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ELRCPartially AllowedMombasa CMELRC No. 1084 of 2019 (appeal)· [2024] KEELRC 1403 (KLR)

Isenze v Luvaso (Appeal E067 of 2022) [2024] KEELRC 1403 (KLR)

Employment and Labour Relations Court
14 March 2024
2,165 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer who claims a worker absconded must prove they tried to trace them and followed notice procedures, or the dismissal is unfair.

What this practically means

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Executive summary

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The appellant employer appealed against a judgment of the Mombasa magistrates' court (ELRC) delivered on 5 August 2022, in which the respondent, a former house help employed from November 2013 at Kshs 8,000 per month, was awarded notice pay, 8 months' compensation, service pay and underpayments after a finding of unfair termination. The appellant contended the respondent absconded, that the amended claim was filed without leave, and that the awards lacked evidential basis or reasons. The court, on a first appeal, reiterated its duty to re-evaluate the record while respecting the trial court's advantage of hearing witnesses. It rejected the challenge to the amendment of the claim, holding Rule 14 of the ELRC Procedure Rules, 2016 permits amendment before pleadings close. On termination, it upheld the unfair termination finding: an employee cannot end employment by walking out; the employer bears the statutory duty under Sections 41(2), 44(3) and (4) of the Employment Act to issue notice and demonstrate efforts to trace an allegedly absconded employee. Compensation was reduced from 8 months to 1 month (Kshs 8,000) because the trial court gave no reasons for 8 months as required by Section 45(5). Notice pay of Kshs 8,000 and service pay of Kshs 16,000 were upheld, the latter on the employer's admission that NSSF was not remitted. The underpayment award was recomputed to Kshs 142,382 using successive minimum wage orders. The appeal partially succeeded; each party to bear its own costs of the appeal, with trial court costs as awarded.

Key legal issues

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01

Amendment of pleadings without leave

Holding

Amendment allowed under Rule 14 of the ELRC Procedure Rules, 2016 before close of pleadings; the intervening period justified the amendment

Reasoning

The claim was filed on 5 April 2018 and nothing substantive occurred until June 2021; no hearing directions issued until November 2021, so pleadings had not closed and the amendment was permissible.

p. 3
02

Unfair termination where employee allegedly absconded

Holding

Finding of unfair termination upheld; employer failed to follow Sections 41(2), 44(3) and (4) procedure for gross misconduct/desertion

Reasoning

The employer did not issue notice to the employee to address the alleged misconduct, nor report the dismissal to a labour officer under Section 18(5)(b), leaving the employee at large; termination was therefore unfair for want of due process.

p. 4
03

Compensation of 8 months

Holding

Award reduced to 1 month (Kshs 8,000) because the trial court gave no reasons for 8 months as required by Section 45(5)

Reasoning

Maximum or substantial compensation must be justified by reasons; the employee's conduct and work record must be considered, citing Kenya Broadcasting Corporation v Wakio and Ol Pejeta Ranching. Five years' service did not justify 8 months without rationale.

p. 4
04

Service pay

Holding

Service pay of Kshs 16,000 upheld; employer admitted non-remittance of NSSF, and under Section 35(5) and (6) service pay is due

Reasoning

Admission that NSSF was not paid disentitles the employer from relying on the statutory exclusion; the claimed Kshs 16,000 for 5 years' service was appropriate.

p. 4
05

Underpayments

Holding

Award varied and recomputed at Kshs 142,382 based on applicable minimum wage orders for a Mombasa house help

Reasoning

Applying successive wage orders (Kshs 9,780.95, then 10,954.70, then 12,926.55) against the paid Kshs 8,000, less no house allowance since the respondent was accommodated; employer offered no work records to challenge payments.

p. 5

Legal principles established

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  • An employee cannot terminate their own employment by walking out; the employer bears the legal duty under Sections 44(3), (4) and 41(2) of the Employment Act to issue notice to address alleged desertion
  • The employer must demonstrate efforts taken to trace an employee said to have absconded duty
  • Compensation awards must be justified with reasons under Section 45(5) of the Employment Act

Court orders

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  1. 1.Compensation Kshs 8,000
  2. 2.Notice pay Kshs 8,000
  3. 3.Underpayments Kshs 142,382
  4. 4.Service pay Kshs 16,000
  5. 5.For this appeal, each party is to pay its own costs; costs before the lower court as awarded

Authorities

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Legislation

  • Employment Act, 2007Section 44(3) and (4)
  • Employment Act, 2007Section 41(2)
  • Employment Act, 2007Section 10(2)
  • Employment Act, 2007Section 18(5)(b)
  • Employment Act, 2007Section 45(5)
  • Employment Act, 2007Section 35(5) and (6)
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 14

Cases cited (7)

  • MacKenzie Maritime (E.A) Limited v Moses Ochola Juma
    ELRCA No E073 of 2022
  • Nguda v Ready Consultancy Limited
    Civil Appeal No 128 of 2019
  • Nancy C. Maritim v Sot Tea Growers Sacco Limited
    [2018] eKLR
  • Carolyne Munala v Hoggers Limited
    [2018] eKLR
  • Kenya Broadcasting Corporation v Geoffrey Wakio
    [2019] eKLR
  • Ol Pejeta Ranching Limited v David Wanjau Muhoro
    Civil Appeal No 42 of 2015
  • Gas Kenya Limited v Odhiambo
    (Appeal E006 of 2022) [2022] eKLR
On appeal from
Magistrates' Court (ELRC), Mombasa
Mombasa CMELRC No. 1084 of 2019
Jurisdiction invoked
First appeal from the subordinate court (Employment and Labour Relations Court (Procedure) Rules, 2016; 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, "Isenze v Luvaso (Appeal E067 of 2022) [2024] KEELRC 1403 (KLR)", Case Analysis (2024). Mombasa CMELRC No. 1084 of 2019 (appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1403/eng@2024-03-14

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