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ELRCPartially AllowedStatement of Claim dated April 26, 2018· [2023] KEELRC 1153 (KLR)

Mwende v Interstrat Limited t/a Big Square (Employment and Labour Relations Cause 616 of 2018) [2023] KEELRC 1153 (KLR)

Employment and Labour Relations Court
23 February 2023
7,537 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan restaurant was ordered to pay a cashier over Kshs 500,000 after unfairly firing her without a hearing and paying below legal minimum wages.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Customer Care Assistant/cashier from April 23, 2014 on renewable one-year fixed term contracts, claimed unfair termination and various unpaid dues. Her employment was summarily terminated on December 11, 2017 after she was accused of making a manual entry on a receipt to defraud the Respondent. She was briefly arrested and later told to surrender her uniform; she was never granted a hearing or issued a termination letter. The Respondent filed a response but called no witness at trial. The court framed four issues: the effect of the Respondent's failure to adduce evidence, the fairness of the termination, entitlement to reliefs, and costs. It held that a response unsupported by testimony has no evidential value and that submissions cannot replace evidence. The Claimant discharged her burden under section 47(5) by making a prima facie case; the employer's burdens under sections 43 and 45(2) went undischarged, so the dismissal was both procedurally and substantively unfair. The court awarded maternity leave pay of Kshs 74,158, annual leave pay, six months' salary as compensation (Kshs 99,000), one month's salary in lieu of notice (Kshs 16,500), Kshs 5,323 for ten days worked in December 2017, and Kshs 301,782 in underpayments under section 48 of the Labour Institutions Act, holding statutory minimum wages cannot be contracted out. House allowance claims and exemplary damages were refused. A certificate of service was ordered, with interest and costs to the Claimant.

Key legal issues

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01

Effect of the Respondent's failure to call evidence

Holding

The Respondent's statement of response had no evidential value; its legal burdens under sections 43 and 45(2) were undischarged, rendering the summary dismissal unfair by operation of law

Reasoning

The Respondent entered appearance and filed a response but closed its case without calling a witness. The court held the response remains a mere statement without evidential value. Submissions by counsel cannot substitute for evidence. The employer's statutory legal burdens under sections 43 and 45(2) of the Employment Act must be discharged by evidence, and failure to do so meant the dismissal was deemed unfair by operation of law.

p. 9
02

Procedural fairness of the termination

Holding

The summary dismissal was procedurally unfair

Reasoning

The uncontroverted evidence showed the Claimant was not given an adequate chance to defend herself against accusations and no right of accompaniment under section 41. The section 41 procedure is mandatory; notification, hearing and consideration components were absent. The duty to prove procedural fairness lies on the employer, who adduced no evidence.

p. 11
03

Substantive fairness of the termination

Holding

The dismissal was substantively unfair; the alleged receipt endorsement did not justify summary dismissal

Reasoning

Section 43 requires the employer to prove the reasons for termination and section 45(2) that they are valid and fair. The Claimant's explanation of the endorsed receipt was reasonable and required but received no controversion. Without evidence demonstrating a valid and fair reason, the court concluded the dismissal was substantively unfair and declined to find justification under section 44.

p. 11
04

Maternity leave payment

Holding

Awarded Kshs 74,158

Reasoning

The Respondent expressly admitted in pleadings that the Claimant took maternity leave but asserted she was remunerated. Counsel's submissions could not contradict an express admission in pleadings. The Respondent bore the burden to prove payment by payroll or cheque evidence and adduced none, so the full amount claimed was awarded.

p. 11
05

Underpayment under the Regulation of Wages (General) Order

Holding

Awarded Kshs 301,782 under section 48 of the Labour Institutions Act

Reasoning

The Claimant, a cashier, was subject to the Wage Orders. Section 48 of the Labour Institutions Act inserts statutory minimum terms into contracts paying less. The court held minimum wages cannot be contracted out and the post-2007 regime is a countervailing force to inequality of bargaining power. It computed underpayments for June 2015 to December 2017 at Kshs 301,782.

