Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No 677 of 2014· [2019] KEELRC 802 (KLR)

Frank Saenger v Afrikon Limited [2019] KEELRC 802 (KLR)

Employment and Labour Relations Court
27 September 2019
2,511 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

#

A Kenyan court awarded a former director €68,000 in unpaid salary and notice pay after his employer failed to appear with evidence and went months without paying him.

What this practically means

#

Executive summary

#
The Claimant sued the Respondent claiming outstanding salary dues of 65,691 Euros, one month's salary in lieu of notice of 8,500 Euros, damages for breach of contract under section 18(2) of the Employment Act, interest and costs. He alleged employment as Operations Director at the Olkaria IV Geothermal Power Plant from October 2012 to December 2013 at a monthly salary of 8,500 Euros, unpaid from June to December 2013. The Respondent denied an employment relationship, asserting he was an independent contractor whose contract was to expire on 30th September 2013, and contested the court's jurisdiction over the remedies. At hearing, the Claimant testified and called Mr. Jungbong Sue; the Respondent adduced no evidence. The court framed three issues: employment status, unfair termination, and entitlement to reliefs. Applying section 2 of the Employment Act and the employer-employee tests from Martin Juma Kundu, Samuel Wambugu Ndirangu and Short v Henderson, the court found the Claimant was an employee under an oral contract of service, his uncontroverted evidence having been corroborated by CW2 and bank statements. The unfair termination claim failed for lack of proof under sections 45 and 47(5), but the court found the Respondent's failure to pay salary for about seven months was a fundamental breach amounting to constructive termination. Judgment was entered for the Claimant for 68,000 Euros, being one month's salary in lieu of notice (8,500 Euros) and seven months' unpaid salary (59,500 Euros), plus costs and interest at court rates from the date of filing, subject to statutory deductions.

Key legal issues

#
01

Whether the Claimant was an employee or an independent contractor

Holding

The Claimant was an employee under an oral contract of service, proved on a balance of probability since the respondent adduced no rebutting evidence

Reasoning

The court applied section 2 of the Employment Act defining a contract of service and the multi-factor tests from Martin Juma Kundu, Samuel Wambugu Ndirangu and Short v Henderson. The Claimant's testimony of a monthly salary of 8500 Euros was corroborated by CW2 and by bank statements showing payments, and the respondent chose not to adduce evidence to controvert it. The court found an oral contract of service as Operations Director from September 2012 to December 2013.

p. 4
02

Whether the contract was unfairly terminated

Holding

Claim of unfair termination failed for lack of proof, but the court found constructive termination by the respondent's fundamental breach in failing to pay salary for about seven months

Reasoning

Under sections 45(2) and 47(5) of the Employment Act, the employee bears the burden of proving unfair termination. Neither party adduced evidence on compliance with sections 41, 43 and 45, so unfair termination was not proved. However, the uncontroverted evidence showed the respondent failed to pay salary for June to December 2013, a fundamental breach entitling the claimant to repudiate and treat it as constructive termination.

p. 4
03

Whether the Claimant is entitled to the reliefs sought

Holding

Partially: one month's salary in lieu of notice (8500 Euros) and unpaid salary June–December 2013 (59,500 Euros) awarded, totalling 68,000 Euros

Reasoning

Having found an employment relationship and constructive termination through fundamental breach, the court awarded one month's salary in lieu of notice as the quantum of damages for breach, and the unpaid salary of 7 months at 8500 Euros per month, as these were neither disputed nor disproved by evidence.

p. 5

Legal principles established

#
  • Where the respondent fails to tender any evidence, uncontroverted claimant evidence proves the claim on a balance of probability
  • A contract of service may be oral or implied under section 2 of the Employment Act
  • An employer's failure to pay salary for about seven months is a fundamental breach entitling the employee to repudiate and treat the breach as constructive termination and demand salary in lieu of notice
  • The burden of proving unfair termination rests with the employee, while the burden of justifying the reason for termination rests with the employer

Court orders

#
  1. 1.Judgment entered for the claimant against the respondent for the sum of 68000 Euros plus costs and interest at court rates from the date of filing the suit
  2. 2.Award subject to statutory deductions

Authorities

#

Legislation

  • Employment Actsection 2
  • Employment Actsection 10(1)
  • Employment Actsection 18(2)
  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 45
  • Employment Actsection 45(2)
  • Employment Actsection 47(5)
  • Evidence Actsections 107 and 109
  • Employment and Labour Relations Court Actnot specified

Cases cited (5)

  • Peter Wafula Juma & 2 Others v Republic
    [2014] eKLR
  • Samuel Wambugu Ndirangu v 2NK Sacco Society Limited
    [2019] eKLR
  • Short v Henderson Ltd
    [1946] 62, T.L.R. 429
  • Charles Mutua Mwanzi v Invesco Assurance Company Limited
    [2016] eKLR
  • Martin Juma Kundu v Kemu Salt Packers Production Limited
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court Act (invoked by respondent on remedies); Employment Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Frank Saenger v Afrikon Limited [2019] KEELRC 802 (KLR)", Case Analysis (2019). Cause No 677 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/802/eng@2019-09-27

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