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ELRCPartially AllowedCause No E441 of 2020· [2024] KEELRC 2396 (KLR)

Kinyanjui v Walokana Multi-purpose Co-operative Society Limited (Cause E441 of 2020) [2024] KEELRC 2396 (KLR)

Employment and Labour Relations Court
30 September 2024
6,364 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 2013 as a petrol station attendant and promoted to supervisor in January 2017, alleged that upon the Respondent learning of her pregnancy in late 2019/early 2020 she was demoted to pump attendant, exposed to fuel fumes, denied salary for April and May 2020, and constructively dismissed, claiming declarations of constitutional violations, damages and terminal dues. The Respondent admitted employment but denied discrimination, asserting the Claimant's duties as supervisor included manning pumps, that poor performance and member complaints justified the redeployment, and that she deserted duty after 30th March 2020; it also alleged the Claimant relied on a forged sick sheet. The court framed three issues: constructive dismissal, pregnancy discrimination and entitlement to reliefs. Applying the contractual test in Western Excavating v Sharp as adopted by the Court of Appeal in Coca Cola v Ligaga, the court held that unilateral demotion without consultation, contrary to section 10(5) of the Employment Act, amounted to constructive dismissal, the alleged poor performance being unproved and untested by any disciplinary process. The discrimination claim failed: the Claimant had no evidence she communicated the pregnancy, and she was convicted of forgery in respect of the sick sheet. The court awarded a declaration of constructive dismissal, four months' salary compensation (Kshs.65,713.20), one month's notice pay, house allowance of Kshs.88,711.2 for three years, underpayment of Kshs.143,693.2 limited to three years, a certificate of service and interest, but declined general and exemplary damages, ex-gratia pay, maternity leave pay and the withheld April/May 2020 salary. Judgment totals Kshs.314,545.9.

Key legal issues

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01

Whether the Claimant was constructively dismissed

Holding

Yes - the demotion from supervisor to pump attendant without consultation was a repudiatory breach amounting to constructive dismissal.

Reasoning

Applying the contractual test in Western Excavating v Sharp as domesticated in Coca Cola v Ligaga, the court found the unilateral alteration of the Claimant's position went to the root of the contract. The alleged poor performance was unproved, no Performance Improvement Plan or disciplinary hearing was conducted, and the Claimant was never consulted on the demotion contrary to section 10(5) of the Employment Act.

p. 10
02

Whether the Claimant was discriminated on the basis of pregnancy

Holding

No - the discrimination claim failed for want of proof of communication of the pregnancy and of nexus between the demotion and the pregnancy.

Reasoning

Although Article 27(4) and section 5(3) of the Employment Act outlaw pregnancy discrimination, the Claimant admitted she had no evidence of having informed any supervisor of the pregnancy, the alleged supervisor denied being told, and the forged sick sheet undermined her case. Her own testimony confirmed she was not discriminated against for most of her employment.

p. 11
03

Whether the Respondent proved desertion

Holding

No - the employer gave no evidence of steps taken to have the Claimant resume duty or face discipline.

Reasoning

The court noted authorities requiring an employer alleging abscondment to demonstrate reasonable efforts to contact the employee. The Respondent produced no evidence of such efforts nor of any disciplinary proceedings, so the desertion defence did not defeat the constructive dismissal finding.

p. 12
04

Entitlement to reliefs (compensation, notice, house allowance, underpayment, certificate of service)

Holding

Four months' salary compensation, one month in lieu of notice, 15% house allowance for 3 years, underpayment limited to 3 years, and a certificate of service were awarded; other heads were declined.

Reasoning

Compensation under section 49(1)(c) took account of the warning letter, the 6-year-and-4-month service period and the Claimant's conduct. No evidence of compliance with section 36 or payment/consolidation of house allowance was adduced. Underpayment was computed from the Regulation of Wages (General) Orders but limited to the 3 years before termination. The certificate of service flows from section 51.

p. 14

Legal principles established

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  • An employee's position/designation is a fundamental term of the contract of service; unilateral alteration without consultation amounts to a repudiatory breach and may constitute constructive dismissal.
  • Under section 10(5) of the Employment Act, terms of a contract of service cannot be altered without consultation with the employee and written notification of the change.
  • An employer alleging desertion must demonstrate the steps taken to have the employee resume duty or face disciplinary proceedings.
  • A claimant alleging pregnancy discrimination must establish a nexus between the adverse employment decision and the pregnancy.

Court orders

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  1. 1.Declaration that the Claimant was constructively dismissed.
  2. 2.Equivalent of 4 months' salary as compensation for unfair termination, Kshs.65,713.20.
  3. 3.One month's salary in lieu of notice, Kshs.16,428.30.
  4. 4.House allowance at 15% of basic salary for 3 years, Kshs.88,711.2.
  5. 5.Underpayment for April 2017 to March 2020, Kshs.143,693.2 (total award Kshs.314,545.9).
  6. 6.Certificate of service.
  7. 7.Interest at court rates from the date of judgment until payment in full.

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 27, 28, 41, 159(2)(d), 48
  • Employment Act, 2007Sections 5(3), 10(5), 29(4), 31, 36, 46, 49(1)(c), 51
  • Regulation of Wages (General) OrderNot specified
  • Penal CodeSection 345
  • Labour Relations ActNot specified
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (11)

  • Kiilu v Isinya Resorts Limited
    Cause E022 of 2021 [2022] KEELRC 13240 (KLR)
  • Coca Cola East & Central Africa Ltd v Maria Kagai Ligaga
    (2015) eKLR
  • Simon Mbithi Mbane vs Inter Security Services Ltd
    (2018) eKLR
  • G.M.V vs Bank of Africa Limited
    (2013) eKLR
  • Winnie Treezer Ochieng v Label Craft
    (2021) eKLR
  • Western Excavating (ECC) Ltd v Sharp
    (1978) QB 761
  • Rose Wangui Mambo & 2 others v Limuru Country Club & 15 others
    (2014) eKLR
  • Peter K. Waweru v Republic
    (2006) KLR
  • Richard Maingi v Wells Fargo Ltd
    (2017) eKLR
  • Chrispine Onguso Okinyi v Devki Steel Mills Ltd
    (2018) eKLR
  • Albanus Mbithi Mutiso v Fresh Breeze Ltd
    Cause No. 851 of 2017
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Constitution (Articles 27, 28, 41 invoked by parties)

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, "Kinyanjui v Walokana Multi-purpose Co-operative Society Limited (Cause E441 of 2020) [2024] KEELRC 2396 (KLR)", Case Analysis (2024). Cause No E441 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2396/eng@2024-09-30

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