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ELRCPartially AllowedAppeal No. E039 of 2022· [2024] KEELRC 1543 (KLR)

Odida v Owano (Appeal E039 of 2022) [2024] KEELRC 1543 (KLR)

Employment and Labour Relations Court
20 June 2024
3,488 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed a farm worker was an employee wrongly fired without notice or reasons, but only awarded claims he actually proved with evidence.

What this practically means

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Executive summary

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The Respondent, Paul Osiala Owano, sued the Appellant before the Kisumu Chief Magistrate's Court claiming unlawful termination, pay in lieu of notice, gratuity, overtime, house allowance and salary underpayment totaling Kshs. 450,802/-. On 11th October 2022 the trial court (Hon. Kenneth Cheruiyot) awarded all prayers. The Appellant appealed, contending the Respondent was an independent contractor, not an employee, and that the awards lacked evidential basis. The appeal was canvassed by written submissions. C. N. Baari, J distilled three issues: whether an employer-employee relationship existed, whether the termination was unfair, and whether the trial court's awards were deserved. Applying the irreducible minimums for a contract of service, the court found an oral agreement for guarding and sugarcane farm work, continuous services, and regular monthly Mpesa payments, and upheld the finding of an employer-employee relationship. The Appellant having taken no disciplinary process, given no reasons and issued no notice, the termination was held unfair. On quantum, the court emphasized that reliefs must be specifically proven; it upheld the maximum 12 months' salary compensation at Kshs. 78,000/- (monthly salary assessed at Kshs. 6,500/-), one month's notice pay at Kshs. 6,500/- and leave pay at Kshs. 6,500/-. It set aside the awards for overtime, house allowance, rest days, underpayment and gratuity for lack of proof. The appeal partly succeeded, with each party bearing their own costs of both the appeal and the lower court claim. Judgment delivered at Kisumu on 20th June 2024.

Key legal issues

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01

Whether an employer-employee relationship existed between the parties

Holding

An employer-employee relationship existed; the Respondent was an employee, not an independent contractor, and the trial court's finding was upheld.

Reasoning

Applying the irreducible minimums (control, integration, economic reality, mutuality of obligation), the court found an oral agreement for guarding and farm work, continuous services rendered, and monthly Mpesa payments admitted by the Appellant. The Employment Act recognises oral contracts of service and places the obligation to issue a written contract on the employer.

p. 6
02

Whether the termination was unfair

Holding

Termination was unfair; the Appellant gave no notice, no valid reasons and no disciplinary process.

Reasoning

Having found the Respondent was an employee, and the Appellant having taken no steps to fairly separate with him — no disciplinary process, no reasons, no notice — the termination could not stand under Sections 41 and 43 of the Employment Act. The trial court's finding on unfair termination was upheld.

p. 6
03

Quantum of awards on unfair termination, notice and leave

Holding

Maximum 12 months' salary compensation upheld at Kshs. 78,000/- based on salary of Kshs. 6,500/-; one month's notice pay and leave pay upheld.

Reasoning

The finding of unfair termination entitled the Respondent to compensation; given his length of service (over 12 years), the maximum award was justified. Since the applicable Minimum Wage Regulation was not produced, the monthly salary of Kshs. 6,500/- as at termination was adopted for computation of all upheld awards.

p. 6

Legal principles established

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  • A finding of unfair termination does not automatically entitle an employee to all reliefs sought; each remedy must be specifically proven.
  • On a first appeal the court is obliged to re-examine the evidence afresh and make its own findings.

Court orders

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  1. 1.The award on account of underpayment is set aside in its entirety.
  2. 2.The award of 12 months' salary for unfair termination is upheld at Kshs. 78,000/-
  3. 3.The award of one-month salary in lieu of notice is upheld at Kshs. 6,500/-
  4. 4.Payment on account of leave is equally upheld at Kshs. 6,500/-
  5. 5.Each party to bear their own costs of both the appeal and the claim before the lower court.

Authorities

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Legislation

  • Evidence ActSection 107
  • Employment Act, 2007Section 2
  • Employment Act, 2007Sections 41 & 43
  • Employment Act, 2007Section 74

Cases cited (11)

  • Anthony Njuguna v Afri-Cina International Co. Ltd & another
    [2022] eKLR
  • Fredrick Byakika v Mutiso Menezes International Limited
    (2016) eKLR
  • Anthony Yamo Ihito v Basco Products (Kenya) Limited
    [2022] eKLR
  • Kenya Kazi Services Ltd v Dickson Onjwaya Wasike & 42 others
    [2021] eKLR
  • Hatari Security Guards Ltd v Odongo
    (Appeal E012 of 2022) [2023] KEELRC 2812 (KLR)
  • Kenya Broadcasting Corporation v Geoffrey Wakio
    [2019] eKLR
  • Kenya Hotels & Allied Workers Union v Alfajiri Villas (Magufa Ltd)
    Cause No. 229 of 2013 [2014] eKLR
  • Independent Electoral and Boundaries Commission & Another v Stephen Mutinda Mule & 3 Others
    Civil Appeal No. 219 of 2013 [2014] eKLR
  • Okeno v Republic
    [1972] EA 32
  • Ready Mixed Concrete (South East) Limited v Minister of Pension and National Assurance
    (1968) 2 QB 497
  • Stanley Mungai Muchai v National Oil Corporation of Kenya
    (2012) eKLR
On appeal from
Kisumu Chief Magistrate's Court
Jurisdiction invoked
First appellate jurisdiction over the Chief Magistrate's Court (appeal against judgment and orders of the trial court)

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, "Odida v Owano (Appeal E039 of 2022) [2024] KEELRC 1543 (KLR)", Case Analysis (2024). Appeal No. E039 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1543/eng@2024-06-20

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