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ELRCPartially AllowedCause No 1524 of 2016· [2019] KEELRC 1587 (KLR)

Mary Gathoni Wanjiku v New Landmarc Medical Laboratories Limited [2019] KEELRC 1587 (KLR)

Employment and Labour Relations Court
17 May 2019
1,974 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 sued the respondent, New Landmarc Medical Laboratories Limited, seeking a declaration that her termination was unlawful and unfair, terminal dues and compensatory damages of Kshs. 341,428.60 (service pay, pay in lieu of notice, 12 months' compensation, and unpaid salary for February, March and April 2016), interest and costs. The respondent, through its director (RW), denied an employment relationship, asserting the claimant was an intern/trainee taken to gain experience before completing her Diploma in Applied Biology, that the alleged letter of appointment dated 25.12.2014 was fake, and counterclaimed for Kshs. 223,800 allegedly misappropriated while the claimant ran Keridam Laboratory, based on a financial review dated 05.07.2016. The Court framed four issues. On the first, it found the parties were in a contract of service because the claimant earned Kshs. 20,000 monthly, satisfying the definition of employee in section 2 of the Employment Act, 2007, though not on reliance on the alleged letter of appointment, which was inconsistent with her qualifications and internally contradictory. On unfair termination, the Court preferred the respondent's evidence that the claimant left on her own accord on 18.05.2016 after failed negotiation and mediation, so the claims for 12 months' compensation and notice pay failed. March and April 2016 salary (Kshs. 20,000 each) was awarded; the February claim failed as that month's pay was effected on 11.03.2016. The counterclaim succeeded: the Kshs. 223,800 variance was established on a balance of probability. Judgment was entered for the respondent for Kshs. 223,800 payable by 01.08.2019, failing which interest at Court rates, net of Kshs. 40,000 due to the claimant (net Kshs. 183,800). The claimant was to pay the respondent's partial costs fixed at Kshs. 40,000.

Key legal issues

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01

Whether the parties were in a contract of service

Holding

Yes - the parties were in a contract of service and employment relationship, the claimant being a paid trainee, though not on the alleged letter of appointment

Reasoning

The claimant admitted approaching the respondent's director to gain experience, was not then qualified as a medical laboratory technician, and the alleged letter of appointment was inconsistent with her qualifications (designating her Lab Technician) and internally inconsistent (showing acceptance in February 2014 before its date of 25.12.2014). Yet she earned Kshs. 20,000 monthly, meeting the statutory definition of employee as a person employed for wages.

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02

Whether the claimant's employment was unfairly terminated

Holding

No unfair termination; the claimant left on her own accord on 18.05.2016

Reasoning

The claimant claimed she was fired by phone on 12.05.2016, but the respondent's director testified credibly that the claimant left on her own accord on 18.05.2016, after which the parties engaged in negotiation and mediation which failed. The Court found no reason to doubt that evidence, so the compensation and notice pay claims failed.

p. 2
03

Whether salary for February, March and April 2016 was payable

Holding

March and April salary (Kshs. 20,000 each) awarded; February claim failed

Reasoning

RW admitted owing Kshs. 20,000 for April 2016. For March, she testified to financial problems but produced no evidence of part payment, so the claimant was awarded Kshs. 20,000 as prayed. The payment effected on 11.03.2016 was accepted as being for February 2016, defeating that prayer.

p. 2
04

Whether the respondent was entitled to the counterclaim for Kshs. 223,800

Holding

Counterclaim succeeded; claimant liable for Kshs. 223,800 less Kshs. 40,000 owed to her, net Kshs. 183,800

Reasoning

The financial review by Chege Muvchunguzi Mwangi and Company LLP covered August 2015 to May 2016 when the claimant was in charge of Keridam Laboratory and kept the manual records. The variance of Kshs. 223,800 was established on a balance of probability. Although no disciplinary process occurred during the claimant's service, no ground was established to defeat her liability.

p. 3

Legal principles established

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  • A trainee receiving monthly payment may be an employee within the parties' agreement and arrangement even where a purported letter of appointment is unreliable
  • A claimant who leaves employment on her own accord and engages in negotiation and mediation has not been unfairly terminated
  • Liability for misappropriated funds may be established on a balance of probability by a financial review where no disciplinary process occurred during the service

Court orders

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  1. 1.Judgment entered for the respondent against the claimant for payment of Kshs. 223,800.00 by 01.08.2019, failing which interest to run at Court rates from the date of judgment till full payment
  2. 2.Award to claimant of Kshs. 20,000.00 pay for April 2016 and Kshs. 20,000.00 for March 2016, netted off against the counterclaim (net Kshs. 183,800.00 to the respondent)
  3. 3.Claimant to pay respondent's partial costs of the suit fixed at Kshs. 40,000.00

Authorities

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Legislation

  • Employment Act, 2007section 2 (definition of employee)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007)

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, "Mary Gathoni Wanjiku v New Landmarc Medical Laboratories Limited [2019] KEELRC 1587 (KLR)", Case Analysis (2019). Cause No 1524 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1587/eng@2019-05-17

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