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ELRCPartially AllowedELRC Cause (statement of claim filed 09.10.2017; number not stated in judgment)· [2019] KEELRC 605 (KLR)

Robert Williamson v Football Kenya Federation (Sued through Its President Nick Mwendwa and Its Secretary General and C.E.O Robert Muthomi) [2019] KEELRC 605 (KLR)

Employment and Labour Relations Court
25 October 2019
2,903 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ordered Football Kenya Federation to pay its former Harambee Stars coach Kshs. 55.9 million because its own letters acknowledged the debt.

What this practically means

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Executive summary

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The claimant, a British national, sued Football Kenya Federation alleging he was employed as Head Coach of the National Football Team (Harambee Stars) for two years from 25.08.2014 at Kshs. 2,500,000 monthly net, with serviced housing. He claimed he was terminated by media announcement in February 2016 when Stanley Okumbi was appointed, having worked one year and six months but been paid only six months' salary, and sought declarations, arrears, terminal dues, residue-of-term compensation and damages, alternatively damages for breach of contract. The respondent denied employing him under the contract produced, alternatively blamed the Government as paymaster, alleged the claimant absconded duty, relied on multiple contract versions as fraudulent, and invoked the arbitration clause challenging jurisdiction. The Court found that the respondent failed its statutory duty to keep employment records under sections 10(6) and (7) of the Employment Act, and that the respondent's letters of 09.02.2016 and 28.11.2016 acknowledged the employment and a debt of Kshs. 55,900,000.00, comprising salary arrears, house rent arrears and terminal dues. The demand letter and acknowledgment were held to constitute binding agreed terms of separation, not made on a without-prejudice basis. The claimant's further prayers, including compensation for unfair termination, failed because he had already been compensated under the agreed separation package incorporating clause 5.7(iv). The arbitration objection was rejected: the parties waived clause 11 and the respondent, having denied the contract's existence, was estopped from invoking its arbitration clause (approbate and reprobate). Judgment was entered for the claimant for Kshs. 55,900,000.00 with interest on default, plus costs of the suit.

Key legal issues

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01

Existence of a contract of service between the claimant and the respondent

Holding

The claimant was employed by the respondent as Head Coach of Harambee Stars on the terms alleged, with the Government paying remuneration under an arrangement the claimant was not privy to

Reasoning

The respondent failed to keep employment records as required by sections 10(6) and (7) of the Employment Act, shifting the burden to it. The respondent's President's letter of 09.02.2016 to the Principal Secretary and the General Secretary/CEO's letter of 28.11.2016 acknowledged the employment relationship and the sums owed, confirming the claimant's account despite the contested versions of the contract.

p. 3
02

Quantum of the respondent's liability

Holding

The respondent is bound by its acknowledgment of Kshs. 55,900,000.00 as pleaded in the demand letter dated 27.11.2016 (salary arrears, house rent arrears, and terminal dues of Kshs. 10,000,000)

Reasoning

The acknowledgment letter of 28.11.2016 by the General Secretary/CEO, read together with the advocate's demand letter, constituted agreed terms of separation binding the parties. The letters were not made on a without-prejudice basis, so the acknowledged sum was enforceable without resolving the validity of the competing contract versions.

p. 3
03

Arbitration clause and jurisdiction

Holding

The Court had jurisdiction; the parties waived the arbitration clause and the respondent was estopped from invoking it after denying the contract

Reasoning

No reference to arbitration was ever made nor any application filed before the Court, so the parties were deemed to have waived clause 11. Further, the respondent denied the very contract containing the arbitration clause, and a party cannot approbate and reprobate. Jurisdiction arose under Article 162(2) of the Constitution and section 12 of the ELRC Act.

p. 4
04

Compensation for unfair termination

Holding

The claimant was not entitled to additional compensation for unfair termination

Reasoning

The contract clause 5.7(iv) provided for Kshs. 10,000,000 if the Federation terminated the coach's services, which sum was already included in the acknowledged separation package. Having been compensated per the agreed separation terms, the claimant could not claim compensation for the residue of the term or other heads.

p. 3

Legal principles established

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  • Under sections 10(6) and (7) of the Employment Act, 2007, the employer bears the duty to keep employment records and failing that, the burden of proving or disproving alleged terms of employment
  • A party who denies the existence of a contract is estopped from relying on an arbitration clause in that same contract to defeat a claim (approbate and reprobate)
  • A demand letter and an acknowledgment of the debt, not made on a without-prejudice basis, constitute binding agreed terms of separation

Court orders

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  1. 1.Judgment entered for the claimant against the respondent for Kshs. 55,900,000.00 payable by 01.12.2019, failing which interest to run at Court rates from the date of judgment till full payment
  2. 2.The respondent to pay costs of the suit

Authorities

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Legislation

  • Employment Actsections 10(6) and (7)
  • Constitution of Kenya, 2010Article 162(2)
  • Employment and Labour Relations Court Actsection 12
  • Arbitration Actreferenced in clause 11 of the agreement ('the Arbitration Act of Laws of Kenya')
Jurisdiction invoked
Article 162(2) of the Constitution of Kenya, 2010 as read with section 12 of the Employment and Labour Relations Court Act, 2011

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, "Robert Williamson v Football Kenya Federation (Sued through Its President Nick Mwendwa and Its Secretary General and C.E.O Robert Muthomi) [2019] KEELRC 605 (KLR)", Case Analysis (2019). ELRC Cause (statement of claim filed 09.10.2017; number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/605/eng@2019-10-25

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