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ELRCPartially AllowedMombasa ELRC Appeal (from Mombasa CM ELRC No. 788 of 2019)· [2023] KEELRC 1260 (KLR)

Windell v Dzuya (Appeal E066 of 2022) [2023] KEELRC 1260 (KLR)

Employment and Labour Relations Court
18 May 2023
4,344 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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Kenya's ELRC ruled that employers without written contracts must accept the worker's version of employment terms and pay full statutory dues.

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, decided by M. Mbarũ, J, against the magistrate's judgment of August 24, 2022 in Mombasa CM ELRC No. 788 of 2019. The respondent had claimed against the appellant employer (his former employer, a missionary) for underpayment, unpaid statutory dues, service pay and damages arising from employment as a caretaker from December 1, 2002 until a contested resignation in July 2019. The trial court awarded Ksh. 605,061 for underpayment (capped at three years) and Ksh. 147,861.63 in service pay. The appellant challenged the underpayment assessment and formula; the respondent cross-appealed on involuntary resignation, the three-year capping of underpayment, and costs. The court reappraised the evidence as a first appellate court. It held that, absent a written contract as required by Section 10 of the Employment Act, the respondent was a general worker whose wages fell under the Wage Orders, not a caretaker, gardener or watchman in separate concurrent positions. Because employment was continuous, terminal dues were assessable for the entire period of employment and not defeated by Section 90 limitation. Computing underpayments year by year against the minimum wage, the court found Ksh. 166,957.60 due, and awarded service pay of Ksh. 101,796.75 at 15 days' pay per full year worked based on the last wage, the employer having failed to remit NSSF and NHIF. The cross-appeal failed: the resignation was found voluntary, with no coercion, and the costs discretion was not shown to have been exercised wrongly. The appeal partially succeeded; the trial judgment was reviewed, dues to be paid less statutory deductions and less Ksh. 85,000 already received, with each party to meet own costs.

Key legal issues

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01

Position held by the respondent and the applicable wage

Holding

The respondent was a general employee, not a caretaker, gardener or watchman in separate concurrent positions; wages assessed under Wage Orders for a general worker.

Reasoning

There was no written contract, a mandatory employer duty under Section 10 of the Employment Act. Duties were general and not tied to any skill or trade. The trial court's finding that the respondent could not hold multiple positions at once could not be faulted. The respondent remained a general worker protected by Section 37, and any enhanced roles should have been in writing under Sections 10 and 13.

p. 5
02

Limitation and the period for assessing underpayments

Holding

Underpayments are due for the entire continuous period of employment (December 1, 2002 to July 16, 2019); Section 90 limitation did not bar the claim.

Reasoning

Employment was continuous from 2002 to 2019 and, with the passage of the Employment Act, became protected under Section 37 with entitlement to all terminal dues under Section 18(4). Having filed in good time, the respondent's terminal dues had to be assessed for the whole period. The court then computed year-by-year underpayments against minimum wage orders, totalling Ksh. 166,957.60, correcting the trial court's three-year capping of Ksh. 605,061.

p. 5
03

Service pay

Holding

Service pay of Ksh. 101,796.75 awarded at 15 days' pay for every full year worked, based on the last wage, because statutory dues (NSSF/NHIF) were not paid.

Reasoning

Refusal to sign NSSF and NHIF forms did not excuse the employer; statutory payment is not subject to mutual consent. Under Sections 35(5) and (6), failure to pay statutory dues attracts service pay at 15 days' wage per full year worked. Using the last wage and 15 full years of service, the court computed Ksh. 6,786.45 x 15 = Ksh. 101,796.75.

p. 7
04

Whether the resignation was voluntary (cross-appeal)

Holding

The resignation was voluntary; no coercion found, so no compensation for unfair termination.

Reasoning

Michelle Windell's unchallenged evidence was that she wrote the resignation letter as part of a terminal dues package and allowed the respondent time to read it before returning it signed on July 22, 2019. The respondent's conduct in vacating his accommodation and taking the letter away to read was inconsistent with coercion; he made no contemporaneous complaint until filing suit. The trial court's finding of voluntary termination was sound.

p. 8
05

Costs (cross-appeal)

Holding

Costs in ELRC proceedings are discretionary under Section 12(4) of the ELRC Act; the trial court's order that each party bear own costs could not be disturbed absent a showing of judicial failure in exercising discretion.

Reasoning

The respondent submitted no matter of wrong application of the trial court's discretion on costs. The appellate court therefore left the trial court's costs finding intact, ordering each party to meet own costs. Payments already made (Ksh. 85,000 in severance and half month's salary) were also directed to be offset against the dues.

p. 8

Legal principles established

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  • Failure to issue a written contract of employment, a mandatory duty of the employer under Section 10 of the Employment Act, leaves the court bound to believe the employee's word as to the terms of employment.
  • An employee undertaking general duties without a written contract is a general worker whose wages are assessed under the applicable Wage Orders, and cannot claim multiple concurrent positions.
  • Where employment is continuous, assessment of terminal dues must cover the entire period of employment and is not defeated by the limitation in Section 90 of the Employment Act.
  • Non-payment of statutory dues (NSSF/NHIF) is not subject to mutual consent, and an employer who fails to pay such dues is sanctioned by payment of service pay at 15 days' wage per full year worked.

Court orders

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  1. 1.The respondent was a general employee of the appellant
  2. 2.Employment was from December 1, 2002 to July 16, 2019, a period of 15 full years
  3. 3.Underpayments are due for the entire period of employment all at Ksh. 166,957.60
  4. 4.Service pay is awarded at Ksh. 101,796.75
  5. 5.These dues shall be paid less statutory deductions in terms of Section 49(2) of the Employment Act, 2007
  6. 6.The dues above shall be paid less Ksh. 85,000 already received by the respondent
  7. 7.Each party shall meet own costs

Authorities

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Legislation

  • Employment Act, 2007Section 10
  • Employment Act, 2007Section 13
  • Employment Act, 2007Section 18(4)
  • Employment Act, 2007Section 27, 28 and 31
  • Employment Act, 2007Section 35(5) and (6)
  • Employment Act, 2007Section 37
  • Employment Act, 2007Section 49(2)
  • Employment Act, 2007Section 90
  • Employment and Labour Relations Court Act, 2011Section 12(4)
  • Regulation of Wages (General) OrdersLegal Notice No. 48 (minimum wage orders, various years)

Cases cited (6)

  • Teresia Wanjiku Ngugi v Kiambu Institute of Science and Technology
    [2021] eKLR
  • George Ochieng Okey v For You Clothing Limited
    [2021] eKLR
  • Kathra Hussein Noor & Another v Kaderdina Hajee Essak Limited
    [2016] eKLR
  • Martin Ireri Ndwiga v Olerai Management Company
    [2017] eKLR
  • Grace Waithira Hungi v Riley Services Limited
    [2016] eKLR
  • National Land Commission v Munubi & 4 others
    (Civil Appeal 248 of 2020) [2022] KECA 391 (KLR)
On appeal from
Chief Magistrate's Court, Mombasa (ELRC)
CM ELRC No. 788 of 2019
Jurisdiction invoked
First appellate jurisdiction of the Employment and Labour Relations Court over appeals from the magistrates' court (Employment and Labour Relations Court Act)

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, "Windell v Dzuya (Appeal E066 of 2022) [2023] KEELRC 1260 (KLR)", Case Analysis (2023). Mombasa ELRC Appeal (from Mombasa CM ELRC No. 788 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1260/eng@2023-05-18

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