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ELRCPartially AllowedCause No 2282 of 2017· [2024] KEELRC 207 (KLR)

Livingstone v Hatari Security Guards Limited (Cause 2282 of 2017) [2024] KEELRC 207 (KLR)

Employment and Labour Relations Court
9 February 2024
1,982 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 awarded a security guard over Kshs 176,000 because his employer fired him without a valid reason or a hearing and paid below minimum wage.

What this practically means

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Executive summary

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The Claimant, employed as a security guard from August 2015 at a monthly salary of Kshs 9,500, claimed he was summarily terminated on 26th September 2017 without reason or hearing, and that he was denied house allowance, leave and overtime pay. The Respondent filed a response denying the claim but adduced no evidence and filed no submissions. The court framed two issues: whether the termination was fair and lawful, and entitlement to reliefs. Relying on sections 41, 43, 45 and 47(5) of the Employment Act and applied authorities, the court held the termination substantively and procedurally unfair since the Respondent neither proved a valid reason nor accorded the Claimant a hearing; judgment was entered for the Claimant. On reliefs, the court awarded Kshs 70,857 for underpayment against the applicable night-guard minimum wages under the 2015 and 2017 Wages Orders, Kshs 42,723 as house allowance under section 31 of the Employment Act, Kshs 25,195.08 for September 2017 salary, notice and leave pay, and Kshs 37,793.70 being three months' salary as damages for unfair termination, totalling Kshs 176,569.70. Overtime and holiday pay were declined because the court cannot grant awards in abstract given the absence of clarity on the days worked. Costs were awarded to the Claimant, with interest at court rates from the date of judgment until full payment. Judgment delivered virtually in Nairobi on 9th February 2024 by Anna Ngibuini Mwaure, Judge.

Key legal issues

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01

Whether the termination was fair and lawful

Holding

The termination was wrongful, unlawful and unfair for lack of valid reason and breach of fair procedure

Reasoning

The employer did not adduce any evidence to justify the termination or prove a valid reason under sections 43 and 45 of the Employment Act, and did not accord the Claimant a hearing under section 41. The uncontroverted testimony of the Claimant therefore established unfair and wrongful termination.

p. 4
02

Whether the Claimant was underpaid

Holding

Yes; entitled to Kshs 70,857 being the shortfall against the applicable minimum wages for night guards

Reasoning

The Regulations of Wages (General) (Amendment) Orders of 2015 and 2017 set minimum monthly wages for night guards at Kshs 12,221 and Kshs 14,420.90. The Claimant earned Kshs 9,500, below the minima, and the respondent produced no evidence to controvert the claim.

p. 4
03

Whether the Claimant was entitled to house allowance

Holding

Yes; Kshs 42,723 awarded

Reasoning

Under section 31 of the Employment Act the employer must provide housing or a sufficient sum as rent. The respondent failed to produce evidence that salary was inclusive of house allowance or that accommodation was provided.

p. 5
04

Overtime, holiday pay and leave

Holding

Leave and notice/September salary awarded as part of the Kshs 25,195.08; overtime and holiday pay declined

Reasoning

The respondent produced no records to controvert the claims, but the court declined overtime and holiday pay for lack of clarity on the days worked, holding that awards cannot be made in abstract.

p. 5

Legal principles established

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  • For a termination to pass the fairness test there must be both substantive justification and procedural fairness
  • The burden of justifying the lawfulness of a termination, both substantive and procedural, lies with the employer
  • Minimum wage rates in a Wages Order constitute terms of employment and paying below them is an offence

Court orders

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  1. 1.Judgment entered for the Claimant for unfair termination
  2. 2.Award of Kshs 70,857 for underpayment
  3. 3.Award of Kshs 42,723 as house allowance
  4. 4.Award of Kshs 25,195.08 for September 2017 salary and notice pay
  5. 5.Award of Kshs 37,793.70 being 3 months' salary as damages for unfair termination
  6. 6.Total award of Kshs 176,569.70
  7. 7.Costs to the Claimant
  8. 8.Interest at court rates from date of judgment until full payment

Authorities

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Legislation

  • Employment ActSections 10, 31, 41, 42(1), 43, 45, 47(5), 74
  • Labour Institutions ActSection 48
  • Regulation of Wages (General) (Amendment) Order, 2015Minimum wage for night guards
  • Regulation of Wages (General) (Amendment) Order, 2017Minimum wage for night guards
  • Regulations of Wages and Conditions of Employment Act (General Order)Regulation 5
  • Constitution of KenyaArticles 159(2)(d), 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (3)

  • Galgalo Jarso Jillo v Agricultural Finance Corporation
    [2021] eKLR
  • Walter Ogal Anuro vs Teachers Service Commission
    [2013] eKLR
  • Irungu Githae v Mutheka Farmers Co-operative Society Limited
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Institutions Act

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, "Livingstone v Hatari Security Guards Limited (Cause 2282 of 2017) [2024] KEELRC 207 (KLR)", Case Analysis (2024). Cause No 2282 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/207/eng@2024-02-09

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