Rashid & 9 others v Endmor Steeel Millers Ltd (Employment and Labour Relations Appeal E011 of 2021) [2023] KEELRC 2603 (KLR)
The bottom line
#Kenya's Employment Court ruled that a show cause letter is not a termination, but employees still won unpaid leave and service certificates.
What this practically means
#Executive summary
#Key legal issues
#Whether the Appellants were constructively dismissed
The Appellants did not prove constructive dismissal; the show cause letters of 9th October 2018 were not terminations and the trial court was right to so hold.
Applying the contractual and reasonableness tests from Coca Cola v Lugaga, the court found the show cause letters invited a response within 48 hours and did not terminate employment. The trial court's finding was upheld.
Whether the Appellants were entitled to terminal dues (notice, house allowance, 12 months' compensation)
These heads failed because they were premised on unfair termination which was not proved; house allowance was included in the daily wages per the Statutory Wages Order.
Since no unfair termination was established, notice pay and 12 months' compensation could not issue. Section 31(1) housing obligations were met because the gazetted wages order showed daily wages were inclusive of house allowance.
Entitlement to leave days and certificate of service
Leave for 2018 at Kshs. 9,796 awarded by analogy with a co-worker who was paid leave; each Appellant who worked more than 4 weeks entitled to a certificate of service under section 51.
The record showed the Respondent paid leave to workers, including a payee who received the same show cause letter; equity required a similar award. Section 51 mandates a certificate of service for employees who worked more than 4 weeks.
Legal principles established
#- A show cause letter is not a termination letter
- On a first appeal the court re-evaluates the evidence and draws its own conclusions, bearing in mind it did not hear the witnesses
Court orders
#- 1.Award of leave for 2018 at Kshs. 9,796 to each Appellant
- 2.Each Appellant who worked for more than 4 weeks to be issued with a certificate of service under section 51 of the Employment Act
- 3.The rest of the Appeal is dismissed
- 4.Each party to bear its own costs of the appeal and in the lower court
- On appeal from
- Magistrates' Court (Employment and Labour Relations), Mavoko
- Mavoko CMEL No. 15 of 2018
- Jurisdiction invoked
- First appellate jurisdiction over the subordinate court's judgment in Mavoko CMEL No. 15 of 2018
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Rashid & 9 others v Endmor Steeel Millers Ltd (Employment and Labour Relations Appeal E011 of 2021) [2023] KEELRC 2603 (KLR)", Case Analysis (2023). Appeal from Mavoko CMEL No. 15 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2603/eng@2023-10-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.