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ELRCPartially AllowedEldoret CMELR NO. E004 of 2020 (Appeal)· [2024] KEELRC 2837 (KLR)

Muyaka v SGA Security (Employment and Labour Relations Appeal E019 of 2022) [2024] KEELRC 2837 (KLR)

Employment and Labour Relations Court
14 November 2024
4,679 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed that long-serving 'casual' workers automatically become permanent employees and deserve fair process and full dues before dismissal.

What this practically means

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Executive summary

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This was a first appeal to the Employment and Labour Relations Court at Eldoret against the judgment of Hon. E. Kigen, SRM delivered on 18th March 2022 in Eldoret CMELR No. E004 of 2020. The Appellant, a dog handler employed from 2013 and dismissed in August 2019 over a stolen car battery at Mabati Rolling Mills, challenged the trial court's award of only 9 days' salary, notice pay and a certificate of service, seeking 19 days' salary, leave dues of Kshs. 100,000, 12 months' compensation for wrongful termination and severance pay. The appeal was disposed of by written submissions. The court, applying Selle v Associated Motor Boat Company, re-evaluated the evidence. It held that the Appellant, having served 6 years, ceased to be a casual employee and his contract converted to a term contract by operation of law under sections 2 and 37 of the Employment Act. While the Respondent proved negligence on a balance of probability - the Appellant having admitted in his handwritten statement to allowing strangers to take the battery - due process was not followed and no termination letter was issued. The court found the trial court erred in awarding only 9 days' salary (awarding 19 days at Kshs. 12,600), awarded leave dues of Kshs. 100,000 at 24 days per year under the Regulation of Wages (Protective Security Services) Order, and 4 months' salary (Kshs. 80,000) as compensation for unfair termination under section 49(4). Severance pay was refused as it is only available on redundancy. The judgment of the trial court was set aside and substituted accordingly, with costs and interest to the Appellant.

Key legal issues

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01

Terms of employment - casual vs regular employee

Holding

Having worked for 6 years, the Appellant ceased to be a casual employee; his contract converted to a term contract by operation of law under sections 2 and 37 of the Employment Act.

Reasoning

The Respondent maintained the Appellant was engaged on temporary assignments of not longer than 24 hours paid at the end of each day. Section 2 defines a casual employee as one paid at the end of each day and not engaged for longer than 24 hours, while section 37(1) deems the contract of a casual employee working the equivalent of a month or more to be one with monthly wages. Six years of continuous service triggered automatic conversion.

p. 7
02

Validity of the reason for termination

Holding

The Respondent proved on a balance of probability that the Appellant was negligent in allowing the car battery to be taken, but due process was not followed; the Appellant was not guilty of theft, only negligence in relying on his colleague's word.

Reasoning

Relying on the 'range of reasonable responses' test from Reuben Ikatwa, the court assessed the employer's conduct. The Appellant's handwritten statement admitted allowing two strangers to take the battery. The CCTV footage was not produced in court, so the court could not verify camera tampering, but negligence was established. However, the trial magistrate's finding that due process was not followed stood, and the Appellant was innocent of any charge other than negligence.

p. 8
03

Unpaid salary for days worked in August 2019

Holding

The trial court erred in awarding salary for only 9 days; the Appellant was entitled to pay until the date of termination, which he stated was 19 days.

Reasoning

The suspension letter required the Appellant to report to work daily and did not state suspension was without pay, and the Respondent did not tender terms of service providing for unpaid suspension. There was no termination letter fixing the termination date or reasons. The court therefore awarded salary for the full 19 days worked in August 2019 (Kshs. 12,600).

p. 9
04

Unpaid leave dues

Holding

The Appellant, working in the security industry for 6 years, was entitled to 24 days' leave a year under the Regulation of Wages (Protective Security Services) Order; awarded as prayed at Kshs. 100,000.

Reasoning

Section 28 entitles an employee who has worked two continuous months to annual leave. The Appellant testified he never took leave; the Respondent's witness claimed the Appellant had 4 days off monthly but tendered no proof the leave was utilised, and those were rest days after six working days. Given his industry, the applicable rate was 24 days per year under the Protective Security Services Order; he was in fact entitled to 144 days but was awarded as pleaded.

p. 9
05

Severance pay

Holding

Severance pay is only available on redundancy under section 40(1)(g); the claim, being a termination claim, did not qualify. Refused.

Reasoning

The court agreed with the trial court that this was a claim for termination of employment, not a declaration of redundancy within the meaning of section 40 of the Employment Act. The prayer for severance pay at 15 days for every year worked therefore failed.

p. 9
06

Compensation for unfair termination

Holding

Considering section 49(4) factors, the Appellant was awarded 4 months' salary (Kshs. 80,000) as compensation for unfair termination.

Reasoning

The trial magistrate found due process was not followed but made no compensation award. The court considered section 49(4) factors, including the absence of a termination letter, the 6 years of service, the conditions of work and the reason for termination. The Appellant erred only in not verifying his colleague's word; he was not guilty of the charges levelled against him. Four months' salary was awarded.

p. 9

Legal principles established

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  • A casual employee who works for a period equivalent to not less than one month is by operation of law converted to a term contract
  • On a first appeal, the court must evaluate the evidence afresh and draw its own conclusions, mindful that it did not see or hear the witnesses

Court orders

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  1. 1.The Appellant is awarded leave dues at Kshs 100,000
  2. 2.The Appellant is awarded 4 months' salary as compensation for unfair termination in the sum of Kshs. 80,000
  3. 3.The Appellant is awarded salary for 19 days worked in August 2019 in the sum of Kshs. 12,600
  4. 4.The Appellant will have costs for both the appeal and the lower court
  5. 5.Interest shall accrue on decretal sum from the date of judgment in the lower court

Authorities

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Legislation

  • Employment ActSection 2
  • Employment ActSection 28
  • Employment ActSections 35(1)(c), 37
  • Employment ActSection 40(1)(g)
  • Employment ActSections 43(2), 45
  • Employment ActSections 49, 49(4), 49(4)(e)
  • Employment Act No. 11 of 2007general
  • Regulation of Wages (Protective Security Services) Order, 1998Regulation 10; leave rate of 24 days a year

Cases cited (3)

  • Selle & Another Vs Associated Motor Boat Company Ltd & Others
    [1968] EA 123
  • Chase International Investment Corporation and Another v Laxman Keshra and 3 others
    [1978] eKLR
  • Reuben Ikatwa & 17 Others v Commanding Officer British Army Training Unit Kenya & Another
    [2017] eKLR
On appeal from
Magistrates' Court (Eldoret)
Eldoret CMELR NO. E004 of 2020
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's judgment in an employment claim

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, "Muyaka v SGA Security (Employment and Labour Relations Appeal E019 of 2022) [2024] KEELRC 2837 (KLR)", Case Analysis (2024). Eldoret CMELR NO. E004 of 2020 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2837/eng@2024-11-14

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