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Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No 302 of 2015· [2019] KEELRC 1028 (KLR)

Roseline Ohanya v Emergency Plus Medical Services [2019] KEELRC 1028 (KLR)

Employment and Labour Relations Court
16 July 2019
1,915 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan marketing agent won her claim for full contractual commission because her employer never communicated any change to her agreed terms.

What this practically means

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Executive summary

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The claimant, a pharmacist trained as an Emergency Medical Technician, was engaged by the respondent, a subsidiary of the Kenya Red Cross Society offering emergency ambulance services, under a contract dated 16th May 2013 to market its ambulance services on a commission of 10% of cash sales, with the respondent covering her airtime, internet and bus fare. She claimed that she sourced and facilitated the ambulance lease contract between the respondent and Kisii County Government at Kshs.5.4 million per month, and that she was entitled to 10% commission amounting to Kshs.12,960,000, but was instead offered a one-off 'token of appreciation' of 1.5% (Kshs.72,900) and paid Kshs.81,000, with her contract revoked on 24th February 2014. The respondent denied that she initiated the Kisii County engagement, asserting it was driven by a Kenya Red Cross Society taskforce on devolution, and that the contract was for one year only. The court found it undisputed that the claimant was engaged as a marketing agent at 10% commission and that she was involved in the Kisii contract, as the respondent's own letter of 18th December 2013 acknowledged her 'hard work in bringing on board the Kisii County project'. Holding that no other agreement varied her contractual entitlement and that she had a legitimate expectation to commission per her contract, the court awarded her 10% commission, limited to one year since the Kisii contract ran for one year: Kshs.648,000 less Kshs.81,000 paid, i.e. Kshs.567,000, with interest at court rates from the date of judgment and costs to the claimant. Her claim for two years' commission and, effectively, damages for wrongful termination was not allowed.

Key legal issues

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01

Whether the claimant was entitled to 10% commission on the Kisii ambulance contract notwithstanding the respondent's offer of a 1.5% token of appreciation

Holding

The claimant was entitled to 10% commission because the engagement contract provided only for 10% commission on cash sales and no other agreement varied this for the Kisii contract

Reasoning

The court found it undisputed that the claimant was engaged as a marketing agent at 10% commission and that she was involved in the Kisii contract, as acknowledged by the respondent's letter offering a 1.5% token. The court held the respondent could not unilaterally change the payment basis; the claimant had a legitimate expectation to be paid per her contract, and any different terms should have been communicated to her.

p. 3
02

Whether commission was payable for two years

Holding

Commission was payable for one year only, as the Kisii contract ran for one year

Reasoning

The respondent evidence, which the court accepted, was that the contract signed on 22nd October 2013 was for one year up to 22nd October 2014. The court therefore computed commission at 10% of Kshs.540,000 per month for one year, i.e. Kshs.648,000, less Kshs.81,000 already paid, leaving Kshs.567,000.

p. 3

Legal principles established

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  • Where an engagement contract provides a single payment parameter (commission), an employer cannot unilaterally vary the terms of payment for a particular transaction without communicating new terms to the agent

Court orders

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  1. 1.Judgment entered for the claimant against the respondent in the sum of Kshs.567,000/-
  2. 2.The sum to attract interest at court rates from the date of judgment
  3. 3.The respondent to pay the claimant's costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the claimant's memorandum of claim for unlawful termination and unpaid commission (Employment and Labour Relations Court Act; Labour Relations Act not expressly cited in the judgment)

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, "Roseline Ohanya v Emergency Plus Medical Services [2019] KEELRC 1028 (KLR)", Case Analysis (2019). Cause No 302 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1028/eng@2019-07-16

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