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ELRCPartially AllowedNot stated in the judgment as provided· [2023] KEELRC 1200 (KLR)

Haji v Syed Hassan Zaidi t/a Imamia Electrical & Hardware (Employment and Labour Relations Appeal E022 of 2022) [2023] KEELRC 1200 (KLR)

Employment and Labour Relations Court
4 May 2023
1,811 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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Even when an employee allegedly abandons their job, a Kenyan employer must still follow fair legal procedures before treating them as dismissed.

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 of the trial magistrate in Mombasa CMELRC No 729 of 2019. The appellant, a driver employed from July 8, 2016 on a wage rising from Kshs 15,000 to Kshs 18,000, claimed notice pay, leave pay, service pay, underpayments and compensation for unfair termination after his employment ended on November 26, 2018, allegedly upon being found with stolen goods. The respondent contended the appellant absconded duty and left employment voluntarily. The trial magistrate found the appellant had absconded and ordered him to pay the respondent in lieu of notice, awarding service and leave pay. On appeal, the court reiterated that an employer alleging desertion must still observe due process under Section 41(2) of the Employment Act and, where the employee cannot be traced, demonstrate tracing efforts and report to the Labour Officer under Section 18(4) and (5)(b). Finding no notice to resume duty, no letter to the last known address and no report to the Labour Officer, the court held the abandonment finding was in error and the termination unfair. Underpayments were partly proved against the applicable minimum wage orders. However, compensation was refused at zero due to the appellant's unchallenged culpability regarding stolen goods, and service pay was disallowed because his contract wage included NSSF dues. The appeal was allowed, the trial judgment set aside and substituted with awards of notice pay, underpayments and leave dues less Kshs 17,007 already paid, with each party bearing its own costs.

Key legal issues

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01

Whether termination following alleged absconding/desertion complied with the Employment Act

Holding

The respondent issued no notice to resume duty, no letter to last known address and no notice to the Labour Officer; the trial court's finding of abandonment was in error

Reasoning

The court held that an employer alleging desertion must still comply with Section 41(2) (hearing before termination) and, where the employee cannot be traced, demonstrate efforts to trace them and report to the Labour Officer under Section 18(4) and (5)(b). Absent such steps, the alleged abandonment lacked justification and termination was unfair.

p. 3
02

Whether the appellant was underpaid

Holding

Partly proved; underpayment of Kshs 1,319.50 per month for six months from May 1, 2018, totaling Kshs 7,914

Reasoning

Applying the Regulation of Wages (General) (Amendment) Order, 2017, the driver's minimum wage from May 1, 2017 was Kshs 17,447.15, so his wage of Kshs 18,000 was not underpaid for that period. From May 1, 2018 the minimum wage rose to Kshs 19,319.50, producing an underpayment until October 30, 2018.

p. 4
03

Whether compensation for unfair termination was due

Holding

No compensation awarded; conduct and culpability under Section 45(5)(b) taken into account

Reasoning

The appellant was alleged to have been found with stolen goods, and that evidence was not challenged in any material way. Having regard to the employee's conduct and culpability up to the date of termination, the court found compensation would not suffice and tabulated it at zero.

p. 4

Legal principles established

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  • Where an employee is alleged to have absconded duty, the employer must still ensure due process under Section 41(2) of the Employment Act before summary dismissal
  • Where the employer cannot hear the employee due to absence, the employer must demonstrate efforts to trace the employee, including notice to the Labour Officer
  • Procedural fairness is required even where gross misconduct warrants summary dismissal, save in exceptional circumstances demonstrated by the employer

Court orders

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  1. 1.Notice pay Kshs 19,319.50
  2. 2.Underpayments Kshs 7,914
  3. 3.21 leave days Kshs 12,600
  4. 4.Pro-rated leave days Kshs 5,907
  5. 5.Dues (a), (b), (c) and (d) shall be paid less Kshs 17,007 already received by the appellant
  6. 6.Each party shall bear own costs

Authorities

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Legislation

  • Employment Act, 2007Section 44
  • Employment Act, 2007Section 41(2)
  • Employment Act, 2007Section 18(4) and 18(5)(b)
  • Employment Act, 2007Section 35(5)
  • Employment Act, 2007Sections 43 and 45 (including 45(5)(b))
  • Regulation of Wages (General) (Amendment) Order, 2017Minimum wage for drivers

Cases cited (4)

  • James Okeyo v Maskant Muhas
    [2021] eKLR
  • James Ashiembi Namayi v Menengai Oil Refineries Limited
    [2016] eKLR
  • Judith Atieno Owuor v Sameer Agriculture and Livestock Limited
    [2020] eKLR
  • Cooperative Bank of Kenya Limited v Yator
    (Civil Appeal 87 of 2018) [2021] KECA 95 (KLR) (22 October 2021)
On appeal from
Mombasa Chief Magistrate's Court (CMELRC)
CMELRC No 729 of 2019
Jurisdiction invoked
First appeal against the judgment of the trial magistrate in an employment claim

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Haji v Syed Hassan Zaidi t/a Imamia Electrical & Hardware (Employment and Labour Relations Appeal E022 of 2022) [2023] KEELRC 1200 (KLR)", Case Analysis (2023). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1200/eng@2023-05-04

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