Equator Bottlers Limited v Sidede (Appeal E046 of 2024) [2025] KEELRC 1439 (KLR)
The bottom line
#Kenya's Employment Court confirmed casual workers become permanent after continuous service, but slashed parts of the award, including leave beyond three years.
What this practically means
#Executive summary
#Key legal issues
#Conversion of casual employment to term/monthly contract
The Respondent's continuous service converted his contract under section 37 and 35 of the Employment Act; the Magistrate did not err in so holding, and no specific plea of conversion was necessary given the pleadings as to monthly salary.
Section 37(1) deems a casual employee who works for the equivalent of not less than one month, or performs work not completable within three months, to be employed on monthly wages. The Respondent's pleadings asserted a monthly salary while the Appellant asserted a consolidated salary, giving the Magistrate a basis to find entitlement to a monthly salary.
Lawfulness of the termination
The termination was unfair and unlawful: no disciplinary action, no notice and no hearing were afforded to the Respondent.
The Appellant led no evidence justifying the termination and took no disciplinary steps. The Magistrate's finding of unlawful dismissal stood, and the 12 months' compensation awarded was left undisturbed in substance.
Award of benefits in lieu of service
The award was reversed in its entirety as it is not provided for in law and service pay was not payable to the Respondent.
Service pay is payable under section 35 of the Employment Act; 'benefits in lieu of service' is an alien head with no statutory foundation, so the Magistrate lacked a basis for the award.
Correct monthly salary multiplicand
The figure of Kshs. 18,000/- was erroneous; the proper monthly salary computed from the Appellant's stated daily wage of Kshs. 653.10 is Kshs. 16,980.60.
Although the pleadings gave a basis for finding a monthly salary, the sum adopted as multiplicand was not established. Using the Appellant's own daily wage figure aggregated monthly yields Kshs. 16,980.60; the notice award and the 12 months' compensation were recalculated on that basis.
Legal principles established
#- A casual employee whose service meets the thresholds in section 37(1) of the Employment Act is deemed to have a contract with monthly wages under section 35(1)(c).
- On a first appeal, the court must reconsider and re-evaluate the evidence and draw its own conclusions while allowing for the fact that it neither saw nor heard the witnesses.
- Where monthly salary cannot be established, the court may compute it from the daily wage multiplicand supplied by the employer.
- Employment claims are subject to the three-year limitation period under section 90 of the Employment Act.
Court orders
#- 1.A declaration that the termination of the Respondent was unfair and unlawful
- 2.Compensation for the unlawful and unfair dismissal equivalent to 12 months salary - Kshs. 16,980.60 x 12 = Kshs. 203,767.20
- 3.Annual leave dues for 3 years - Kshs. 50,941.80
- 4.Certificate of service
- 5.Costs and interest of the claim in the Magistrate's Court
- 6.No order on the costs for the appeal
- On appeal from
- Magistrate's Court at Winam
- Jurisdiction invoked
- First appellate jurisdiction over appeals from the Magistrate's Court in employment matters
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Equator Bottlers Limited v Sidede (Appeal E046 of 2024) [2025] KEELRC 1439 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1439/eng@2025-05-15
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.