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ELRCPartially AllowedMemorandum of Appeal dated 5th February, 2021 (number not stated in judgment)· [2025] KEELRC 2077 (KLR)

Vishva Builders Limited v Wekulo (Employment and Labour Relations Appeal E001 of 2021) [2025] KEELRC 2077 (KLR)

Employment and Labour Relations Court
10 July 2025
3,283 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Employment Court confirmed long-serving workers are not casual labourers, but employees must still prove unfair termination to win compensation.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Eldoret (Maureen Onyango, J) against a magistrates' court judgment which had awarded a former employee of the Appellant building contractor all reliefs claimed for unfair termination, including compensation of Kshs. 72,000, one month's pay in lieu of notice, unpaid March 2019 salary, service pay and a certificate of service. The Appellant contended the Respondent was a casual labourer engaged on piece rate and released when a project ended. The court, guided by Selle v Associated Motor Boat Co, re-evaluated the evidence. It distinguished casual employment from piece rate work under the Employment Act and held, on the Appellant's own records (continuous NSSF remittances from May 2013 to February 2019 and paid leave for 2013-2018), that the Respondent was in continuous employment from 2005 to 2019 and was neither casual nor piece rate. However, unfair termination was not proved - the record did not show how employment ended, the Respondent having been referred to another company - so compensation was refused. Because no notice was given, the court invoked section 48(1) of the Labour Institutions Act and the Building and Construction Industry Order to award 2 months' pay in lieu of notice (Kshs. 36,000). March 2019 salary and service pay (the Respondent being an NSSF member under section 35) were refused. The trial judgment was set aside for failing to make individual findings on each prayer, and each party was ordered to bear its own costs in both courts. The Appellant was directed to issue a certificate of service.

Key legal issues

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01

Whether the Respondent was a casual employee or piece rate worker

Holding

He was neither; he was in continuous employment from 2005 to 2019, as shown by NSSF remittances from May 2013 to February 2019 and paid leave from 2013 to 2018

Reasoning

The court distinguished casual employment (contract not exceeding 24 hours, paid at day's end) from piece rate work (pay ascertained by work performed, payable monthly or on completion). The Appellant's own records - continuous NSSF remittances and annual leave payments for 2013 to 2018 - and DW1's cross-examination admissions established continuous service, defeating the casual labourer defence.

p. 5
02

Whether the Respondent's employment was unfairly terminated

Holding

Unfair termination was not proved; there was termination not based on discipline, but the Respondent did not explain how his employment was terminated

Reasoning

The record did not show how the employment ended; the Appellant apparently referred the Respondent to another company. The Respondent gave no explanation of the manner of termination, so the burden of proving unfair termination was not discharged. However, there was no evidence of notice, entitling the Respondent to pay in lieu of notice.

p. 6
03

Entitlement to pay in lieu of notice

Holding

The Respondent was entitled to 2 months' pay in lieu of notice (Kshs. 36,000) under the Building and Construction Industry Order as incorporated by section 48(1) of the Labour Institutions Act

Reasoning

No notice was given before termination - RW1 gave conflicting evidence and no notice document was produced. Having worked more than 4 years continuously, the wages order entitled him to 2 months' notice; wages order terms constitute minimum contractual terms that cannot be varied by agreement, so the court awarded 2 months' pay calculated at Kshs. 4,500 per week.

p. 6
04

Trial court's award of all prayers as prayed

Holding

The trial judgment was set aside because it was not based on the evidence and failed to make individual findings on each prayer

Reasoning

The court reiterated that all prayers in an employment dispute are subject to proof; terminal benefits like leave, salary for days worked and overtime are payable on proof regardless of the mode of termination. A blanket award of all prayers as claimed, without analyzing each item against the evidence, is erroneous.

Legal principles established

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  • A casual employee is one whose engagement provides for payment at the end of each day and who is not engaged for a longer period than twenty-four hours at a time; a piece rate worker must be paid at the end of each month or on completion of the work.
  • Wages orders constitute minimum terms of employment which may not be varied by agreement and apply notwithstanding contrary contract terms.
  • Every prayer in an employment dispute must be specifically proved and separately determined by the court, irrespective of the finding on unfair termination.

Court orders

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  1. 1.A finding that the Respondent did not prove unfair termination of his employment
  2. 2.The prayer for compensation for unfair termination is dismissed
  3. 3.The Respondent is awarded 2 months' pay in lieu of notice, Kshs. 36,000
  4. 4.The prayer for unpaid salary for March, 2019 is dismissed
  5. 5.The prayer for service pay is dismissed
  6. 6.The Appellant to issue a certificate of service to the Respondent
  7. 7.Each party shall bear its own costs both in the trial court and in the appeal

Authorities

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Legislation

  • Employment Act, 2007section 2 (definition of casual employee)
  • Employment Act, 2007section 18(1)(b) (piece rate payment)
  • Employment Act, 2007section 35 (service pay exclusion for NSSF members)
  • Employment Act, 2007section 37 (conversion of casual employment)
  • Labour Institutions Actsection 48(1)
  • Building and Construction Industry Orderentitlement to 2 months' notice after 4 years' continuous service
  • Civil Procedure RulesOrder 21 rule 4 (form of judgments)

Cases cited (5)

  • Selle & Another v Associated Motor Boat Company Ltd & Others
    [1968] EA 123
  • Martin Juma Kundu v Kemu Salt Packers Production Limited
    [2016] eKLR
  • Silas Mutwiri v Haggai Multi-Cargo Handling Services Limited
    [2013] eKLR
  • Kesi Mohamed Salim v Kwale International Sugar Co. Ltd
    [2017] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
On appeal from
Magistrates' Court (ELRC subordinate court)
Not stated
Jurisdiction invoked
First appellate jurisdiction over an employment claim decided by the subordinate court (Memorandum of Appeal dated 5th February, 2021)

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, "Vishva Builders Limited v Wekulo (Employment and Labour Relations Appeal E001 of 2021) [2025] KEELRC 2077 (KLR)", Case Analysis (2025). Memorandum of Appeal dated 5th February, 2021 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2077/eng@2025-07-10

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