p. 13
06

Compensation for unfair termination

Holding

Awarded 6 months' gross salary (Kshs 99,000) rather than the 12 months sought

Reasoning

The discretion under section 49(1)(c) is exercised on the circumstances of each case. Considering the breach of statutory procedure, fair hearing and natural justice, the Respondent's non-compliance on maternity and annual leave payment, and the length of service, the court concluded the Claimant was entitled to compensation capped at six months' gross salary.

p. 12

Legal principles established

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  • A respondent who files a response but calls no evidence leaves the response without evidential value, though the claimant's burden of proof remains
  • Submissions are not a substitute for evidence
  • Under section 47(5) of the Employment Act the employee must first make a prima facie case of unfair termination, whereafter the burden shifts to the employer to justify the termination
  • Minimum wages prescribed by statute cannot be contracted out; the court applies the law over contractual terms inconsistent with a wages order

Court orders

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  1. 1.Declaration that the Claimant's termination was both procedurally and substantively unlawful and unfair
  2. 2.Annual leave payment of Kshs 16,500
  3. 3.Compensation at 6 months' gross salary of Kshs 99,000
  4. 4.One month salary in lieu of notice of Kshs 16,500
  5. 5.Payment for 10 days worked in December 2017 of Kshs 5,323
  6. 6.Compensation for unpaid maternity leave of Kshs 74,158
  7. 7.Leave pay for the annual leave for 2016 of Kshs 16,500
  8. 8.Interest on sums awarded at court rates from date of judgment until full payment
  9. 9.Underpaid salary of Kshs 301,782
  10. 10.Costs of the suit to the Claimant
  11. 11.Respondent to issue certificate of service to the Claimant within 30 days

Authorities

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Legislation

  • Employment Actsections 28(1), 29(7), 35, 36, 41, 42(1), 43, 44, 45, 47(5), 49(1)(c), 51
  • Labour Institutions Actsection 48
  • Regulation of Wages (General) Orderrow 11
  • Evidence Actsection 107
  • Industrial Court (Procedure) Rules, 2010Rule 13
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticles 41, 48, 159(2)(d)
  • Civil Procedure ActSection 1B

Cases cited (14)

  • David Gichana Omuya vs Mombasa Maize Millers Ltd
    (2014) eKLR
  • Reuben Mwamboga v Bahnhof Bar & Restaurant
    Mombasa Cause No. 159 of 2013
  • Galgalo Jarso Jillo v Agricultural Finance Corporation
    [2021] eKLR
  • Muthaiga Country Club v Kudheiha Workers
    [2017] eKLR
  • Kennedy Maina Mirera vs Barclays Bank of Kenya Limited
    2018 eKLR
  • Joseph Maina Theuri vs Gitonga Kabugi & 3 others
    (2017) eKLR
  • Kenya County Government Workers' Union vs County Government of Nyeri & Another
    (2015) eKLR
  • Attorney General of Belize et al vs Belize Telecom Ltd & Another
    (2009) 1 WLR 1980
  • Trollope Colls Ltd vs North West Metropolitan Regional Hospital Board
    1973 1 WLR 601
  • Rookes vs Bernard
  • Bank of Baroda (Kenya) vs Timwood Products Ltd
    Civil Appeal No 132 of 2001 (Unreported)
  • Joseph Nkubi and County Council of Meru v Regina Thiridi
    [1998] eKLR
  • Ronald Ongori Gwako v Styroplast Limited
    [2022] eKLR
  • Globe Motors Inc & Others v TRW Electric Steering Ltd & Others
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations disputes (Employment Act; Labour Institutions Act)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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

Cite this brief

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Cite this brief

Caselaw, "Mwende v Interstrat Limited t/a Big Square (Employment and Labour Relations Cause 616 of 2018) [2023] KEELRC 1153 (KLR)", Case Analysis (2023). Statement of Claim dated April 26, 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1153/eng@2023-02-23

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