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ELRCPartially AllowedCause No. 1913 of 2011· [2016] KEELRC 1510 (KLR)

Alex Musembi Mulili v Jacob Nzioki Kwesi & 3 others [2016] KEELRC 1510 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
18 March 2016
1,736 words in judgment
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The bottom line

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A Kenyan employer's own letter confirming an employee's job and salary defeated its 'student attachment' defence, costing it Kshs 234,000 for unlawful dismissal.

What this practically means

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Executive summary

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The claimant, a registered medical laboratory technician, sued four partners trading as Clinic Lab and Pharmacy/Al-Rahamed claiming he was employed from 1st July 2008 as a Laboratory Technician at a monthly salary of Kshs 15,000 (later confirmed as Kshs 18,000) and summarily dismissed without notice or reasons on 1st July 2011. He sought refunds of unremitted NHIF and NSSF deductions, notice pay, leave pay, house allowance and damages for unfair termination. The respondent denied an employment relationship, contending the claimant was a student attached on locum basis paid variable allowances, and that the association ended in June 2009 over alleged theft. The court framed three issues: the nature of the relationship, remuneration and severance, and entitlement to reliefs. Relying principally on the respondent's own letter of 13th June 2011 confirming the claimant's employment since 1st July 2008 at Kshs 18,000 monthly, the court found the attachment defence patently false and the respondent's witnesses inconsistent with their own documents. The claimant was held to have acquired capacity to be employed upon registration on 13th May 2009. The summary dismissal was found unlawful and unfair, and the claimant was awarded eight months' salary (Kshs 144,000) as compensation under section 49 of the Employment Act 2007, plus notice pay, NHIF and NSSF refunds and 63 days' leave pay, totalling Kshs 234,000 with interest at court rates from filing until payment in full. The house allowance claim was dismissed for want of proof. The respondent was ordered to pay the costs of the suit. Judgment was delivered at Nairobi on 18th March 2016 by Mathews N. Nduma, Principal Judge.

Key legal issues

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01

Whether the claimant was an employee or a student on attachment

Holding

The claimant proved on a balance of probabilities that he was an employee as a Medical Laboratory Technician; the respondent's letter of 13th June 2011 confirming employment from 1st July 2008 and salary of Kshs 18,000 defeated the attachment defence.

Reasoning

The respondent's letter to Select Management Services confirmed the claimant was its employee as a Medical Laboratory Technician since 1st July 2008 earning Kshs 18,000 monthly. That documentary evidence directly contradicted the oral testimony of RW1 and RW2. Though the claimant may initially have been attached as a student on allowance, he obtained registration on 13th May 2009 and acquired legal capacity to be employed. The claimant was found credible; the respondent's witnesses were not.

p. 3
02

Whether the summary dismissal was lawful and fair

Holding

The dismissal was unlawful and unfair, entitling the claimant to compensation under section 49(1)(c) as read with section 49(4) of the Employment Act 2007; 8 months' salary awarded.

Reasoning

The claimant was dismissed without notice, notice to show cause, disciplinary hearing or any reason assigned. He had served three years continuously with no adverse employment record, lost career prospects at an early age, received no terminal benefits or certificate of service, and was denied letters of employment and payslips. The court treated this as malicious treatment and awarded eight months' salary as compensation for dismissal contrary to section 45 of the Employment Act 2007.

p. 3
03

Entitlement to terminal benefits - notice pay, NHIF/NSSF refunds and leave

Holding

Notice pay of one month (Kshs 18,000), NHIF/NSSF refunds (Kshs 18,000 total) and 63 leave days (Kshs 54,000) awarded; house allowance claim dismissed for want of proof.

Reasoning

The claimant proved he was summarily dismissed without notice or payment in lieu, so one month's salary in lieu of notice was awarded. In the absence of contrary documentary evidence, the court found the respondent deducted but failed to remit NHIF and NSSF. The Employment Act guarantees every permanent employee at least 21 days leave per completed year, yielding 63 days over three years. However, the house allowance claim failed because there was no written contract and the salary exceeded the general minimum wage.

p. 4

Legal principles established

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  • Summary dismissal without notice, notice to show cause, disciplinary hearing or any reason assigned is unlawful and unfair, attracting compensation under section 49(1)(c) as read with section 49(4) of the Employment Act 2007.
  • An employer's own written document confirming employment terms prevails over contradictory oral testimony.

Court orders

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  1. 1.Kshs 144,000 compensation for unlawful and unfair dismissal (8 months' salary)
  2. 2.Kshs 10,800 refund of NHIF deductions not remitted
  3. 3.Kshs 7,200 refund of NSSF deductions not remitted
  4. 4.Kshs 18,000 one month's salary in lieu of notice
  5. 5.Kshs 54,000 in lieu of 63 leave days not taken
  6. 6.Total award of Kshs 234,000 payable with interest at court rates from date of filing suit till payment in full
  7. 7.Respondent to pay the costs of the suit

Authorities

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Legislation

  • Employment Actsection 45
  • Employment Actsection 49(1)(c)
  • Employment Actsection 49(4)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (unfair and unlawful termination claims)

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, "Alex Musembi Mulili v Jacob Nzioki Kwesi & 3 others [2016] KEELRC 1510 (KLR)", Case Analysis (2016). Cause No. 1913 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1510/eng@2016-03-18

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