STRATHMORE UNIVERSITY BUSINESS SCHOOL

BACHELOR OF COMMERCE
END OF SEMESTER EXAMINATION
BHR 4101: EMPLOYEE RELATIONS MANAGEMENT

DATE: Thursday, 9th September 2021 TIME: [13:00] 2 Hours

INSTRUCTIONS
ANSWER QUESTION ONE AND QUESTION TWO
ANSWER ANY OTHER TWO QUESTIONS

Question 1 (Compulsory)
1. It is difficult to apply the control test to skilled professionals because;
A. They control all the aspects of their employment.
B. The control test only applies to those who will suffer loss in case a business does not succeed.
C. Skilled professionals work on part time basis only.
D. The employer may control very little of the actual work that is done by a skilled professional.

2. The following question is not relevant when the Economic Reality Test is under consideration;
A. Does the worker have helpers who are under his direction?
B. Is the worker able to work from home?
C. Is the worker running a separate business of his own?
D. Has the worker taken on any financial risk?

3. Which of the following is not true about an employees’ right to association. (pick two)
A. An employee has a right to join a trade union as they see fit.
B. An employee has a right to join a trade union chosen by the employer.
C. An employee has a right to leave a trade union.
D. An employer has the right to fire an employee who joins a union.

4. In Tierney vs An Post the Court of Appeal held that Mr Tierney was under a contract for services
because;
A. The main post office was far away.
B. He had an assitant.
C. The main post office had the final say in who could become his assistant.
D. It was not normal for a full time employee to be invovled in the entire process of hiring his
own assistant.

5. Which of the following is true about establishing a trade union.

A. A certificate from the Registrar of trade unions is necessary before a trade union starts
recruiting members.
B. The application for registration must be signed by 50 registered members.
C. The registrar issues a certificate within one year of receiving the application.
D. The name of the trade union need not be specified in the application.

Page 1 of 4
6. If A is exposed to financial risk or loss, then A;
A. Is a casual employee.
B. Is a full-time employee.
C. Is under a contract for services.
D. Has been employed for less than one month.

7. A casual employee is characterized by;

A. Daily payments and a working period not longer than a day.
B. Monthly payments and a working period not longer than a month.
C. Weekly payments and a working period not longer than a week.
D. Periods of work that are longer than three months.

8. Which of the following is not true about members of Trade Unions;

A. An employee who is below 18 years of age can be a member of a trade union.
B. An employee who is below 16 years of age cannot be a member of a trade union.
C. An employee below 18 years can be a member of the executive of the trade union.
D. No person shall be a voting member unless he is employed under the sector the union
represents.

9. Casual employment may be converted to a term contract;

A. If the work will take more than two weeks.
B. If the work cannot be completed in less than three months.
C. If the worker is protected by vicarious liability.
D. If the work is performed with the employer’s equipment.

10. A casual employee may be dismissed;

A. At the end of the day without notice.
B. After being given two days’ notice.
C. After being issued with a warning letter.
D. With one month’s salary in lieu of notice.

11. Which of the following is not true about the funds of a Trade Union;
A. They should be used to pay salaries
B. They should be used to conduct trade disputes.
C. They should be used to pay any legal fees.
D. They should be used to pay school fees for member’s children upon request.

12. If a casual employee works for two or more months continuously;

A. He can apply to become an independent contractor.
B. He can be fired without notice.
C. He shall be entitled to terms and conditions as if he was initially employed on a term contract.
D. He shall receive double the salary he earned in the first month.

13. Onyago was employed as a casual worker in Odipo’s firm on the 1st of February 2019. He was paid
on a daily basis. Onyango worked there continuously until the 5th of May 2019 when he was suddenly
fired with no explanation. Onyago has a right to sue Odipo for a number of reasons. Which of the
following is not a reason for Onyango to sue;

Page 2 of 4
 A. He had the right to be given 28 days’ notice before being fired.
B. He was entitled to all the terms and conditions that applied to any full term employees in
Odipo’s firm.
C. He was entitled to an explanation for his termination.
D. He was entitled to 21 days paid leave.

14. Lit Express Ltd is a publishing house that writes, edits, prints and supplies a daily newspaper called
Lit Express Daily. Timothy and Kamau are hired to distribute and sell the newspaper. They are paid a
commission which depends on the number of newspapers they sell. They are paid on a daily basis and
have been supplying the newspapers for the last three years. They use their own vans and motorcycles
to supply the newspapers. Timothy has five assistants and Kamau has ten assistants. Timothy and
Kamau are;
A. Independent Contractors.
B. Casual Employees.
C. Part-Time Employees.
D. Full-Time Employees.

