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ELRCPartially AllowedCause No. 1631 of 2014· [2018] KEELRC 1345 (KLR)

James Muiruri Mwangi v Bernard Mareka t/a Lari Fresh Produce [2018] KEELRC 1345 (KLR)

Employment and Labour Relations Court
19 July 2018
850 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, a salesman employed by the Respondent from October 2012 to April 2014, sued for unlawful and unfair termination and terminal dues, claiming unpaid commissions of Kshs. 218,164, salary for May 2014, leave pay of Kshs. 58,013, service pay of Kshs. 39,583.30, airtime of Kshs. 13,000, and six months' salary as compensatory damages, bringing his total claim to Kshs. 439,837. The Respondent admitted the employment and the one month's notice of resignation but denied the commissions, and counterclaimed for Kshs. 24,309.67 allegedly collected from customers and not surrendered. The court framed the dispute as essentially one of quantum, holding that the issue of damages did not arise because the Claimant had resigned rightfully. Applying the rule that the party alleging must prove, the court found that although the commissions were pleaded, they were not supported by any documentary evidence showing receipt of the goods and return of cash sold; the Respondent likewise produced no documentary proof for its counterclaim. Both heads failed. Judgment was entered for the Claimant only on May 2014 salary (Kshs. 35,000), unpaid leave for 1 year and 8 months (Kshs. 58,013) and service pay for 1½ years (Kshs. 28,166), totalling Kshs. 121,179, plus costs of the suit and interest from the date of judgment. The claim otherwise failed, as did the counterclaim.

Key legal issues

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01

Burden of proof on the commissions claim and the counterclaim

Holding

Both the Claimant and the Respondent failed to discharge the evidentiary burden on their respective claims for commissions and the counterclaim

Reasoning

The court held that a claim for commissions must be proved through documentary evidence showing receipt of goods and return of cash sold. The Claimant pleaded commissions from 2012 to 2014 but produced no supporting documents. The Respondent likewise denied the commissions and laid a counterclaim without any documentary proof. Both parties therefore failed on those heads, and what remained was leave pay, service pay and salary for May 2014.

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02

Entitlement to compensatory damages for unfair termination

Holding

Damages for termination do not arise because the Claimant resigned by giving one month's notice

Reasoning

Although the Claimant sought six months' salary as compensation, the court found that he had given one month's notice terminating his employment with effect from 30th May 2014 and thus resigned rightfully. In the circumstances, no cause of action for unlawful or unfair termination, and hence no compensatory damages, existed. The dispute reduced to a pure question of quantum of terminal dues.

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Legal principles established

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  • The party alleging a fact must prove it, and claims for commissions must be proved by documentary evidence showing receipt of the goods and return of cash sold
  • An employee who resigned rightfully cannot claim compensatory damages for termination

Court orders

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  1. 1.1 month's salary for May 2014 of Kshs. 35,000
  2. 2.Unpaid leave due for 1 year and 8 months of Kshs. 58,013
  3. 3.Service pay for 1 ½ years of Kshs. 28,166 (total Kshs. 121,179)
  4. 4.Costs of the suit
  5. 5.Interest on the awarded sums with effect from the date of the judgment
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Claim filed as a Memorandum of Claim under the Court's employment cause procedure)

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, "James Muiruri Mwangi v Bernard Mareka t/a Lari Fresh Produce [2018] KEELRC 1345 (KLR)", Case Analysis (2018). Cause No. 1631 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1345/eng@2018-07-19

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