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ELRCPartially AllowedNot stated in the judgment· [2023] KEELRC 2164 (KLR)

Amukabwa v Glacier East Africa Limited (Cause 386 of 2017) [2023] KEELRC 2164 (KLR)

Employment and Labour Relations Court
21 September 2023
1,832 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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A Kenyan court awarded a dismissed cleaner full compensation because his employer never explained or justified the dismissal.

What this practically means

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Executive summary

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The Claimant, a cleaner employed by the Respondent in December 2014, sued for terminal dues after his employment ended in April 2016. He averred that after taking three days of compassionate leave following his sister's demise, he returned to find his colleagues paid but himself unpaid, and that he was never heard or issued any termination letter; his position was effectively filled by the person who had covered for him. The Respondent entered appearance but never filed a response, so the claim proceeded undefended under Rule 21 of the ELRC (Procedure) Rules, 2016. The Claimant relied on his staff identification card and a KCB bank statement showing monthly payments by the Respondent from September 2015 to March 2016 to establish the employment relationship, and on sections 41, 43, 44, 47(5), 49(1)(c), 28, 31(2) and 51 of the Employment Act to argue that the summary dismissal was substantively and procedurally unfair. Citing Pius Machafu Isindu v Lavington Security Guards Limited, Abigael Jepkosgei Yator v China Hanan International Co. Ltd and Grain Pro Kenya Inc. Limited v Andrew Waithaka Kiragu, he sought notice pay, twelve months' compensation, house allowance, leave pay, costs and a certificate of service. The court found the employment relationship established and the dismissal unfair, holding the Respondent had failed to prove reasons for termination. Judgment was entered for the Claimant for Kshs. 22,894/- as unpaid house allowance, Kshs. 8,218/- leave pay, Kshs. 10,175/- notice pay, and Kshs. 122,100/- as compensation, together with costs of the suit and a certificate of service. The claim for the salary differential against the statutory minimum wage was not recovered as it was never pleaded.

Key legal issues

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01

Whether an employment relationship was established on an undefended claim

Holding

The staff identification card bearing the Respondent's name and the KCB bank statement showing monthly salary payments from September 2015 to March 2016 prima facie established a subsisting employment relationship, unchallenged by the Respondent

Reasoning

The Claimant annexed a staff ID showing he was stationed at CFC Gikomba Branch and a bank statement showing monthly payments by the Respondent. The Respondent, despite being served, filed only a memorandum of appearance and never filed a response, so the evidence went unrebutted and the claim proceeded under Rule 21 of the ELRC (Procedure) Rules, 2016.

p. 2
02

Whether the termination was substantively and procedurally unfair

Holding

The dismissal was both substantively and procedurally unfair: the Respondent gave no notice, no reasons and no hearing, breaching sections 41, 43, 44(3) and (4) and 47(5) of the Employment Act

Reasoning

The Claimant learned of his dismissal only on discovering his position had been taken by another person. No letter of grounds or hearing was given, and no explanation was offered by the Respondent, which did not defend the claim. Under section 43, unproven reasons render termination unfair, and section 41's mandatory notification and hearing process was wholly offended.

p. 3
03

Entitlement to terminal dues including house allowance, leave pay, notice pay and compensation

Holding

The Claimant was entitled to unpaid house allowance at 15% of salary, accrued leave pay, one month's notice pay and maximum compensation of 12 months' salary given the callous manner of dismissal

Reasoning

The Respondent neither provided housing, paid house allowance nor a consolidated salary, as the cleaner's statutory minimum wage under the Regulation of Wages (General)(Amendment) Order 2015 was exclusive of housing allowance. The Claimant had never taken annual leave. Given the dismissal occurred around the demise of his sibling and in a callous manner, the maximum compensation under section 49(1)(c) was merited.

p. 4

Legal principles established

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  • Where an employer fails to respond to a claim and produce work records, the employee's unchallenged claim as to terms and conditions of employment is taken as the truth
  • Summary dismissal without notice or hearing, and without proof of reasons by the employer, is substantively and procedurally unfair under sections 41, 43, 44 and 47(5) of the Employment Act

Court orders

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  1. 1.Kshs. 22,894/- as unpaid house allowance
  2. 2.Leave pay of Kshs. 8,218/-
  3. 3.Kshs. 10,175/- as notice pay
  4. 4.Kshs. 122,100/- as compensation
  5. 5.Costs of the suit to the Claimant
  6. 6.Certificate of service

Authorities

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Legislation

  • Employment Actsection 44(1)
  • Employment Actsection 41(2) (and section 41 generally)
  • Employment Actsection 43
  • Employment Actsection 47(5)
  • Employment Actsection 44(3) and (4)
  • Employment Actsection 49(1)(c)
  • Employment Actsection 31(2)
  • Employment Actsection 28
  • Employment Actsection 51
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 21
  • Regulation of Wages (General)(Amendment) Order 2015minimum wage for a cleaner in Nairobi
  • Basic Minimum Monthly Wages 2015cleaner's wage of Kshs. 10,954.00 exclusive of house allowance

Cases cited (3)

  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • Abigael Jepkosgei Yator & another v China Hanan International Co. Ltd
    [2018] eKLR
  • Grain Pro Kenya Inc. Limited v Andrew Waithaka Kiragu
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and the Employment and Labour Relations Court (Procedure) Rules, 2016 (Rule 21)

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, "Amukabwa v Glacier East Africa Limited (Cause 386 of 2017) [2023] KEELRC 2164 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2164/eng@2023-09-21

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