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ELRCPartially AllowedMachakos ELRC Appeal from Mavoko MCELRC No. 26 of 2020· [2023] KEELRC 1921 (KLR)

Sava Builders Limited v Isaka (Appeal E021 of 2022) [2023] KEELRC 1921 (KLR)

Employment and Labour Relations Court
28 July 2023
2,265 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court threw out a worker's unfair termination award after finding he had absconded, but made the employer share costs for keeping poor records.

What this practically means

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Executive summary

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The respondent had sued the appellant (his employer) at Mavoko claiming unfair termination, and the learned Principal Magistrate entered judgment for him: a declaration that termination was unfair and unlawful, plus one month's salary in lieu of notice (Kshs 30,000), leave earned (Kshs 63,000), compensation (Kshs 300,000) and NSSF refund (Kshs 7,000), totalling Kshs 400,000. The employer appealed, contending the engagement was casual and day-to-day, that there was no conversion into a term contract under section 37 of the Employment Act, and that the respondent absconded rather than being terminated. On a first appeal, Ongaya PJ re-evaluated the evidence. The court found material contradictions in the respondent's pleaded case and testimony: he pleaded termination on 07.12.2019 yet testified his last working day was 16.12.2019, and he failed to exhibit the alleged initial 7-day sick-off chit while the appellant exhibited a sick-off sheet showing 3 days' sick off. The court held a party is bound by pleadings, found no termination occurred, and held the respondent had absconded. The awards of compensation and notice pay were set aside; the NSSF refund failed due to unexplained breaks in service; the leave claim was an afterthought; and the underpayment claim lacked pleaded particulars and would be speculative. The court noted the appellant's failure to maintain complete employment records, and in conclusion set aside the trial judgment and decree, substituted dismissal of the respondent's suit, allowed the appeal, and ordered each party to bear their own costs in both the lower court and the appeal. Judgment delivered at Machakos on 28 July 2023.

Key legal issues

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01

Whether the respondent was terminated at all

Holding

No termination took place; the respondent absconded duty, so unfair termination could not arise

Reasoning

The respondent pleaded termination on 07.12.2019 but testified his last day was 16.12.2019, contradicting the exhibited sick-off sheet showing 3 days' sick off. The court found the account incoherent and accepted the appellant's account of absconding. The trial court erred in finding unfair termination without establishing that termination occurred.

p. 4
02

Whether the trial court's awards should stand

Holding

The awards of compensation, notice pay, NSSF refund and leave pay were all unjustified and set aside

Reasoning

Since no unfair termination occurred, compensation and notice pay fall away. The NSSF refund failed because breaks in service between February 2018 and August 2019 were unexplained, and leave pay was equally unjustified. The underpayment claim lacked pleaded particulars and would be speculative.

p. 4
03

Consequences of failure to maintain employment records

Holding

The appellant's failure to maintain complete records contributed to the dispute, reflected in the costs order

Reasoning

Although the appeal succeeded, the court noted the appellant failed to maintain and exhibit complete records which would have averted the dispute, and this informed the decision that each party bear its own costs in both courts.

p. 5

Legal principles established

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  • On a first appeal the court re-evaluates the evidence but will not disturb the trial court's conclusions unless it misdirected itself.
  • A party is bound by its pleadings; inconsistent accounts of the date of separation undermine the claim.
  • Special pecuniary claims such as underpayment must be pleaded with particulars and proved; otherwise awards would be speculative.

Court orders

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  1. 1.The trial Court's judgment and decree is set aside and substituted with an order of dismissal of the respondent's suit with orders each party to bear own costs.
  2. 2.Appeal is allowed but each party to bear own costs of the suit.

Authorities

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Legislation

  • Employment Actsection 37
  • Employment Actsection 35
On appeal from
Magistrates' Court at Mavoko (MCELRC No. 26 of 2020)
MCELRC No. 26 of 2020
Jurisdiction invoked
First appeal to the Employment and Labour Relations Court

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, "Sava Builders Limited v Isaka (Appeal E021 of 2022) [2023] KEELRC 1921 (KLR)", Case Analysis (2023). Machakos ELRC Appeal from Mavoko MCELRC No. 26 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1921/eng@2023-07-28

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