15. ‘Certain rights and duties are implied into the contract of employment’. This means that;
A. The contract of employment has rights and duties which are beyond the law
B. The contract of employment is not governed by the Employment Act
C. An employer has certain rights which are not clear.
D. Certain rights and duties will automatically be read into any contract of employment even
where they are not stated in the contract.
(Total 15 Marks)
Question 2 (Compulsory)
Brenda owns a saloon in Nairobi known as Beautilicious Saloon. She wants to open a branch of
the saloon in Kisumu. Kevin runs a saloon in Kisumu called Bella Saloon. Brenda approaches
Kevin and they agree as follows;
 Kevin will rent a space to Brenda in Bella Saloon and in that space, Brenda will open a
branch of Beautilicious Saloon. This branch will be known as Beautilicious Saloon B.
 Kevin will be employed by Brenda to run Beautilicious Saloon B.
 Kevin will carry out interviews and employ assistants to help him run Beautilicious Saloon
B.
 Kevin will not employ any assistant who Brenda has not approved.
Brenda has a medical insurance policy that covers injuries to employees who are injured while
working in any of her saloons. The policy covers only those employees who are under a contract
of service. Kevin gets seriously injured while boiling water to wash a customer in Beautilicious
Saloon B. Brenda refuses to cover Kevin’s medical expenses claiming that Kevin is not an
employee. Advice Kevin. (Total 15
Marks)

Question 3

a) Christine was employed by Mifflin Paper Company as a sales person. The company was in the
business of producing, selling and distributing photocopying paper. The company sold
photocopying paper in rims. Each rim contained 500 sheets of paper. Christine’s contract of
employment stated that she was entitled to three months’ maternity leave. Her salary was also set
at Kshs. 40,000 a month. In addition to this she was entitled to a commission of Kshs. 5,000 for
every 40 rims of paper she sold. In her fifth year in the company, Christine got married. Soon after

Page 3 of 4
 she got married, she got pregnant. As soon as the management of the company realised Christine
was pregnant, it unilaterally changed the terms of her employment to the following;
 Christine was entitled to only one month’s maternity leave.
 Christine’s salary would now be Kshs. 20,000 a month.
 Christine’s commission would be Kshs. 2,000 for every 70 rims of paper she sold.
Christine is aggrieved by these unilateral changes made to her contract by her employer. Advise
her.
(10 Marks)

b) Trufosa is a bank teller at Cheques Bank Limited. She receives an average of Kshs 2,000,000 per
day at her counter. She has learnt how to doctor her accounts at the counter such that she steals at
least Kshs. 300,000 every week. Her boss, Mr. Mulika discovers this and estimates that in the
course of her employment, Trufosa has stolen a total of Kshs. 30,000,000 from the bank. Mr.
Mulika seeks your advice on the procedure to use whilst dismissing Trufosa. (10 Marks)

(TOTAL 20 MARKS)
Question 4
a) Maina works for 3-Pac Transporters Company Ltd as a driver. He has worked in the company for 10
years. At the beginning of his eleventh year, he got into a bad road accident and applied for sick off.
He was away from work for 200 days. At the time of the accident he was earning a total of Kshs.
40,000 a month and he was a permanent employee.
i. What is the total amount of money the company should have paid him during his 200 days sick
off? Explain how you have arrived at this figure.
(10 Marks)

ii. What is the maximum number of days Maina was legally entitled to be on sick off at the time
of his accident. (5 Marks)

b) ‘Whereas the ADR mechanisms are lauded as having advantages, there is still a school of thought that
is completely against them.’ Briefly explain this statement. (5 Marks)
(TOTAL 20 MARKS)

Question 5
a) Nancy is the Human Resource Manager of By The Beach Hotel. The government has directed that
all hotels be closed down due to the Covid-19 pandemic. The hotel has 50 employees. 10 have
worked in the company for 20 years, 10 have worked for 15 years and the other 30 have worked
for 5 to 10 years. Nancy has decided to make the employees redundant. Explain to her in detail
what procedure she should follow in order to carry out the redundancy in a lawful manner.
(10 Marks)

b) State and explain the three procedural requirements for a strike to be legal and protected in Kenya.
(10 Marks)

(TOTAL 20 MARKS)

Page 4 of 4