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ELRCPartially AllowedCause No 26 of 2013· [2014] KEELRC 1056 (KLR)

Donald Oricho v National Vision Party & 2 others [2014] KEELRC 1056 (KLR)

Industrial Court of Kenya
17 June 2014
LNLINNET NDOLO
1,469 words in judgment
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The bottom line

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What this practically means

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Executive summary

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The Claimant sued the National Vision Party and two of its officials, Nicholas K. Biwott and Benter Akinyi Opande, for unpaid salary under a letter of appointment dated 23rd January 2012 engaging him for five years as manager of the party's Nairobi County Office at Kshs. 18,000 per month. The 1st and 2nd Respondents denied the employment relationship and the authority of the 3rd Respondent, the county chairperson, to issue the appointment letter, contending that hiring authority lay with the National Executive Council. The 3rd Respondent admitted authoring the letter, relying on a 7th February 2012 meeting authorising interim chairmen to recruit minimal office staff. The Court held that a reasonable-person test governs: an employee dealing with a senior official of an organisation need not verify internal authority, and internal operations inaccessible to a claimant cannot be used to deny an employment relationship. A valid employment relationship with the 1st Respondent was found, and any excess of authority by the 3rd Respondent was a matter against her, not the Claimant. On reliefs, the Court awarded Kshs. 106,000 for salary arrears (February-August 2012, less Kshs. 20,000 paid by the 2nd Respondent) and Kshs. 72,000 for September-December 2012 when the office closed, totalling Kshs. 178,000, with interest at court rates from the date of the award. Pay for the remainder of the contract, being in the nature of specific performance, was refused. The award was made against all three Respondents jointly and severally, with costs to the Claimant.

Key legal issues

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01

Existence of a valid employment relationship despite disputed hiring authority

Holding

A valid employment relationship existed between the Claimant and the 1st Respondent notwithstanding the alleged lack of authority of the recruiting official

Reasoning

The Claimant was recruited by the 3rd Respondent, a very senior party official, and had no reason to doubt the authenticity of the appointment letter. The court applies an objective test: whether a reasonable person would believe the person offering employment could commit the organisation. Internal authority limits inaccessible to the employee cannot defeat the relationship; any excess of authority is a matter between the organisation and the official.

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02

Entitlement to salary arrears and pay for the remainder of the contract

Holding

Salary arrears awarded up to closure of the office in December 2012; pay for the remainder of the contract refused

Reasoning

The Claimant proved non-payment of salary save Kshs. 20,000 paid by the 2nd Respondent. The Nairobi County office closed in December 2012, so no work was performed beyond that date. Pay for the unexpired contract term amounts to specific performance, unavailable absent exceptional circumstances. Total award of Kshs. 178,000 made jointly and severally against all three Respondents, who ran the party as a personal venture.

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Legal principles established

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  • An employment relationship is assessed objectively from the perspective of a reasonable person dealing with the organisation, not from internal authority arrangements unknown to the employee
  • An employee dealing with a senior official need not verify within the corporate boardroom that the official had authority to hire
  • If an official exceeded their powers in hiring, the recourse lies against the official, not the innocent employee
  • An order for pay for the remainder of a contract is in the nature of specific performance, granted only in exceptional circumstances

Court orders

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  1. 1.Award of Kshs. 106,000 being salary for February-August 2012 less Kshs. 20,000 paid
  2. 2.Award of Kshs. 72,000 being salary for September-December 2012
  3. 3.Total award of Kshs. 178,000 against the 1st, 2nd and 3rd Respondents jointly and severally
  4. 4.Interest on the award at court rates from the date of the award until payment in full
  5. 5.Costs of the case awarded to the Claimant

Authorities

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Legislation

  • Constitution of Kenya2010
  • Political Parties Act

Cases cited (1)

  • Michael Mwalo Vs Board of Trustees National Social Security Fund
    Cause No 1093 of 2012
Jurisdiction invoked
Employment and labour relations dispute under Article 162(2) of the Constitution (Industrial Court of Kenya, Cause No 26 of 2013)

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, "Donald Oricho v National Vision Party & 2 others [2014] KEELRC 1056 (KLR)", Case Analysis (2014). Cause No 26 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1056/eng@2014-06-17

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