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ELRCDismissedNot stated in the judgment provided· [2019] KEELRC 263 (KLR)

Gilbert Muriithi Njagi & 4 others v Muthiru Dairy Farmers Cooperative Society [2019] KEELRC 263 (KLR)

Employment and Labour Relations Court
28 November 2019
1,358 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 Claimants sued the Respondent, their employer, alleging that their pay was reduced and their services terminated without justification, notice or payment of accrued leave. They sought compensation for unlawful termination up to 12 months' wages, general damages at 15% of the total, damages for lost earnings from October 2016, three months in lieu of leave, unpaid leave days, costs and interest. The Respondent denied unfair termination, contending the claims predated its incorporation in 2012 and were time-barred under Section 90 of the Employment Act, and that the Claimants themselves abandoned their work stations by walking out on 27th February 2017 after a special general meeting resolved to downsize operations and reduce salaries. The suit was disposed of by way of submissions and documents under Rule 21 of the Court Rules 2016. The court held that the Claimants were employees of the Respondent only from its incorporation on 11th September 2012, and claims relating to the earlier period could not be answered by the Respondent. The court further found the claims unquantified and unproved on a balance of probabilities, noting that employment claims must relate to specific sums. On the walkout, no defence was proffered against the letter to the County Labour Office Chuka evidencing that the Claimants left their employment, so they could not claim dismissal. The suits were dismissed with no order as to costs.

Key legal issues

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01

Whether the Claimants were employees of the Respondent and from what date

Holding

The Claimants were proved to be employees of the Respondent, but only from the date of the Respondent's incorporation on 11th September 2012; claims predating incorporation cannot be met by the Respondent

Reasoning

Employment was proved by the claims and the Respondent's concession. However, the Respondent was incorporated on 11th September 2012, so no employment relationship could exist before that date. Claims relating to the earlier period, when the Claimants served Muthiru Dairy Farmers Self Help Group, cannot be answered by the Respondent and were in any event time-barred under Section 90 of the Employment Act.

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02

Whether the Claimants' claims for compensation and damages were proved

Holding

The claims failed for want of quantification and proof; no figures were offered and the sums allegedly paid or owing were not established

Reasoning

The Claimants sought the maximum 12 months' wages, general damages at 15%, lost earnings, leave pay and unpaid working days of leave, but offered no figures at all. The further list of documents did not clarify what sums were alleged to have been paid as opposed to sums that ought to have been paid. Unquantified claims, other than general damages for constitutional abridgement, defamation or contempt, are impermissible and unproven claims fail on a balance of probabilities.

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03

Whether the Claimants were unfairly terminated or abandoned their employment

Holding

The Claimants walked out of their employment and therefore cannot claim dismissal; no defence was proffered to the evidence of the walkout

Reasoning

The Respondent asserted that the Claimants abandoned their work stations on 27th February 2017 and never returned, and reported the matter to the District Labour Office Chuka. The letter to the County Labour Office evidenced the walkout, and no defence was proffered against it. Having walked out, the Claimants could not claim dismissal, whether fair or unfair.

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Legal principles established

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  • A party must plead and prove specific quantified sums in employment claims, as employment is not a contract at large with indefinite terms
  • An employer is not liable for any employment relationship predating its incorporation
  • An employee who walks out of employment cannot claim dismissal

Court orders

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  1. 1.The Claimants' suits are dismissed with no order as to costs

Authorities

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Legislation

  • Employment ActSection 90
  • Employment ActSection 2
  • Employment ActSection 43
  • Employment ActSection 41
  • Employment ActSection 44
  • Employment ActSection 45
  • Employment ActSection 44(4)(a)
  • Court Rules 2016Rule 21

Cases cited (3)

  • Stanley Mungai Muchai v National Oil Corporation of Kenya
    [2012] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Cecilia Karuru Ngayu v Barclays Bank of Kenya & Another
    [2016] eKLR
Jurisdiction invoked
Not stated in the judgment provided (suit disposed of under Rule 21 of the Court Rules 2016)

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, "Gilbert Muriithi Njagi & 4 others v Muthiru Dairy Farmers Cooperative Society [2019] KEELRC 263 (KLR)", Case Analysis (2019). Not stated in the judgment provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/263/eng@2019-11-28

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