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ELRCAllowedCause No 1882 of 2011· [2015] KEELRC 1423 (KLR)

Stanley Nguli Muli & 4others v Zenith Media Services Ltd [2015] KEELRC 1423 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
27 February 2015
ANAbuodha J. N.
482 words in judgment
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The bottom line

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An employer who ignores a Kenya Employment Court case risks an automatic loss, with workers awarded full terminal dues and six months' pay.

What this practically means

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Executive summary

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This was an undefended employment claim before the Industrial Court at Nairobi in which five former employees of the respondent - Stanley Nguli Muli, Livingstone Musyoka Musamali, Jonah Mwendwa Mutisya, Alice Ikamati and Mercy Waliaula - sought payment of terminal dues following termination of their services on 30th April 2011. The respondent, though served, neither entered appearance nor filed a memorandum of response. On 15th December 2014 the court directed that the matter proceed as an undefended cause, with the claimants at liberty to file submissions on the documents filed. Counsel for the claimants submitted that termination is unfair where the employer fails to prove that the reasons for termination are valid, and that the respondent had adduced no evidence of fairness. The court accepted the claimants' unchallenged averments and found the termination unfair and wrongful. It awarded each claimant the sums tabulated in the memorandum of claim: salary arrears for three months, severance pay in lieu of redundancy (where claimed), six months' salary as damages for unfair termination, bonus (where claimed) and, for Alice Ikamati, costs incurred. The awards totalled Kshs. 1,131,121.00, apportioned as Kshs. 515,477.00, 237,415.00, 297,569.00, 90,660.00 and 90,000.00 respectively. Judgment was dated and delivered at Nairobi on 27th February 2015 by Abuodha J. No costs order was recorded.

Key legal issues

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01

Fairness of termination in an undefended cause

Holding

The termination of the claimants' services was unfair and wrongful because the respondent, though served, entered no appearance and put forward no evidence proving valid reasons for termination

Reasoning

The claimants pleaded that their services were terminated on 30th April 2011 without payment of terminal dues. The respondent was served but neither entered appearance nor filed a memorandum of response, so the matter proceeded as an undefended cause. Counsel relied on the principle that termination is unfair where the employer fails to prove valid reasons. In the absence of any challenge, the claimants' averments remained unchallenged and were accepted, with compensation awarded as tabulated.

p. 1

Legal principles established

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  • Where an employer fails to appear and adduce evidence, the claimant's unchallenged averments are taken as proof, and termination without proof of valid reasons is unfair

Court orders

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  1. 1.The respondent to pay Stanley Nguli Muli Kshs. 515,477.00 being salary arrears, severance pay, six months' salary as damages for unfair termination and bonus
  2. 2.The respondent to pay Livingstone Musyoka Musamali Kshs. 237,415.00 being salary arrears, severance pay, six months' salary and bonus
  3. 3.The respondent to pay Jonah Mwendwa Mutisya Kshs. 297,569.00 being salary arrears, severance pay, six months' salary and bonus
  4. 4.The respondent to pay Alice Ikamati Kshs. 90,660.00 being salary arrears, six months' salary and costs incurred
  5. 5.The respondent to pay Mercy Waliaula Kshs. 90,000.00 being salary arrears and six months' salary
  6. 6.Total award of Kshs. 1,131,121.00 in favour of the claimants
Jurisdiction invoked
Not expressly stated; the court exercised its jurisdiction over employment and labour relations claims for terminal dues and compensation for unfair termination

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, "Stanley Nguli Muli & 4others v Zenith Media Services Ltd [2015] KEELRC 1423 (KLR)", Case Analysis (2015). Cause No 1882 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1423/eng@2015-02-27

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