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ELRCDismissedELRC Appeal No. E094 of 2023 (consolidated with E091, E092, E093, E095 and E096 of 2023)· [2024] KEELRC 397 (KLR)

Ogembo & 5 others v SGA Security Solutions Limited (Appeal E094, E091, E092, E093, E095 & E096 of 2023 (Consolidated)) [2024] KEELRC 397 (KLR)

Employment and Labour Relations Court
15 February 2024
2,701 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed that old employment benefit claims expire under Section 90, but employees keep the right to refuse worse contract terms.

What this practically means

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Executive summary

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This consolidated first appeal (ELRC Appeal No. E094 of 2023, with E091, E092, E093, E095 and E096 of 2023) arose from Kwale CM ELRC causes in which the appellant, a night security guard employed from May 2009 and constructively dismissed in November 2020, claimed notice pay, overtime, holidays compensation, annual leave, leave travelling allowance, service pay, weekend compensation and house allowance. The trial court found unfair termination and awarded notice pay, 10 months' compensation, gratuity and a certificate of service, but disallowed the pre-2016 claims as time barred under Section 90 of the Employment Act. The appellant appealed, contending the magistrate erred on limitation and in computing dues. The Court, exercising its first-appeal mandate to re-evaluate the evidence, held that claims accruing during the casual employment period (2009 to September 2016) ought to have been claimed as continuing injuries within 12 months or within 3 years, and that the issuance of a written contract on 1 October 2016 ended the casual regime. The appellant's authorities were distinguished as concerning ongoing contracts. The court affirmed the findings of unfair termination, the compensation award, notice pay, service pay under Section 35(5), and the certificate of service under Section 51. The appeal was dismissed with each party bearing own costs, and the findings apply to all consolidated appeals.

Key legal issues

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01

Limitation of employment claims under Section 90 of the Employment Act

Holding

Claims for overtime, holidays, annual leave, leave travelling allowance, weekend compensation and house allowance accruing during the 2009–2016 casual employment were time barred; they should have been claimed as continuing injuries within 12 months or before lapse of 3 years

Reasoning

The court held that oral employment is lawful and carries rights which must be claimed as and when due. Upon issuance of a written contract on 1 October 2016, the casual regime ceased and Sections 9 and 10 applied. Claims from the casual period therefore should have been pursued as continuing injuries or within three years, and the learned magistrate correctly found them time barred.

p. 4
02

Affirmation of the finding of unfair termination and assessment of dues

Holding

The trial court's finding of unfair termination and the awards for notice pay, 10 months' compensation, service pay/gratuity and certificate of service were affirmed

Reasoning

Although the respondent's handling of the redeployment and terminal dues was flawed, the magistrate properly found unfair termination. Compensation and notice pay were discretionary and not shown to have been applied non-judicially. Service pay was properly analysed under Section 35(5) and (6) given NSSF, NHIF and pension contributions, and the certificate of service complied with Section 51.

p. 5
03

Distinguishing authorities relied on by the appellant

Holding

The appellant's authorities on continuing injuries were distinguishable because they concerned ongoing contracts, whereas the appellant's claims arose under a terminated casual regime

Reasoning

The court distinguished Johnson Kazungu and John Kiiru Njiiri, noting they involved ongoing contracts within which benefits accrued, unlike the appellant whose unpaid dues arose under a different employment regime ending with the written contract of 1 October 2016.

p. 5

Legal principles established

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  • A first appellate court may re-evaluate the entire evidence and arrive at its own conclusions, bearing in mind it did not see or hear the witnesses
  • Accrued employment benefits under oral/casual employment must be claimed as continuing injuries within 12 months or within 3 years under Section 90, and cease with conversion to written terms
  • An employee is entitled to refuse a new contract with lesser terms; consent is necessary under Section 10(5) of the Employment Act

Court orders

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  1. 1.The findings in the judgment apply to all the consolidated appeals (E091, E092, E093, E095 and E096 of 2023)
  2. 2.The judgment of the learned magistrate is confirmed on its terms and awards
  3. 3.The appeal is dismissed as without merit
  4. 4.Each party to bear own costs of this appeal

Authorities

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Legislation

  • Employment Act, 2007Section 35(5) and (6)
  • Employment Act, 2007Section 10(5)
  • Employment Act, 2007Section 40(1) and 40(g)
  • Employment Act, 2007Section 44(4)(e)
  • Employment Act, 2007Section 90
  • Employment Act, 2007Section 28(2)
  • Employment Act, 2007Section 27
  • Employment Act, 2007Sections 8, 9 and 10
  • Employment Act, 2007Section 51

Cases cited (8)

  • George Hiram Ndirangu v Equity Bank Limited
    [2015] eKLR
  • John Kiiru Njiiri v University of Nairobi
    [2021] eKLR
  • Synergy Industrial Credit Limited v Oxyplus International Limited & 2 others
    [2021] eKLR
  • Johnson Kazungu v Kenya Marine & Fisheries Research Institute
    [2021] eKLR
  • Fidelity 7 Commercial bank Limited v Kenya Grange Vehicles Industries Limited
    [2017] eKLR
  • Edward Ochieng v Dan Okumu
    [2022] eKLR
  • Mursal & another v Manese (suing as the legal administrator of Dalphine Kanini Manesa)
    (Civil Appeal E20 of 2021) [2022] eKLR
  • Michira & 41 others v Aegis Kenya Ltd t/a Leopard Beach Hotel
    (Cause E088 of 2023) [2023] KEELRC
On appeal from
Principal Magistrate's Court, Kwale (ELRC)
Kwale CM ELRC No. E023 of 2021 (with E020, E022, E024 and E025 of 2021)
Jurisdiction invoked
First appeal from the magistrate's court under employment law (Employment and Labour Relations Court appellate jurisdiction)

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, "Ogembo & 5 others v SGA Security Solutions Limited (Appeal E094, E091, E092, E093, E095 & E096 of 2023 (Consolidated)) [2024] KEELRC 397 (KLR)", Case Analysis (2024). ELRC Appeal No. E094 of 2023 (consolidated with E091, E092, E093, E095 and E096 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/397/eng@2024-02-15

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