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ELRCPartially AllowedMombasa CMELRC No. 210 of 2020 (Appeal)· [2023] KEELRC 3451 (KLR)

Haroon v Kashali (Appeal E006 of 2023) [2023] KEELRC 3451 (KLR)

Employment and Labour Relations Court
23 November 2023
1,714 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 cut a worker's award from Kshs. 466,670 to Kshs. 16,000 because he walked off the job after being refused a salary advance.

What this practically means

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Executive summary

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This first appeal from the Principal Magistrate's Court at Mombasa (CMELRC No. 210 of 2020, judgment of 29 December 2022) challenged findings of unfair termination of employment and an award of terminal dues. The respondent claimed he was orally employed from January 2013 as a shop assistant at Kizingo and was denied entry at his workplace on 18 June 2020; the appellant alleged the respondent was a casual employee who committed gross misconduct and absconded. The trial court found unfair termination and awarded notice pay, underpayments and six months' compensation totalling Kshs. 466,670.28 with costs. On re-evaluation, the ELRC found that continuous oral employment from January 2018 converted to term employment protected under Section 37 of the Employment Act, but that absent a written contract the respondent was a general worker whose Kshs. 15,000 monthly wage exceeded the applicable minimum wage, making the underpayments award erroneous. The court held that the respondent deserted his employment after being refused a Kshs. 5,000 salary advance, having taken a Kshs. 14,000 advance in June 2020, and thus could not claim compensation or notice pay. Service pay was not due as NSSF and NHIF dues were paid. However, the appellant filed no work records on leave, entitling the respondent to annual leave pay of Kshs. 16,000 under Section 28(2). The appeal was allowed, the trial judgment set aside, and the respondent awarded Kshs. 16,000 only, with each party bearing its own costs.

Key legal issues

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01

Nature of employment - casual or protected term employment

Holding

Employment from January 2018 to 18 June 2020 ceased being casual and converted to term employment protected under Section 37 of the Employment Act; absent a written contract the respondent was a general worker covered under the Minimum Wage Orders

Reasoning

Section 8 permits oral employment, but continuous employment beyond casual limits converts to protected term employment under Section 37. Failure to issue a written contract left the employer exposed. Without a written contract assigning the shop assistant role, the respondent was classified as a general worker whose wage was regulated by the Minimum Wage Orders.

p. 3
02

Whether termination was unfair

Holding

No unfair termination - the respondent deserted employment after being refused a salary advance; remedies for unfair termination and notice removed

Reasoning

The evidence, including the respondent's own report to the labour office, showed he requested a salary advance on 18 June 2020, was refused, and left employment demanding payment for days worked, leave, holidays and notice. Desertion for no good cause, after receiving a Kshs. 14,000 advance against a Kshs. 15,000 monthly wage, extinguished entitlement to compensation or notice pay.

p. 3
03

Underpayments and service pay

Holding

Underpayments award in error since wages paid exceeded the general worker minimum wage; service pay not due as NSSF and NHIF dues were paid

Reasoning

The wage paid (Kshs. 15,000) exceeded the minimum wage for a general worker in Mombasa across the relevant periods (May 2015 to June 2020), so even without housing allowance the respondent was well compensated. Both parties confirmed statutory NSSF and NHIF dues were paid, hence no service pay was payable.

p. 4
04

Annual leave pay

Holding

Respondent entitled to annual leave pay of Kshs. 16,000 for 18 months based on last wage, as appellant filed no work records showing leave taken

Reasoning

The appellant filed no work records even where the respondent was said to be a casual employee, and no record showed the respondent took annual leave or was compensated for it. The labour officer's finding that the appellant closed for several weeks each year was not submitted before the trial court.

p. 4

Legal principles established

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  • Oral employment that is continuous and not of a casual nature converts to term employment protected under Section 37 of the Employment Act
  • An employee who deserts employment cannot claim remedies for unfair termination or notice pay
  • Costs in employment and labour relations claims are discretionary and should issue rarely

Court orders

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  1. 1.Appeal allowed in its merit
  2. 2.Judgment in Mombasa CMELRC Cause No. 210 of 2020 set aside
  3. 3.Respondent awarded annual leave pay of Kshs. 16,000 only
  4. 4.Each party to bear own costs

Authorities

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Legislation

  • Employment Act, 2007Section 8
  • Employment Act, 2007Section 37
  • Employment Act, 2007Section 47
  • Employment Act, 2007Section 28(2)
  • Employment and Labour Relations Court Act, 2011Section 12(4)
  • Constitution of Kenya, 2010Article 159
  • Minimum Wage Orders

Cases cited (3)

  • Robai Musinzi v Mohammed Safdar Khan
    [2012] eKLR
  • Harrison Meshack Lusimbo & another v Mareba Enterprises Limited
    [2013] eKLR
  • Kenfreight (EA) Ltd v Benson Nguti
    [2016] eKLR
On appeal from
Principal Magistrate's Court, Mombasa (CMELRC)
Mombasa CMELRC No. 210 of 2020
Jurisdiction invoked
First appellate jurisdiction over the Principal Magistrate's Court (ELRC Act, appeals from subordinate courts in employment 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, "Haroon v Kashali (Appeal E006 of 2023) [2023] KEELRC 3451 (KLR)", Case Analysis (2023). Mombasa CMELRC No. 210 of 2020 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3451/eng@2023-11-23

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