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ELRCDismissedELRC Cause (Mombasa) – unnumbered on face of judgment· [2023] KEELRC 3450 (KLR)

Mnoi v Hakika Transport Services Limited (Cause 916 of 2015) [2023] KEELRC 3450 (KLR)

Employment and Labour Relations Court
23 November 2023
2,904 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court confirmed employers can lawfully dismiss workers who refuse a reasonable work transfer, even without a written employment contract.

What this practically means

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Executive summary

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The claimant, a truck driver employed by the respondent from 1998, challenged his summary dismissal of 26 October 2015 arising from his refusal to take up a transfer from Mombasa to Mazeras issued on 16 September 2015. He sought 12 months' compensation, notice pay, unpaid leave for 357 days, off-day pay, public holiday pay, overtime and costs. The respondent maintained that the transfer was lawful, the claimant absconded, and the summary dismissal followed a proper disciplinary process. The court held that although the claimant had no written contract, his continuous and regulated employment was protected under Section 37 of the Employment Act. However, transfer of an employee is the prerogative of the employer, and subject to sufficient notice the employee must comply with lawful directions. The claimant was given ample notice, including a 7-day extension, and a disciplinary hearing which he attended with a representative. His continued absence amounted to gross misconduct under Sections 44(4)(a) and (e) read with Section 41(2), justifying summary dismissal; notice pay and compensation therefore fell away. The monetary claims also failed: work records showed at least four off days monthly; the claim for 357 leave days would constitute unjust enrichment given bonus-enhanced wages; no particulars of public holidays were given; and the agreed bonus system for extra port trips defeated the overtime claim. The related ELRC Cause No. 758 of 2015 concerned redundancy and was inapposite. The claim was dismissed in its entirety with each party bearing own costs.

Key legal issues

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01

Status of the employment relationship

Holding

The employment was continuous and regulated and thus protected under Section 37 despite no written contract

Reasoning

The claimant worked under the respondent's control and guidance, was allocated work daily, and his duties were not of a casual nature expected to end shortly. Continuous service from 1998 to 2015 brought the employment within the protection of Section 37 of the Employment Act, so it was not casual employment.

p. 4
02

Lawfulness of the transfer and refusal to report

Holding

The transfer was a lawful exercise of the employer's prerogative; the claimant's refusal amounted to insubordination

Reasoning

Subject to sufficient notice, an employee is bound to take lawful directions of the employer. The claimant was given notice on 16 September 2015, an extension of 7 days on 7 October 2015 and further notice on 17 October 2015, yet never reported to Mazeras. His work station had properly shifted from Mombasa to Mazeras.

p. 4
03

Justification of summary dismissal

Holding

Summary dismissal for absenteeism/refusal to transfer was justified under Sections 44(4)(a) and (e) read with Section 41(2)

Reasoning

The claimant was notified of absenteeism, given a show cause notice, invited to a disciplinary hearing on 22 October 2015 which he attended with a representative, and then dismissed on 26 October 2015. Absence from duty station without good cause and refusal of lawful instructions constitute gross misconduct warranting summary dismissal.

p. 5
04

Claims for leave, off days, public holidays and overtime

Holding

All these monetary claims failed on the respondent's work records and the claimant's own admissions

Reasoning

The biometric/work schedules showed at least four days off per month satisfying Section 27; the claim for 357 leave days would be unjust enrichment given the higher monthly earnings from bonuses; no particulars of public holidays were given; and the agreed bonus system for extra trips defeated the overtime claim.

p. 5

Legal principles established

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  • An employer has the prerogative to transfer an employee subject to sufficient notice; refusal to take up a lawful transfer amounts to insubordination and absence without good cause justifying summary dismissal
  • Continuous, regulated employment under the employer's control is protected under Section 37 of the Employment Act even without a written contract
  • An employee absent from his duty station without good cause or refusing lawful directions commits gross misconduct justifying summary dismissal

Court orders

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  1. 1.The claim is dismissed in its entirety
  2. 2.Each party to bear own costs

Authorities

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Legislation

  • Employment Act, 2007Section 37
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 41(2)
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44(4)
  • Employment Act, 2007Section 44(4)(a) and (e)
  • Employment Act, 2007Section 27
  • Employment Act, 2007Section 28

Cases cited (8)

  • Ronald Odeke v Fidelity Security Limited
    [2011] eKLR
  • Josephine Akinyi v Farhiyo Mohamed
    [2012] eKLR
  • Francis Maina Kamau v Lee Construction
    [2014] eKLR
  • George Onyango Akuti v G4S Security Services Kenya Ltd
    [2013] eKLR
  • CFC Stanbic Bank Ltd v Danson Mwashako Mwakuona
    [2015] eKLR
  • Anne Wairimu Kimani v Kenya Agricultural Livestock Research Organisation (KALRO)
    [2017] eKLR
  • Severine Luyali v Ministry of Foreign Affairs & International Trade & 3 others
    [2014] eKLR
  • Boniface Olienge & 67 Others v Hakika Transport Services Limited
    ELRC Claim No. 758 of 2015
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (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, "Mnoi v Hakika Transport Services Limited (Cause 916 of 2015) [2023] KEELRC 3450 (KLR)", Case Analysis (2023). ELRC Cause (Mombasa) – unnumbered on face of judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3450/eng@2023-11-23

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