Duncan Muchina Kamau v Kenindia Assurance Company Limited [2016] KEELRC 137 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Existence of a valid employment contract
A valid employment contract existed from the date of acceptance of the offer, before the effective date
The offer was made on 24th June 2013 and accepted on 28th June 2013. Following the court's own earlier decision in Tom Omondi Ngoko v Bank of Africa, acceptance of an offer of employment creates a binding contract which is not vitiated by non-deployment. Consequently, the withdrawal was a termination of an existing employment relationship, not a mere revocation of an offer.
Lawfulness of withdrawal of the appointment
The Respondent acted lawfully because the Claimant failed to disclose material information about his surcharge as Chairman of Kenya Insurers Sacco Society
The Claimant admitted serving as Chairman of the Sacco and being surcharged. This was material information he was bound in good faith to disclose, particularly as the Sacco's membership was drawn from the insurance industry in which the Respondent operates. Unlike the Ngoko case, the Claimant was notified of the withdrawal and the reason for it.
Remedies
The Claimant was awarded only the notice pay owed to his former employer which the Respondent had undertaken to pay, plus seven days' probationary notice pay
Having found the withdrawal justified, the court declined the declaratory and compensatory reliefs. However, the Respondent had specifically undertaken to pay the notice shortfall owed to the Claimant's former employer, and the contract provided for seven days' probationary notice pay, both of which were enforceable.
Legal principles established
#- An employment contract is concluded upon acceptance of the offer of employment and takes effect even without deployment
- A prospective employee is under a duty of good faith to disclose crucial information relevant to the employment
Court orders
#- 1.Payment to the Claimant of Kshs. 626,340.80 being notice pay due to his former employer which the Respondent had undertaken to pay
- 2.Payment of Kshs. 70,000 being seven (7) days' probationary notice pay as per contract
- 3.Each party to bear their own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (employment dispute)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Duncan Muchina Kamau v Kenindia Assurance Company Limited [2016] KEELRC 137 (KLR)", Case Analysis (2016). Memorandum of Claim dated 15th August 2013, filed 16th August 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/137/eng@2016-12-09
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.