Pooroosotum Bheekhoo v Linksoft Group [2015] KEELRC 191 (KLR)
The bottom line
#A Kenyan court ordered an employer to pay a former executive over $170,000 in unpaid salary and benefits, ruling that claims of poor performance must be proven with real performance management.
What this practically means
#Executive summary
#Key legal issues
#Identity of the employer
The Respondent (Linksoft Group) was a proper party and the employer notwithstanding that the contract referenced Linksoft International Mauritius Ltd, since the group umbrella could not be extricated from the employment
The court examined the contract drawn under the banner of Linksoft Group, the work permit, school fees invoices and communications all issued under Linksoft Group. The respondent's own witness confirmed the group structure with multiple entities. Separating the Respondent from the contracting entity to deny responsibility would amount to an unfair labour practice. Section 13 of the Employment Act places the duty to effect changes in contract particulars on the employer, not the employee.
Whether the defence of poor performance could justify non-payment of salary and variable pay
No - the employer failed to appraise, set targets or address performance concerns during employment; the poor performance defence was an afterthought and the non-payment was an unfair labour practice and breach of contract
Once an employee is confirmed after probation, the employer is taken to have assessed and appreciated the employee's competence. An employer alleging poor performance must prove it, showing standards, support and time to improve. Here there was no record of assessment by the CEO, no warnings, and no written KPIs after the role change. The witness admitted external factors caused losses and could not attribute them to the claimant. Varying contract terms to deny variable pay on poor performance and low finances was unacceptable.
Whether the notice period was reduced to one month by agreement
No - the alleged reduction of the notice period was not consented to in writing by the claimant; the ambiguity benefits the claimant, so salaries were computed at 7 months not 5
The claimant gave 3 months' notice ending 31st December 2012 per his contract. The respondent's letter of 1st November 2012 asserting an earlier exit was not acknowledged by the claimant. Where an essential term changes, mutual written consent is required under section 13 of the Employment Act. The mistake of failing to reduce any agreement into writing should not be visited upon the claimant; he offered to serve his notice and should be paid for it.
Benefits: rent and school fees
Rent arrears up to 31st December 2012 were due as an unqualified contractual benefit; the school fees cap of Kshs.300,000 per child was unsupported by any policy, but the school fees claim itself failed as the fees were already paid in full
The contract provided company house and children's education as open benefits with no conditions. No policy limiting school fees was attached to the contract or brought to the claimant's attention. Rent paid by the claimant in cash or personal effects should be reimbursed. However, the court found from the claimant's own annexures that school fees were fully paid by 25th September 2013, so awarding $19,179 would be double payment, though costs were awarded due to the delay in payment.
Interest on the dues
Interest at court rates was awarded from 31st December 2012 (last day of employment) until payment in full
The respondent admitted owing salaries and retained the dues while blaming the claimant for poor performance, which the court found to be an unfair labour practice. The offer to pay in instalments was rejected and the respondent sat back and waited, frustrating the former employee. The claimant was paid by direct bank deposit in USD, and since he left Kenya with his work permit cancelled, the dues were to be paid in United States Dollars.
Unpleaded claims for constructive dismissal and moral damages
The claims failed as they were not pleaded; pleadings must define the case so the other party is not ambushed
Though the claimant testified he was forced to resign and suffered moral damage including his father's death, these heads were not in the memorandum of claim. The court noted the absence of the omnibus prayer under section 12(3)(viii) of the Employment and Labour Relations Court Act which would have invited the court's discretion. The court applied authorities on the fatal effect of unpleaded claims.
Legal principles established
#- An employer alleging poor performance bears the burden of proving it, including demonstration of performance standards, support and opportunity to improve
- The duty to set policy guidelines, measurable targets and performance indicators is upon the employer
- Changes to essential terms of a contract of employment require mutual written consent and cannot be unilateral
- Benefits under a contract without attached conditions come as given; an employer cannot impose unstated policy limits after the fact
- A claim against a claimant must be raised by way of counterclaim to be awardable
Court orders
#- 1.Judgment entered for the Claimant against the Respondent
- 2.Award of 13 days leave at $7,583.00
- 3.Award of 7 months' salary $98,000.00
- 4.Award of annual variable (performance linked pay target) for 5 quarters $30,240.00
- 5.Award of annual variable (performance link) pay for 5 quarters $37,800.00
- 6.Award of house rent $6,297.07
- 7.Interest at court rates on the awarded amounts from 31st December 2012 until payment in full
- 8.All amounts subject to statutory deductions under section 49(2) of the Employment Act
- 9.Payment to be made in United States Dollars
- 10.Claimant awarded costs of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court Act, section 12; Employment Act
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (3)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Ahuta v Associated Construction Co (K) Ltd (Cause 1311 of 2018) [2025] KEELRC 1373 (KLR)[2025] KEELRC 1373 (KLR)5 May 2025applied
- Tisar Limited v Musyoka (Appeal E038 of 2022) [2025] KEELRC 1351 (KLR)[2025] KEELRC 1351 (KLR)5 May 2025applied
- Kenny Kinako v Ringier Kenya Limited [2016] KEELRC 1229 (KLR)[2016] KEELRC 1229 (KLR)7 Apr 2016applied
Cite this brief
#Cite this brief
Caselaw, "Pooroosotum Bheekhoo v Linksoft Group [2015] KEELRC 191 (KLR)", Case Analysis (2015). Cause No. 1232 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/191/eng@2015-10-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.