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ELRCStruck OutCause 602 of 2012· [2018] KEELRC 1139 (KLR)

Patrick Muema Munyoki v Paradise Hotel Ltd & another [2018] KEELRC 1139 (KLR)

Employment and Labour Relations Court of Kenya
21 September 2018
ANAbuodha J. N.
970 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 struck out a claim over a Juba hotel job, ruling it had no jurisdiction because the employment happened in South Sudan for a South Sudanese company.

What this practically means

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Executive summary

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The claimant, employed as a supervisor at the 1st respondent's hotel in Juba, South Sudan, under a contract executed in Nairobi, claimed Kshs 145,875.53 being unpaid salary for November and December 2008 and days worked in January 2009, and alleged summary dismissal on 15th January 2009 without notice. The respondents, a company incorporated in South Sudan and its managing director, denied liability, asserting that the claimant's dues were computed following a complaint to the Juba County Labour Office and paid in cash there, after which the claimant left employment of his own accord. Three defence witnesses, including the General Manager Bosco Taban, testified that the claimant was paid USD 2,372 in full settlement at the Labour Office. The court identified the true contest as whether the payment made was in full and final settlement. It nevertheless held that it lacked jurisdiction: the employer was incorporated in South Sudan, the contract was performed there, payment was denominated in USD or Sudanese currency, and the dispute had been admitted for adjudication before the South Sudanese Labour Office, the forum best placed to verify the allegations of payment. Adjudicating the matter in Nairobi would be inconvenient and likely unjust. The court therefore declined jurisdiction, struck out the suit, and made no order as to costs.

Key legal issues

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01

Whether the Employment and Labour Relations Court at Nairobi has jurisdiction over an employment dispute performed in South Sudan

Holding

The court declined jurisdiction and struck out the suit

Reasoning

The 1st respondent is a company incorporated in South Sudan; the contract was performed in Juba, South Sudan, and payment was to be in Sudanese currency or USD. The dispute had also been admitted for adjudication by the South Sudanese Labour Office, which is best placed to accept or refute allegations of payment. Adjudicating the matter in Kenya would be inconvenient and likely yield injustice.

p. 2
02

Whether the claim as pleaded in Kenya shillings was properly before the court

Holding

The claim in Kenya shillings had no basis since the currency of the contract was USD, and no exchange rate was pleaded

Reasoning

The contract of employment provided for payment in Sudanese currency or USD. A claim in Kenya shillings was therefore without foundation, and the Kenya shilling equivalent was not pleaded together with an indicative exchange rate, leaving the court unable to entertain the quantified claim.

p. 2

Legal principles established

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  • The place of incorporation of the employer and the place of performance of the employment contract are decisive of this court's jurisdiction, regardless of the nationality of the directors
  • Where a dispute has been admitted for adjudication before a foreign labour office, that forum is best placed to resolve it

Court orders

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  1. 1.The court declined jurisdiction over the claim
  2. 2.The suit was struck out
  3. 3.No order as to costs
Jurisdiction invoked
Territorial jurisdiction of the Employment and Labour Relations Court over an employment contract performed in South Sudan for a company incorporated under South Sudan law

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, "Patrick Muema Munyoki v Paradise Hotel Ltd & another [2018] KEELRC 1139 (KLR)", Case Analysis (2018). Cause 602 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1139/eng@2018-09-21

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