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IndustrialPartially AllowedCause 260 of 2009· [2012] KEIC 21 (KLR)

Othoo v Wilham Kenya Limited (Cause 260 of 2009) [2012] KEIC 21 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
17 September 2012
1,481 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that casual employees cannot claim redundancy pay and must prove unpaid wages, while employers must produce records to defend claims.

What this practically means

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Executive summary

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The claimant, Nelson Onyango Othoo, sued Wilham Kenya Limited seeking terminal benefits including redundancy pay, salary arrears for 15 days, unprocessed claims for 13 days, accrued overtime, compensation for wrongful loss of employment, interest, 10% for intimidation and costs. He testified he was employed from 4-5-2005 until 5-8-2008 and terminated through a purported declaration of redundancy without following the correct procedure. The respondent, through its Human Resource Manager Damaris Kimosop, maintained that the claimant was a casual employee paid Kshs.300 per day, terminable by one day's notice, and that no redundancy could be declared on casuals. The matter was part-heard by Justice S.M. Madzayo before being taken over; the parties consented to the new judge writing the award from where the matter had reached. The court framed three issues: whether the claimant was a casual employee, whether redundancy could be declared on casuals, and entitlement to terminal benefits. Applying the Section 2 definition of a casual employee and relying on paysheets and attendance records not challenged by the claimant, the court found the claimant was a casual employee and, following its earlier decision in Consolata Wanjiku Ndirangu v Wilham (K) Ltd, that no redundancy could be declared on him, entitling him only to one day's notice pay under Section 35(1). Salary arrears and unprocessed claims were awarded (Kshs.8,400) because the respondent, as custodian of payment records, failed to prove payment, and leave pay of Kshs.11,025 (already deposited with the District Labour Office) was awarded. Overtime, loss of employment and intimidation were refused for lack of evidence. Total award: Kshs.19,725, plus costs and interest.

Key legal issues

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01

Whether the claimant was a casual employee

Holding

The claimant was a casual employee under Section 2 of the Employment Act, 2007, as evidenced by the attendance summary and the Casual Employees' Paysheet which he did not challenge.

Reasoning

Applying the statutory definition of a casual employee as one paid at the end of each day and not engaged for longer than twenty-four hours at a time, the court found the evidence from both parties fitted the claimant as a casual employee. His attendance summary showed non-continuous attendance, corroborating the respondent's paysheet which he was deemed to have admitted by not challenging its authenticity.

p. 2
02

Whether redundancy can be declared in respect of casual employees

Holding

No redundancy could be declared on the claimant; as a casual employee he was entitled only to one day's termination notice and pay under Section 35(1), not the redundancy benefits under Section 40(1)(f).

Reasoning

Following the court's earlier decision in Consolata Wanjiku Ndirangu v Wilham (K) Ltd, the court held that because a casual employee is engaged for not more than twenty-four hours at a time, Parliament could not have intended casual and permanent employees to be dealt with similarly on termination, having classified and defined them separately in the Employment Act.

p. 3
03

Whether the claimant is entitled to the terminal benefits prayed for

Holding

The claimant was awarded notice pay of Kshs.300, salary arrears and unprocessed claims totalling Kshs.8,400, and leave pay of Kshs.11,025; no award for overtime, loss of employment or intimidation for lack of evidence.

Reasoning

The respondent admitted notice pay and leave pay (already deposited with the District Labour Office). For salary arrears, the burden of proving payment was placed on the respondent as custodian of records; RW1 did not complete her evidence after seeking an adjournment to avail documents, so 28 days were awarded. Overtime, loss of employment and intimidation failed for lack of evidence.

p. 3

Legal principles established

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  • A casual employee, engaged for not more than twenty-four hours at a time, is only entitled to one day's termination notice and pay under Section 35(1) of the Employment Act, and not the redundancy benefits under Section 40(1)(f).
  • Where the employer is the custodian of payment records and fails to prove payment, the burden of proving that salary was paid falls on the employer.

Court orders

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  1. 1.Notice pay of Kshs. 300.00
  2. 2.Salary arrears of Kshs. 8,400.00 (28 days x Kshs.300)
  3. 3.Leave pay of Kshs. 11,025.00
  4. 4.Total award of Kshs. 19,725.00
  5. 5.Respondent to pay the claimant's costs plus interest
  6. 6.Dues already deposited with the District Labour Office may be used to pay part of the sum awarded

Authorities

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Legislation

  • Employment ActSection 2 (definition of casual employee)
  • Employment ActSection 2 (definition of redundancy)
  • Employment ActSection 40
  • Employment ActSection 40(1)(f)
  • Employment ActSection 35(1)
  • Employment ActSection 10(7)

Cases cited (1)

  • Consolata Wanjiku Ndirangu v Wilham (K) Ltd
    Industrial Court Cause No.222(N) of 2008
Jurisdiction invoked
Industrial Court jurisdiction over employment and labour disputes (Labour Institutions Act); claim filed as Cause 260 of 2009

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Othoo v Wilham Kenya Limited (Cause 260 of 2009) [2012] KEIC 21 (KLR)", Case Analysis (2012). Cause 260 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2012/21/eng@2012-09-17

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