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ELRCPartially AllowedCause No. 8 of 2017 (Memorandum of Claim dated 4th May 2017)· [2023] KEELRC 2868 (KLR)

Chepng’otie v Kenya Kazi Security Services (Employment and Labour Relations Cause 36 of 2017) [2023] KEELRC 2868 (KLR)

Employment and Labour Relations Court
10 November 2023
2,998 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that forcing a worker to choose between resigning or accepting a transfer not in his contract was unfair, constructive dismissal.

What this practically means

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Executive summary

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The Claimant, a security guard employed by the Respondent from 20th May 2011 and deployed in Eldoret, claimed that his employment was unfairly terminated on 31st May 2014 after he declined an immediate transfer to Naivasha, seeking Kshs 531,691.19 in terminal dues, a certificate of service, costs and interest. The Respondent denied terminating him, asserting he resigned voluntarily after losing its business with Raiply Limited, Eldoret. The Claimant testified that he was given only two options - resign or transfer - despite his sick father needing care, and that he was compelled to write a resignation letter. The Respondent's Human Resources Officer conceded the Claimant worked 6am to 6pm and could not prove overtime payment. The court framed two issues: whether the employment was terminated unlawfully or the Claimant resigned voluntarily, and entitlement to remedies. Applying Mariana Onica v Sky Aero Limited on the burden in constructive dismissal claims, the court held that the service contract provided for employment in Eldoret with no transfer clause, no transfer letter or policy existed, and giving the Claimant a choice between family and job amounted to constructive dismissal, so the resignation was involuntary and constituted unfair termination. On remedies, the court awarded one month's pay in lieu of notice (Kshs 12,549), leave pro-rata (Kshs 4,666.67), May 2014 overtime (Kshs 3,153) and six months' compensation under section 49(4) of the Employment Act (Kshs 75,294), totalling Kshs 95,662.67. Service pay was refused on account of NSSF membership and under five years' service. The Claimant was awarded a certificate of service, costs and interest at court rates from the date of judgment.

Key legal issues

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01

Whether the Claimant's employment was unlawfully terminated or he voluntarily resigned

Holding

The Claimant was constructively dismissed; his resignation was involuntary and amounted to unfair termination

Reasoning

The service contract provided for employment in Eldoret with no transfer clause, and no transfer letter or policy was produced. The employer gave the Claimant only two options - transfer to Naivasha or resign - forcing a choice between family and job. The immediate acceptance of the resignation and deduction of pay in lieu of notice suggested the employer wanted to be rid of him after losing the deployment contract.

p. 7
02

Burden of proving constructive dismissal

Holding

The employee must prove the employer introduced intolerable conditions leaving no other remedy but resignation

Reasoning

Relying on Mariana Onica v Sky Aero Limited, the court applied the principle that it is for the employee, not the employer, to show that the employer was responsible for introducing the intolerable condition. The court found the Claimant discharged this burden on the facts.

p. 6
03

Entitlement to remedies

Holding

Notice pay, leave pro-rata, May 2014 overtime and 6 months' compensation awarded; service pay refused

Reasoning

Notice pay was computed on statutory minimum rates plus 15% house allowance. Compensation was assessed under section 49(4) of the Employment Act considering length of service and termination circumstances. Service pay was barred by NSSF membership and under-five years' service. Uncontroverted evidence of untaken leave and recorded overtime supported those awards.

p. 7

Legal principles established

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  • A transfer is a prerogative of the employer only if the terms of employment provide for it
  • Where an employer gives an employee no option but to resign or accept a transfer not provided for in the contract, the resignation is a constructive dismissal

Court orders

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  1. 1.Declaration that the Claimant's resignation was involuntary and amounted to unfair termination
  2. 2.1 month's salary in lieu of notice Kshs 12,549
  3. 3.Leave pro-rata Kshs 4,666.67
  4. 4.Overtime Kshs 3,153
  5. 5.Compensation for unfair termination of 6 months' salary Kshs 75,294
  6. 6.Total judgment of Kshs 95,662.67
  7. 7.Respondent to issue the Claimant a certificate of service
  8. 8.Costs of the suit to the Claimant
  9. 9.Interest at court rates from the date of judgment until payment in full

Authorities

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Legislation

  • Employment Actsection 13
  • Employment Actsection 49(4)
  • Regulation of Wages (Protective Security Services) Ordernull
  • Labour Institutions Actnull

Cases cited (4)

  • Henry Ochido v NGO Co-ordination Board
    [2015] eKLR
  • Geoffrey Mworia v Water Resources Management Authority & 2 others
    [2015] eKLR
  • Mary Nyanagasi Ratemo & 9 others vs Kenya Police Staff Sacco Limited & Another
    [2013] eKLR
  • Mariana Onica and Another v Sky Aero Limited
    Cause No.1815 of 2014
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007

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, "Chepng’otie v Kenya Kazi Security Services (Employment and Labour Relations Cause 36 of 2017) [2023] KEELRC 2868 (KLR)", Case Analysis (2023). Cause No. 8 of 2017 (Memorandum of Claim dated 4th May 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2868/eng@2023-11-10

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