Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No. 332 of 2014· [2015] KEELRC 233 (KLR)

Kenya Hotels & Allied Workers Union v Firm Rock Resort (Lakers Hub) [2015] KEELRC 233 (KLR)

Employment & Labour Relations Court at Kisumu
20 November 2015
1,174 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled a hotel unfairly fired its supervisor by sidelining him into commission-only work without following the law, awarding him over Shs.190,000.

What this practically means

#

Executive summary

#
The Kenya Hotels and Allied Workers Union claimed on behalf of its member, Joseph Otieno Ariya, a housekeeping and laundry supervisor employed by the Respondent on a three-year fixed-term contract from 1st June 2011 at Shs.15,000 per month. He alleged his salary was unlawfully reduced to Shs.10,000 in July 2012, that he was sent on compulsory leave in January 2013 following a disagreement with a colleague, and that when no decision was ever communicated he was offered employment as a commission salesman without salary, amounting to termination. A meeting on 4th September 2013 saw the Respondent agree to pay terminal dues but fail to do so, leading to conciliation and this suit. The Respondent filed a defence through advocates but did not attend the hearing, which proceeded after the court confirmed the date was fixed by consent. The court found the defence to be a mere denial unsupported by evidence, and held the termination unfair for want of both valid reason and fair procedure under Sections 41 and 49 of the Employment Act. Reinstatement was treated as abandoned for want of evidence. The court awarded one month's salary in lieu of notice (Shs.15,000), public holidays (Shs.7,500), 104 off days (Shs.52,000), salary arrears (Shs.60,000) and compensation of four months' salary (Shs.60,000), directed issuance of a certificate of service, and awarded costs of Shs.20,000.

Key legal issues

#
01

Fairness of termination

Holding

Termination was unfair for want of both valid reason and fair procedure, as the Grievant was never subjected to the Section 41 procedure before being offered a new commission-based role

Reasoning

The Grievant was sent on one month's compulsory leave pending a directors' meeting which never concluded. On resuming, he was told to wait and was later offered fresh employment as a salesman on commission without salary, which meant his previous employment had been terminated. The Respondent, whose defence was a mere denial, adduced no evidence to controvert the Grievant's testimony, so the court believed the Grievant.

p. 3
02

Entitlement to terminal dues and compensation

Holding

Grievant entitled to one month's salary in lieu of notice, public holidays, off days, salary arrears, salary for compulsory leave period, untaken annual leave and compensation of four months' salary

Reasoning

The Respondent did not appear at the hearing nor adduce evidence to controvert the Grievant's claim that he worked on off days and public holidays. In assessing compensation under Section 49, the court considered the Grievant's two years of service and the circumstances of termination, fixing compensation at four months' salary rather than the twelve months claimed.

p. 3

Legal principles established

#
  • For a termination to be fair, the employer must prove both a valid reason and fair procedure
  • An employee unfairly terminated is entitled to the remedies set out in Section 49 of the Employment Act, including salary in lieu of notice, withheld salary, salary for periods of compulsory leave, untaken annual leave and compensation

Court orders

#
  1. 1.Payment of one month's salary in lieu of notice of Shs.15,000.00
  2. 2.Payment for public holidays of Shs.7,500.00
  3. 3.Payment for 104 off days of Shs.52,000.00
  4. 4.Payment of salary arrears of Shs.60,000.00
  5. 5.Compensation of 4 months' salary of Shs.60,000.00 for unfair termination
  6. 6.Respondent to issue the Claimant a Certificate of Service
  7. 7.Costs of Shs.20,000/= awarded to the Claimant

Authorities

#

Legislation

  • Employment ActSection 41
  • Employment ActSection 49
  • Employment Act2007
Jurisdiction invoked
Employment Act, 2007 (employment and labour relations dispute; referral after conciliation by the Minister for Labour)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Kenya Hotels & Allied Workers Union v Firm Rock Resort (Lakers Hub) [2015] KEELRC 233 (KLR)", Case Analysis (2015). Cause No. 332 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/233/eng@2015-11-20

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