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ELRCDismissedCause No 2184 of 2015· [2016] KEELRC 48 (KLR)

Praxides Akoth Oduor v Liberty Eagle Liomited & another [2016] KEELRC 48 (KLR)

Employment and Labour Relations Court
22 September 2016
1,880 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court refused to remove People Insights Limited from an unfair dismissal case because companies involved in workplace decisions can be sued even without a written employment contract.

What this practically means

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Executive summary

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The 2nd Respondent, People Insights Limited, brought a Notice of Motion dated 15th February 2016 seeking to have its name struck out from the Claimant's employment claim on the grounds that there was no employer-employee relationship or privity of contract between it and the Claimant, who had been employed and dismissed by the 1st Respondent. The application was supported by the affidavit of Anne Pondo, the 2nd Respondent's administrator. The Claimant opposed, relying on the court's duty under section 20 of the Employment and Labour Relations Court Act to disapply technicalities, and cited Kizito M Lubano on joinder of necessary parties. The 1st Respondent did not oppose the application. The court held that it had jurisdiction under Articles 41 and 162 of the Constitution and the Employment and Labour Relations Court Act, and that the employment relationship is regulated not only by contract but also by policies and guidelines, rendering the alleged links matters of evidence unsuitable for determination on a striking-out application. Examining the record, the court noted that the emails summoning the Claimant to the disciplinary hearing and on clearance procedure were sent by Anne Pondo of the 2nd Respondent, upon which the 1st Respondent relied in summarily dismissing the Claimant. It found a close agency relationship between the Respondents, held the 2nd Respondent to be a necessary party, and distinguished the Chemelil Sugar case on the facts. The application was dismissed with costs in the cause.

Key legal issues

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01

Whether the 2nd Respondent is a necessary party despite absence of a written employment contract

Holding

The application to strike out the 2nd Respondent was dismissed because the 2nd Respondent's officer issued key communications touching on the Claimant's employment and the disciplinary process relied on by the 1st Respondent in dismissing the Claimant

Reasoning

The court found emails summoning the Claimant to a disciplinary hearing and on clearance procedure were sent by Anne Pondo of the 2nd Respondent, upon which the 1st Respondent relied to dismiss her. The employment relationship is regulated not only by contract but by policies and guidelines, making these evidentiary matters unsuitable for determination on a striking-out application. Removing the 2nd Respondent would deprive the court of crucial evidence and cause injustice to the Claimant.

p. 3
02

Jurisdiction of the Court over employment disputes

Holding

The Court has jurisdiction over employment and labour relations claims under Articles 41 and 162 of the Constitution read with the Employment and Labour Relations Court Act

Reasoning

The court affirmed its jurisdiction under article 41 and 162 of the Constitution as read with the Employment and Labour Relations Court Act, and noted section 20 of that Act obliges it to proceed without undue regard to technicalities, favouring substantive adjudication of the dispute over procedural objections on joinder.

p. 3

Legal principles established

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  • A party may be joined to a suit not only where a cause of action lies against it but where its presence is necessary for the court to effectually and completely adjudicate on all questions involved
  • The employment relationship extends beyond the written contract to policies, regulations and guidelines applicable to employees

Court orders

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  1. 1.The application dated 15th February 2016 is dismissed
  2. 2.Costs shall be in the cause

Authorities

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Legislation

  • Employment Actsection 2
  • Employment Actsection 13
  • Employment and Labour Relations Court Actsection 12
  • Employment and Labour Relations Court Actsection 20
  • Constitution of KenyaArticles 41 and 162

Cases cited (6)

  • Kenya Union of Post Primary Education Teachers [KUPPET] versus Techers Service Commission & Another
    [2015] eKLR
  • A Provisional Construction Company Limited versus AG, Civil Case No.165 of 1991
  • Ainear Liluyani Njirah versus Agha Khan Health Services
    [2013] eKLR
  • Joseph Karobia Gicheru versus Michael Gachoki Gicheru
    [2013] eKLR
  • Kizito M Lubano versus KEMRI Board of Management & 8 Others
    [2015] eKLR
  • George Onyango Ochieng versus Chemelil Sugar Company Ltd
    [2014] eKLR
Jurisdiction invoked
Articles 41 and 162 of the Constitution as read together with the Employment and Labour Relations Court Act

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, "Praxides Akoth Oduor v Liberty Eagle Liomited & another [2016] KEELRC 48 (KLR)", Case Analysis (2016). Cause No 2184 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/48/eng@2016-09-22

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