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ELRCDismissedAppeal from Butali CMELRC No. E013 of 2021· [2023] KEELRC 1353 (KLR)

Cypriano Agencies v Katamu (Employment and Labour Relations Appeal E045 of 2022) [2023] KEELRC 1353 (KLR)

Employment and Labour Relations Court
30 May 2023
4,756 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court confirmed that long-serving 'casual' workers automatically gain full employment protection, and employers who skip disciplinary hearings must pay for unfair termination.

What this practically means

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Executive summary

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This was a first appeal to the Employment and Labour Relations Court at Kakamega against the judgment of Hon. Njalale (SRM) in Butali CMELRC No. E013 of 2021, delivered on 6th October 2022, which had awarded the claimant one month's pay in lieu of notice, 12 months' compensation for unfair termination and house allowance totalling Kshs. 317,204.75, plus a certificate of service, costs and interest. The appellant employer argued the claimant was a casual labourer on consecutive fixed-term contracts who never worked continuously for the 13 months required by section 45(3) of the Employment Act, and that the dismissal for absconding was lawful, the notices having been sent to his last known postal address. The respondent argued his employment had converted under section 37, that no notices of show cause or disciplinary hearing were proved served, and that the awards were justified. The court, guided by Selle v Associated Motor Boat Company, re-evaluated the evidence. It held that the claimant, engaged from July 2013 to April 2020, served continuously in excess of 30 days over more than six years, so his casual employment converted by operation of section 37(1)(a) to a monthly contract protected by section 45. On procedure, the employer could not prove service of the show cause and disciplinary notices, breaching section 41(2); even fixed-term employees are entitled to procedural fairness. The awards were all permissible under sections 31 and 49(1) and the amounts were unchallenged. The judgment of the trial magistrate was upheld in its entirety, the appeal dismissed with costs to the respondent.

Key legal issues

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01

Whether the respondent's casual employment converted to a term contract

Holding

The claimant's casual employment converted to monthly salary under section 37(1)(a) of the Employment Act and he became protected from unfair termination under section 45

Reasoning

The claimant worked continuously from July 2013 to April 2020, as admitted by the appellant's witness and corroborated by the NSSF statement and the series of renewable contracts. Although each contract described him as a casual worker on daily rates, section 37 deems the contract of a casual employee engaged beyond 24 hours and working the equivalent of a month or more to be one where wages are paid monthly. The court applied the Court of Appeal's reasoning in Nanyuki Water & Sewerage and Chemelil Sugar on conversion by operation of law.

p. 6
02

Whether the trial court applied the wrong principles in awarding damages

Holding

The termination was unfair for non-compliance with section 41 (notification and hearing); the awards under sections 31 and 49(1) of the Employment Act were justified and not disturbed

Reasoning

The employer's case was summary dismissal for absconding under section 44(4), but it could not prove service of the show cause letter or notice of disciplinary hearing. The trial court found the claimant had been told to stay away pending a medical report, and DW1 agreed he should not be at work. Section 41(2) required the employer to hear and consider representations before summary dismissal. Having converted to a permanent contract, the claimant was entitled to procedural fairness; notice pay, house allowance and 12 months' compensation fell within section 49(1).

p. 8

Legal principles established

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  • A casual employee engaged continuously for the equivalent of not less than one month, or on work not reasonably completable within three months, is by operation of section 37 of the Employment Act deemed to be employed on monthly wages and protected from unfair termination under section 45
  • Even a fixed-term contract employee is entitled to procedural fairness under section 41 of the Employment Act in the event of termination during the contract period

Court orders

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  1. 1.The judgment of Hon. Njalale in Butali CM ELRC No. E013 of 2021 delivered on 6th October 2022 is upheld in its entirety
  2. 2.The appeal is dismissed with costs to the respondent

Authorities

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Legislation

  • Employment Actsection 37(1)(a)
  • Employment Actsection 45(3)
  • Employment Actsection 44(4)
  • Employment Actsection 41(2)
  • Employment Actsection 49(1)
  • Employment Actsection 31(1)
  • Employment Actsection 35(1)(c)

Cases cited (10)

  • Selle and Another v Associated Motor Boat Company Ltd & Others
    [1968] EA 123
  • David Kahuruka Gitau & Another v Nancy Ann Wathithi Gatu & Another
    Nyeri HCCA No. 43 of 2013
  • Margaret A. Ochieng v National Water Conservation & Pipeline Corporation
    (2014) eKLR
  • Registered Trustees of the Presbyterian Church of East Africa v Ruth Gathoni Ngotho
    (2017) eKLR
  • Nanyuki Water and Sewerage Company Limited v Benson Ntiritu & 4 others
    [2018] eKLR
  • Chemelil Sugar Company v Ebrahim Ochieng Otuon & 2 Others
    [2015] eKLR
  • Kenyatta University v Esther Njeri Maina
    NRB Civil Appeal No. 261 of 2017
  • Ronald Ongori Gwako v Styroplast Limited
    (2022) eKLR
  • Ruth Nyasunguta Areimba v Conference Caterers Limited
    (2021)
  • Antony Mkala Chitavi v Malindi Water & Sewerage Company Ltd
    (2013) eKLR
On appeal from
Magistrates' Court (CMELRC), Butali
CMELRC No. E013 of 2021
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's decision in an employment claim

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, "Cypriano Agencies v Katamu (Employment and Labour Relations Appeal E045 of 2022) [2023] KEELRC 1353 (KLR)", Case Analysis (2023). Appeal from Butali CMELRC No. E013 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1353/eng@2023-05-30

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