 received by the appellant
  6. 6.The dues shall be subject to statutory deductions
  7. 7.A Certificate of Service shall issue
  8. 8.Each party shall bear own costs

Authorities

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Legislation

  • Employment Act, 2007Section 37 (including s.37(5))
  • Employment Act, 2007Section 47 (including s.47(5))
  • Employment Act, 2007Section 28
  • Employment Act, 2007Section 35
  • Employment Act, 2007Section 40
  • Employment Act, 2007Section 45(5)
  • Employment Act, 2007Section 51
  • Wage OrdersMinimum wage for driver of a commercial vehicle, 2017

Cases cited (6)

  • Jackson Muiruri Wathigo t/a Murtown Supermarket v Lilian Mutune
    [2021] eKLR
  • Josephine M Ndungu & Others v Plan International Inc.
    [2019] eKLR
  • Anthony Njenga Kuria v Bata Shoe Co. (K) Ltd
    [2017] eKLR
  • Idd Salim Mwadele & 19 others v Kwale International Sugar Company Limited
    Civil Appeal No 13 of 2018
  • Rashid Mazuri Ramadhani & 10 others v Doshi & Company (Hardware) Limited & another
    Civil Appeal No 43 of 2017; [2018] eKLR
  • Krystalline Salt Limited v Kwekwe Mwakele & 67 others
    [2017] eKLR
On appeal from
Magistrates' Court (CMELRC Mombasa)
CMELRC No 492 of 2018
Jurisdiction invoked
First appeal to the Employment and Labour Relations Court against judgment in CMELRC No 492 of 2018

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, "Maingi v Milcon’s Limited (Appeal E043 of 2022) [2023] KEELRC 811 (KLR)", Case Analysis (2023). Not stated in judgment (appeal from Mombasa CMELRC No 492 of 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/811/eng@2023-03-28

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