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ELRCPartially AllowedNot stated in judgment

Joyce Wairimu v Tiara Limited [2014] KEELRC 1494 (KLR)

Employment and Labour Relations Court
18 December 2014
1,803 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 awarded a shop assistant overtime, leave and holiday pay, but she lost her unfair termination claim because she couldn't prove she was dismissed.

What this practically means

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Executive summary

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Joyce Wairimu, a former sales girl employed by Tiara Limited from October 2009 to December 2013, sued for Kshs.1,395,271.85 claiming unfair termination, underpayments, overtime, unpaid leave, public holiday pay, house allowance and pay in lieu of notice. The Respondent denied unfair termination, asserting the Claimant absconded duty and was rude to customers, and denied owing her anything. The court framed two issues: whether the Claimant was dismissed or absconded, and whether she was entitled to her prayers. On the first issue, applying section 47(5) of the Employment Act, the court held the evidence did not clearly establish termination or abscondment and found the Claimant had not proved unfair termination on a balance of probabilities, defeating the claims for pay in lieu of notice. On quantum, the court recharacterised her grade from 'salesman driver' to 'Shop Assistant' under the Regulation of Wages (General) Order and found she was paid above the consolidated statutory minimum wage, dismissing the underpayment and house allowance claims. However, the court awarded Kshs.77,653.30 as overtime (limited to 12 months as a continuing injury, at 1.5 times the hourly rate using the General Order formula), Kshs.47,600 for 89.25 days of untaken annual leave, and Kshs.25,600 for public holiday work at double rate over 6 days per year for 4 years. The Claimant, having been substantially successful, was awarded costs of the suit, with interest on the decretal sum at court rates from the date of judgment. Judgment was read in open court on 18th December 2014.

Questions the Court framed

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

  1. 1.Whether the Claimant was dismissed or absconded duty
  2. 2.Whether the Claimant is entitled to her prayers

Key legal issues

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01

Whether the Claimant was unfairly terminated or absconded duty

Holding

The evidence did not establish whether the employment was terminated or the Claimant absconded; unfair termination was not proved on a balance of probabilities.

Reasoning

The Claimant said she was phoned by the Director and told to hand over keys and never return; the Respondent's witness gave a different account. Section 47(5) of the Employment Act places the burden of proving unfair termination on the employee. The court found the Claimant failed to discharge this burden.

p. 2
02

Whether the Claimant was underpaid relative to statutory minimum wages

Holding

The claim for underpayment failed because the Claimant's correct grade was Shop Assistant, and her pay exceeded the consolidated statutory minimum wage including 15% house allowance.

Reasoning

The court examined the Regulation of Wages (General) Order and found the Claimant had wrongly based her claim on the 'salesman driver' grade, which requires use of a motor vehicle in sales. Her proper grade was Shop Assistant, whose minimum wage with 15% house allowance was below her actual pay.

p. 3
03

Whether the Claimant was entitled to overtime, unpaid leave and public holiday pay

Holding

Overtime awarded for only 12 months (Kshs.77,653.30), leave awarded at Kshs.47,600 for 89.25 days, and public holiday pay awarded at Kshs.25,600.

Reasoning

The court found overtime to be a continuing injury and allowed only 12 months' claim, computing 14 overtime hours per week. Unpaid leave was not specifically contested by the Respondent and was awarded. Public holiday pay was awarded at double rate for 6 holidays per year over 4 years.

p. 4

Legal principles established

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  • The burden of proving unfair termination rests on the employee, while the employer must justify the grounds of termination
  • Overtime is paid at 1.5 times the hourly rate computed per the Regulation of Wages (General) Order formula of one two-hundred-and-twenty-fifth of monthly salary
  • Work done on a public holiday attracts pay at double the normal rate
  • Where wage is consolidated to include 15% house allowance, no separate house allowance is payable

Court orders

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  1. 1.Award of Kshs.77,653.30 as overtime pay
  2. 2.Award of Kshs.47,600 as unpaid leave (89.25 days based on 21 days annual leave per year)
  3. 3.Award of Kshs.25,600 as public holiday pay (6 days a year for 4 years at double the normal rate)
  4. 4.Claimant awarded costs of the suit
  5. 5.Decretal sum to attract interest at court rates from date of judgment

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 Court jurisdiction over unfair termination and employment benefits claims (Employment Act)

Relief refused

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Underpayment of wages

Claimant was paid above the statutory minimum consolidated wage for her correct grade (Shop Assistant); the grade claimed (salesman driver) was inapplicable

p. 3

House allowance

Wages were consolidated inclusive of 15% house allowance and the amount paid exceeded the consolidated wage

p. 4

Pay in lieu of notice

Pay in lieu of notice is only payable where termination is unfair, and unfair termination was not proved

p. 4

Unfair termination claim / general damages

Claimant failed to discharge her burden of proving unfair termination on a balance of probabilities

p. 2

Costs

The Claimant, having been substantially successful in her claim, is awarded costs of the suit.

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.

Section 47(5) of the employment Act places the burden of proving unfair termination of employment or wrongful dismissal on the employee.
p. 2burden of proof in unfair termination
I find that in this case the Claimant has not proved on a balance of probabilities that her employment with the Respondent was unfairly terminated.
p. 2failure to prove unfair termination
From the foregoing, the Claimant was not underpaid from 1 st May 2011 as she was consistently paid wages above the consolidated statutory minimum wages.
p. 3underpayment claim dismissed
Based on the Claimant's salary of Kshs.16,000/= and using the formula for overtime in the General Order of one two-hundred-and-twenty-fifth, the Claimant is entitled to Kshs.77,653.30 which I award the Claimant.
p. 4overtime award
Having worked from October 2009 to December 2013, she is entitled to 89.25 days based on 21 days annual leave based on 21 days annual leave per year. She is entitled to Kshs.47,600 which I award her.
p. 4unpaid leave award
According to the General Order the Claimant is entitled to be paid at double the normal rate for any work done on a public holiday.
p. 4public holiday pay
The decretal sum shall attract interest at court rates from date of judgment.
p. 5interest on decretal sum - final orders

Issues in the judgment

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minor

The Memorandum of Claim is dated '10th and filed on 11th February 2014' and the claim is filed against 'the defendant' though the Respondent is a limited company

minor

Underpayment claim covers October 2009 to December 2013 but the court's analysis addresses only from 1st May 2011 onwards

minor

The claimant is stated to have been represented by Mr. Kimani at hearing but Nganga appears for the Claimant at delivery of judgment

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, "Joyce Wairimu v Tiara Limited [2014] KEELRC 1494 (KLR)", Case Analysis (2014). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1494/eng@2014-12-18

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