Owuor v Rea Vipingo Plantations Ltd (Cause 529 of 2018) [2022] KEELRC 1452 (KLR) (9 June 2022) (Judgment)

Kenya Law

Automated Summary

Key Facts

The claimant, Godfrey Otieno Owuor, was employed by Rea Vipingo Plantations Ltd as a piece-rate worker from February 2015 to October 2016. His pay varied monthly based on work completed, and he was not issued a contract or leave entitlements. The respondent terminated his piece-rate engagement without providing the 28-day notice required by the Employment Act, rendering the termination procedurally unfair. The court awarded the claimant Ksh 10,800 for one month's notice in lieu and Ksh 64,800 as compensation for unfair termination, totaling Ksh 75,600.

Issues

  • Whether the claimant was terminated by the Respondent
  • Whether the claimant is entitled to the reliefs sought
  • Whether the claimant was a casual or piece-rated employee

Holdings

  • The court found that the termination of the claimant's piece-rate employment was procedurally unfair due to the lack of a 28-day notice, as required by the Employment Act. Consequently, the claimant was awarded Ksh.10,800 as one month's salary in lieu of notice.
  • The claim for severance pay was denied because the termination was not based on redundancy, as the claimant was a piece-rate employee and not entitled to severance under the circumstances.
  • The claim for accumulated leave was rejected since piece-rate employees are not entitled to such benefits under the Employment Act, as the claimant did not work under a contract of employment.
  • The court awarded six months' salary (Ksh.64,800) as compensation for the unfair termination of employment, citing procedural unfairness due to the absence of a 28-day notice period.

Remedies

  • Awarded one month's salary (Ksh.10,800) in lieu of notice due to procedural unfairness in termination.
  • The claimant was awarded the costs of the suit and interest.
  • Compensation of six months' salary (Ksh.64,800) for unfair termination, as the respondent failed to provide a 28-day notice.

Monetary Damages

75600.00

Legal Principles

The court relied on the Employment Act 2007, particularly Section 45, which requires the employer to demonstrate the fairness of termination reasons when an employee alleges unfair dismissal. This shifted the evidential burden to the respondent, who failed to provide sufficient notice or justification for ending the claimant's piece-rate employment, leading to a finding of procedural unfairness.

Precedent Name

Krystalline Salt -vs- Kwekwe Mwakele & 67 others

Cited Statute

Employment Act 2007

Judge Name

AGNES KITIKU NZEI

Passage Text

  • The respondent did not, however, demonstrate that it gave a 28 days' notice to the claimants before termination of the piece rate engagement... This made the process of severing the piece-rate engagement... procedurally unfair.
  • Consequently... judgment is hereby entered for the claimant against the respondent as follows: a) one month salary in lieu of notice... b) six months' salary being compensation for unfair termination... Total ksh.75,600
  • I find and hold that the claimant was a piece-rate employee.