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ELRCAllowedNot stated in the judgment· [2022] KEELRC 253 (KLR)

Benson Musyoki Muthengi v Dimamu Agencies Limited [2022] KEELRC 253 (KLR)

Employment and Labour Relations Court
21 April 2022
668 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~3 min to read original · ~4 min brief

The bottom line

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A Kenyan employer that sacks a worker without notice or a hearing, and stays away from court, will pay compensation, full dues, interest and costs.

What this practically means

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Executive summary

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The claimant, employed as a loader on 14th March 2015 at a monthly salary of Kshs 10,660, sued for unlawful and unfair dismissal. He testified that on 24th March 2016 he was accused of loading a truck with excess goods and of theft by Mr Deepark and Mr Ocampo and was told to leave the company for good. No report was made to the police, and he received no notice, show-cause letter or hearing. He claimed one month's salary in lieu of notice, leave pay, service pay, payment for public holidays worked, underpayments and off days, plus compensation for unfair dismissal. The suit was undefended and proceeded to formal proof before Mathews N. Nduma, J. The court held that once the claimant adduced evidence of wrongful dismissal under Section 47(5) of the Employment Act, the burden shifted to the respondent to prove a valid reason under Section 43; in an undefended matter the respondent failed to discharge that onus. The court found the respondent did not satisfy Sections 36, 41, 43 and 45, having dismissed the claimant without notice or a hearing, and held the dismissal unlawful and unfair. Following Mary Chemweno Kiptui v Kenya Pipeline (2014) eKLR, it awarded three months' salary (Kshs 31,980) as compensation, plus notice pay, leave, service pay, public holiday pay, underpayments and off days, totalling Kshs 90,315.80, with interest at court rates and costs of the suit. Judgment was delivered online pursuant to COVID-19 directives. Note: the disposition erroneously states judgment was entered in favour of the Respondent.

Key legal issues

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01

Lawfulness and fairness of the dismissal

Holding

The dismissal was unlawful and unfair as the respondent did not satisfy Sections 36, 41, 43 and 45 of the Employment Act, having dismissed the claimant without notice, a show-cause notice or a hearing

Reasoning

The claimant testified he was accused of theft when loading a truck and asked to leave for good at midday on 24th March 2016. No report was made to the police. The suit was undefended and proceeded to formal proof, so the respondent adduced no evidence. The burden having shifted under Section 47(5), the respondent failed to discharge it, and the procedural requirements of notice and hearing were not met.

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02

Quantum of compensation for unfair dismissal

Holding

The court awarded the equivalent of three months' salary, Kshs 31,980, following Mary Chemweno Kiptui v Kenya Pipeline (2014) eKLR, considering one year of service and non-payment of terminal benefits

Reasoning

Section 49(1)(c) and (4) empowers the court to award compensation. The claimant had served one year, was not paid terminal benefits and suffered loss and damages. Following the Kiptui authority cited, three months' salary at Kshs 10,660 per month was deemed appropriate in the circumstances of this undefended claim.

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Legal principles established

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  • Once an employee adduces evidence of wrongful dismissal under Section 47(5), the burden shifts to the employer to prove a valid reason for dismissal under Sections 43(1) and (2) read with 47(5)
  • In an undefended suit the employer fails to discharge the onus of justifying dismissal

Court orders

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  1. 1.Kshs 31,980 in compensation for unlawful and unfair dismissal
  2. 2.Kshs 10,660 notice pay
  3. 3.Kshs 8,610 in lieu of leave
  4. 4.Kshs 6,150 service pay
  5. 5.Kshs 8,200 for public holidays worked
  6. 6.Kshs 24,519 underpayments
  7. 7.Kshs 196.80 off-days
  8. 8.Total award of Kshs 90,315.80 with interest at court rates from date of judgment till payment in full
  9. 9.Costs of the suit to the claimant
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act; judgment delivered online pursuant to Article 159(2)(d) and Article 48 of the Constitution and Section 18 of the Civil Procedure 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, "Benson Musyoki Muthengi v Dimamu Agencies Limited [2022] KEELRC 253 (KLR)", Case Analysis (2022). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/253/eng@2022-04-21

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