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ELRCPartially AllowedNot stated in the judgment· [2025] KEELRC 2557 (KLR)

Kenya Concrete, Structural, Ceramic Tiles, Wood Plys and Interior Design Workers Union v Kenya Builders and Concrete Co Ltd (Cause E723 of 2022) [2025] KEELRC 2557 (KLR)

Employment and Labour Relations Court
25 September 2025
5,106 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that long-serving casual workers become permanent employees and cannot be fired without notice and a fair hearing.

What this practically means

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Executive summary

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The Claimant trade union instituted a claim on 12th October 2022 alleging that the Respondent wrongfully, unfairly and unlawfully terminated the employment of six of its members (Bernard Wanyama, Felix Mutuku, Boniface Amuhua, Felix Kithaka, Patrick Wambua and Peter M. Mutisya) on account of redundancy and failed to pay their final dues. It sought a declaration that the termination was null and void, unconditional reinstatement, adoption of the conciliator's recommendations of 5th September 2022 as court orders, or alternatively payment of terminal dues, with costs and interest. The Respondent denied the claim, asserting the grievants were casuals on two-month contracts who in November 2020 refused conversion to permanent employment under Section 37 of the Employment Act, necessitating separation, and that all terminal dues were paid and discharge vouchers signed. It also challenged the representative capacity of the Claimant's witness for lack of written authority under Rule 23 of the ELRC (Procedure) Rules, 2024. Bernard Wanyama (CW1) testified for the Claimant and Jeremiah Nzioka (RW1), the Respondent's Human Resource Manager, for the Respondent. The court found the grievants had worked as casuals for over three years and were eligible for permanent employment under Section 37 of the Employment Act, that the process under Section 41 was never followed, and that the termination was unfair and unjustified. Reinstatement was refused as untenable given the elapsed time. The court awarded compensation and terminal dues per the conciliator's findings and the Claimant's computations totalling Kshs. 1,035,660, with costs and interest from the date of judgment.

Key legal issues

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01

Status of long-serving casual employees

Holding

Grievants engaged as casuals for over three years were eligible for permanent/monthly employment under Section 37 of the Employment Act and could not be dismissed without due process.

Reasoning

The court applied Section 37(1) of the Employment Act, under which a casual employee who works for continuous periods equivalent to one month or more has the contract deemed to be one where wages are paid monthly. Having served from 2015 to 2020/2021 continuously, the grievants had transitioned out of casual status, entitling them to protections including notice, leave and fair procedure.

p. 9
02

Procedural fairness in termination

Holding

The Respondent did not follow the process envisaged under Section 41 of the Employment Act; the termination was therefore unfair and unjustified.

Reasoning

Section 41(1) requires an employer, before terminating employment, to explain to the employee the reasons for termination in a language the employee understands and to allow the presence of a fellow employee or shop floor union representative. The Respondent offered no evidence that it subjected the grievants to any disciplinary process or explanation before separation, merely relying on their refusal to sign new contracts.

p. 10
03

Effect of the conciliator's report

Holding

The conciliator's recommendations are not automatically binding; the court exercised its discretion but used the conciliator's findings and the Claimant's computations as the basis of the award.

Reasoning

While the Respondent argued under Rule 8(1)(b)(i) of the ELRC Procedure Rules, 2024 that a conciliator's report is not binding, the court nonetheless found the conciliator's findings that the employer failed to produce employment records persuasive, and adopted the union's tabulated terminal dues (service pay, one month's notice, leave, underpayment) as the measure of compensation.

p. 10
04

Reinstatement as a remedy

Holding

Reinstatement was refused because more than three years had elapsed since separation, rendering the prayer untenable.

Reasoning

The grievants were terminated on 2nd December 2020 and the judgment was delivered in September 2025. Section 12(3) of the Employment and Labour Relations Court Act limits the court's power to order reinstatement to within three years of separation, so the remedy was no longer available.

p. 9

Legal principles established

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  • A casual employee who has worked continuously for the periods specified in Section 37 of the Employment Act is deemed to be employed on monthly terms and can only be terminated after following due process under Section 41.
  • Termination without the procedural safeguards of Section 41 of the Employment Act is unfair and unjustified.
  • A conciliator's report is not binding on the ELRC; the court exercises its own discretion on hearing the parties.

Court orders

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  1. 1.A finding that the termination of the grievants was unfair and unjustified
  2. 2.Compensation for unfair dismissal and payment of terminal dues to each grievant per the tabulated computations: Felix Mutuku Kshs. 206,280; Patrick Wambua Kshs. 122,608; Amuwa Bonface Kshs. 122,608; Bernard Wanyama Kshs. 352,264; Peter M. Mutisya Kshs. 152,126; Felix Kitheka Kshs. 79,774; grand total Kshs. 1,035,660
  3. 3.Respondent to pay costs of the suit
  4. 4.Interest at court rates with effect from the date of judgment
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court over trade disputes (Employment and Labour Relations Court Act; Employment Act)

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, "Kenya Concrete, Structural, Ceramic Tiles, Wood Plys and Interior Design Workers Union v Kenya Builders and Concrete Co Ltd (Cause E723 of 2022) [2025] KEELRC 2557 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2557/eng@2025-09-25

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