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ELRCPartially AllowedNot stated in judgment (appeal from MC ELRC No. 319 of 2020)· [2023] KEELRC 2301 (KLR)

Sanghani v Rotich (Appeal E015 of 2023) [2023] KEELRC 2301 (KLR)

Employment and Labour Relations Court
21 September 2023
1,626 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 casual workers with continuous service get full protection, WhatsApp is not proper termination notice, and maximum compensation awards need strong justification.

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 magistrate in MC ELRC No. 319 of 2020, which had allowed a security guard's claim for unfair termination, notice pay, wage arrears, severance pay, underpayment and leave pay. The appellant employer contended the respondent was a casual labourer on a daily wage of Ksh.300 who deserted duty on 23 May 2020 and was summoned through WhatsApp. The court, re-evaluating the evidence as it must on a first appeal, held that the respondent's continuous service beyond 24 hours brought him within Section 37 of the Employment Act, conferring full statutory benefits despite the absence of written terms. On desertion, the court held that an employee cannot dismiss himself; the employer must issue notice through a channel by which receipt can be ascertained, and WhatsApp can only support, not replace, permitted communication channels. The finding of unfair termination was upheld. However, the court found the magistrate's award of the maximum 12 months' compensation unjustified given only about two years of service, and substituted two months' gross wage. Severance pay was set aside as it is only due in redundancy under Section 40. Awards for notice pay, underpayment and two years' annual leave were upheld with adjusted computation, and a certificate of service ordered under Section 51. The appeal partially succeeded, with each party bearing its own costs.

Key legal issues

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01

Employment status of the respondent

Holding

Though engaged at a daily wage, the respondent's continuous service brought him within Section 37 of the Employment Act with full statutory benefits

Reasoning

Sections 8, 9 and 10 require written terms; without such records and where the employee serves continuously beyond 24 hours on work not ending daily, Section 37 converts casual engagement into protected employment. The appellant's own witness admitted employment, and the daily-wage characterisation was a misapplication of the respondent's work status.

p. 3
02

Desertion and fairness of termination

Holding

The termination was unfair; the WhatsApp notice was not proper notice and the employer failed to discharge its burden

Reasoning

Desertion is gross misconduct warranting summary dismissal, but the employer must issue notice and allow the employee to defend himself under Section 41(2). Where desertion is alleged, the employer must prove notice was issued and received. The WhatsApp mode cannot substitute permitted communication channels, so the trial court's finding of unfair termination was sound.

p. 2
03

Quantum of compensation

Holding

The maximum 12 months' compensation was reduced to two months' gross wage for want of justification

Reasoning

Section 49 permits up to 12 months' compensation, but the maximum must be reasonable and supported by stated reasons, such as long service. The respondent served only about two years (2018 to 2020) and the magistrate gave no justification; the court on first appeal was bound to review the award and substituted two months' gross wage of Ksh.15,860.80.

p. 3

Legal principles established

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  • A casual employee who works continuously beyond 24 hours is deemed to be on indefinite terms and protected under Section 37 of the Employment Act
  • An employee who deserts does not terminate his own employment; the employer must issue notice and give the employee a hearing under Section 41(2)
  • WhatsApp may only support, not replace, permissible channels of communicating a termination notice; the employer must use a mode by which receipt can be ascertained
  • The maximum award of 12 months' compensation under Section 49 must be justified with stated reasons

Court orders

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  1. 1.A declaration that employment was terminated unfairly
  2. 2.Compensation awarded at Ksh. 15,680.80
  3. 3.Notice pay Ksh. 7,930.40
  4. 4.Underpayment Ksh. 7,853.10
  5. 5.Annual leave Ksh. 14,679
  6. 6.A certificate of service to issue in terms of Section 51 of the Employment Act, 2007
  7. 7.Each party to bear own costs

Authorities

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Legislation

  • Employment Act, 2007Section 37
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Sections 8, 9 and 10
  • Employment Act, 2007Section 10(2)
  • Employment Act, 2007Section 41(2)
  • Employment Act, 2007Section 49
  • Employment Act, 2007Section 40
  • Employment Act, 2007Section 28
  • Employment Act, 2007Section 51

Cases cited (5)

  • Rashid Mazuri Ramadhani & 10 others v Doshi & Company (Hardware) Limited & another
    [2018] eKLR
  • Ayub Kombe Ziro v Umoja Rubber Products Limited
    [2022] eKLR
  • James Okeyo v Maskant Flower Limited
    [2015] eKLR
  • Gas Kenya Limited v Odhiambo
    (Appeal E006 of 2022) [2022] KEELRC 3930 (KLR) (22 September 2022)
  • Alfred Muthomi & 2 Others v National Bank of Kenya Limited
    [2018] eKLR
On appeal from
Magistrates' Court (MC ELRC)
MC ELRC No. 319 of 2020
Jurisdiction invoked
First appeal from the subordinate court in employment and labour relations matters

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, "Sanghani v Rotich (Appeal E015 of 2023) [2023] KEELRC 2301 (KLR)", Case Analysis (2023). Not stated in judgment (appeal from MC ELRC No. 319 of 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2301/eng@2023-09-21

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