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ELRCStruck OutCause No. 78 of 2017

Peter Waithaka Muriithi v Timsales Company Limited [2020] KEELRC 890 (KLR)

Employment and Labour Relations Court of Kenya at Nakuru
12 June 2020
1,234 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 threw out a worker's claim because he couldn't prove he was actually employed by the company he sued.

What this practically means

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Executive summary

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The claimant sued Timsales Company Limited claiming his employment from March 2013 to June 2014 was unfairly terminated in June 2014 without payment of terminal dues. He sought underpayments of Ksh.69,313.44 from October 2010 to February 2014, leave pay of Ksh.8,379, overtime of Ksh.14,928.74, notice pay of Ksh.9,780.95, severance pay of Ksh.192,687.82, compensation and costs. He testified he worked as a casual splitting and moving timber, paid weekly through identity cards clocked at the gate, supervised by one Nahashon Maina, whom he admitted bribing to be picked for work, and that he had no NSSF or other benefits. The respondent denied ever employing the claimant, filed detailed muster roll and clocking card records for over 700 daily casuals as required under section 10(6) and (7) of the Employment Act, 2007, and its human resource assistant, Philip Ouma Agutu, testified the claimant's details could not be traced in the system. The court held that a claimant whose employment is denied bears strict proof of the employment relationship, which is a jurisdictional fact. The respondent's unchallenged work records did not contain the claimant's details, and his pleadings and evidence carried contradictory employment periods. The court found that if the claimant worked at all, it was under a parallel, bribe-driven system run by supervisor Maina unknown to the respondent, and the claimant could not benefit from that illegality; the wrong party was sued. Lacking proof of employment and unfair termination, the court held it lacked jurisdiction and struck out the suit, with each party bearing its own costs. Judgment was delivered electronically on 12th June 2020 in line with COVID-19 court-operations directions.

Questions the Court framed

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

  1. 1.Whether an employment relationship existed between the claimant and the respondent
  2. 2.Whether the claimant strictly proved his employment with the respondent so as to found the court's jurisdiction
  3. 3.Whether the claimant's employment, if any, was unfairly terminated without payment of terminal dues

Key legal issues

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01

Whether the claimant proved an employment relationship with the respondent

Holding

The claimant failed to strictly prove employment; his details did not appear in the respondent's unchallenged work records filed under section 10(6) and (7) of the Employment Act, 2007, and his pleadings and evidence contained contradictory dates of employment

Reasoning

The respondent denied ever employing the claimant and filed detailed muster roll and clocking card records as required under section 10(6) and (7) of the Employment Act, 2007. These records were not challenged by the claimant and his name did not appear in them. The claimant's pleading asserted employment from March 2013 to June 2014 while his evidence asserted October 2010 to February 2014, creating apparent disparities that undermined his case.

p. 2
02

Whether the claimant could claim work benefits through a parallel system operated by a supervisor taking bribes

Holding

Any engagement the claimant had was under a parallel informal system devised by supervisor Mr Maina, sustained by bribes, unknown to the respondent; the claimant cannot benefit from that illegality and the wrong party was sued

Reasoning

The claimant testified that he bribed supervisor Nahashon Maina to be picked at the gate and had no NSSF or benefits like other employees. The court found the respondent's system registers all casuals at the gate with NSSF dues paid, and that rogue supervisors had devised a parallel system unknown to the respondent. Any service the claimant rendered was through Maina's agency, making the supervisor the proper party.

p. 2
03

Whether the court had jurisdiction in the absence of proof of employment and unfair termination

Holding

Without proof of employment and unfair termination the court lacks jurisdiction and must down its tools; the suit was struck out

Reasoning

The court framed proof of the employment relationship as a jurisdictional fact. Since the claimant failed strict proof, the court could not hear the dispute on terminal dues, underpayments, leave, overtime, notice, severance and compensation. The suit was therefore struck out rather than dismissed after a full merits determination.

p. 2

Legal principles established

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  • Where an employment claim is denied, particularly on the existence of an employment relationship, the claimant bears strict proof of employment; without it the court lacks jurisdiction
  • A party cannot benefit from an illegality committed with his own assistance

Court orders

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  1. 1.The suit is struck out
  2. 2.Each party shall bear 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 Court's core mandate over disputes relating to employment and labour relations; employment relationship as a jurisdictional fact

Relief refused

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Underpayments from October 2010 to February 2014 (Ksh.69,313.44)

No proof of employment relationship with the respondent; claims without foundation

p. 2

Leave pay Ksh.8,379; overtime pay Ksh.14,928.74; notice pay Ksh.9,780.95; severance pay Ksh.192,687.82; compensation

Court lacked jurisdiction without proof of employment and unfair termination; claimant cannot benefit from illegality committed with his assistance

p. 2

Costs

Each party to bear own costs

p. 2

Costs

Each party shall bear 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.

The claimant as the employee was put to strict proof of his employment with the respondent. without proof of such matter, then the court lacks the requisite jurisdiction to hear and determine the dispute between the parties.
p. 2strict proof of employment as a jurisdictional fact
The claimant cannot benefit from an illegality committed with his assistance to claim work benefits from the respondent.
p. 2illegality
Without proof of employment and that there was unfair termination of such employment, the court lacks jurisdiction herein and must down its tools.
p. 2jurisdiction
The suit is hereby struck out. Each party shall bear own costs.
p. 2final orders

Issues in the judgment

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minor

The claim/relief sought states underpayments from October 2010 to February 2014 while the pleaded employment period is March 2013 to June 2014 - internal inconsistency noted by the court itself

minor

Judgment contains typographical errors (e.g. 'causal' for 'casual', 'respondn4t', 'particularly' rendered as 'particularly')

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, "Peter Waithaka Muriithi v Timsales Company Limited [2020] KEELRC 890 (KLR)", Case Analysis (2020). Cause No. 78 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/890/eng@2020-06-12

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