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ELRCPartially AllowedCause No. 868 of 2012

Mustafa Abas Misri v Akiyda 2000 Limited [2014] KEELRC 1152 (KLR)

Industrial Court of Kenya
7 May 2014
3,303 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A worker paid daily is not automatically casual — after three months of continuous work, Kenyan law protects you as a regular employee who can't be dismissed without a hearing.

What this practically means

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Executive summary

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The claimant, Mustafa Abas Misri, sued Akiyda 2000 Limited for wrongful and unfair termination, claiming notice pay, service pay, severance pay, compensation, unpaid leave for 10 years, and remittance of unpaid NSSF and NHIF dues. He was engaged in November 2000, allegedly on a verbal contract, rising to supervisor at Kshs. 16,280.00 per month, and was terminated on 5th January 2011 after being accused of manipulating bread production records. The respondent defended the claim on the basis that the claimant was a casual employee engaged ad hoc and summarily dismissed for gross misconduct. The court framed the key question as the true nature of the employment relationship. Applying section 18(2)(a) and section 37(1) of the Employment Act and principles from South African labour appeal authorities on control, integration and economic dependence, the court held that although paid daily, the claimant had worked continuously for six months before termination, exceeding the three-month threshold, and by operation of law ceased to be a casual employee. On unfairness, the court found the claimant was summarily dismissed without a hearing or notice to his union, contrary to section 41 of the Employment Act, and declared the termination unfair. Remedies were partly granted: leave of Kshs. 165,020.00, service pay of Kshs. 81,400.00 for ten years, one month's notice pay of Kshs. 16,280.00, and one month's compensation of Kshs. 16,280.00. Unpaid salaries and severance pay were declined. Each party was ordered to bear its own costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.What was the true nature of the relationship between the parties - casual or permanent employee?
  2. 2.Whether the claimant's termination was unfair
  3. 3.What remedies, if any, were due to the claimant

Key legal issues

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01

Whether the claimant was a casual employee or a permanent employee

Holding

The claimant, though paid daily, worked continuously for over three months before termination and by operation of section 37(1) of the Employment Act ceased to be a casual employee

Reasoning

The court applied the statutory definition of a casual employee under section 18(2)(a) and the deeming provision of section 37(1). Both the claimant's evidence and the respondent's witness confirmed continuous engagement for six months before termination. The court applied control, integration and economic dependence criteria from South African authorities and noted that suspension and transfer of the claimant were inconsistent with casual employment, whose contract ends at the end of each day.

p. 4
02

Whether the termination was unfair

Holding

The termination was unfair because the claimant was summarily dismissed for gross misconduct without being given a hearing as required by section 41 of the Employment Act

Reasoning

The respondent admitted summarily dismissing the claimant for gross misconduct. The court relied on its prior decision in Stephen Ongoya v The Nairobi Academy Ltd to hold that section 41 hearing requirements apply even in serious cases of gross misconduct, ensuring natural justice and the presence of a witness. The respondent did not claim to have applied section 41, and the court found this to be an unfair labour practice.

p. 5
03

What remedies were due

Holding

Leave under section 28, service pay under section 35 at 15 days' pay per year for 10 years, one month's notice pay, and one month's compensation were awarded; unpaid salaries and severance pay were declined

Reasoning

Leave was not materially challenged and was granted. The court found no record of NSSF or NHIF remittances and awarded service pay of Kshs. 81,400.00 for ten years based on last gross pay of Kshs. 16,280.00. Unpaid salaries lacked evidential support and severance pay was held to be available only in redundancy. Compensation was limited to one month's pay.

p. 5

Legal principles established

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  • A casual employee engaged continuously beyond the period contemplated under section 37(1) of the Employment Act ceases to be casual by operation of law and becomes entitled to monthly-wage contract protections
  • Even in cases of gross misconduct warranting summary dismissal, the employee must be given a hearing under section 41 of the Employment Act
  • It is the employer's duty to keep employee records

Court orders

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  1. 1.A declaration that the termination of the claimant was unfair
  2. 2.Award for unfair termination at one months' gross salary at Kshs. 16,280.00
  3. 3.Notice pay at Kshs. 16,280.00
  4. 4.Service pay at Kshs. 81,400.00
  5. 5.Each party to bear their own costs

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court under Article 162(2) of the Constitution (implied from the court hearing an employment cause under the Employment Act)

Relief refused

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Claim for unpaid salaries for 10 years

No evidence of any outstanding salaries unpaid

p. 5

Claim for severance pay

Severance pay arises only in redundancy, which was not the case here

p. 5

Remittance of unpaid dues to NSSF and NHIF for 10 years

Court instead awarded service pay at 15 days' pay per year served under section 35 of the Employment Act

p. 5

Costs

Each party to bear their own costs

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

By operation of the law, the Claimant ceased serving as a casual from the time his engagement went beyond the 3 months contemplated under the law.
p. 4Conversion of casual employment by operation of section 37(1) of the Employment Act
Even in a serious case of gross misconduct which warrants summary dismissal, the provisions of section 41 apply.
p. 5Right to hearing notwithstanding gross misconduct
It is the realities of the relationship that has to determine its true nature.
p. 5Substance over label in determining employment relationship
In conclusion therefore, judgement is entered for the claimant against the respondent in the following terms;
p. 6Final orders of the court
a. A declaration that the termination of the claimant was unfair;
p. 6Declaration of unfair termination
e. Each party to bear their own costs.
p. 6Costs order

Issues in the judgment

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minor

The judgment states both that the claimant worked continuously for 6 months immediately before termination and that he had worked for 10 years from November 2000 to January 2011; the treatment of the intervening period is not fully explained

minor

The judgment records the claimant's monthly salary inconsistently - stating his wage was computed and paid every day yet 'to a total of Kshs.16, 280.00 per month'

minor

The costs and reliefs ordered in the conclusion do not expressly include the Kshs.165,020.00 leave award granted in the remedies section

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, "Mustafa Abas Misri v Akiyda 2000 Limited [2014] KEELRC 1152 (KLR)", Case Analysis (2014). Cause No. 868 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1152/eng@2014-05-07

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