David Kabori Rimberia v Summit Cove Lines Company Limited & another [2019] KEELRC 1868 (KLR)
The bottom line
#A Kenyan court awarded a former project advisor Kshs.700,000 as a lump sum, finding his mixed business-employment relationship defied standard redundancy rules.
What this practically means
#Executive summary
#Key legal issues
#Existence and nature of the employment relationship
The Court found an employment relationship existed but was not conventional, being entangled with friendship, family and profit-sharing business dealings
The Claimant was engaged to lead the parking ticketing project and recruited staff, establishing employment. However, his participation in the maize venture as a profit-sharing confidant of the 2nd Respondent, travelling with the 2nd Respondent's relatives, showed the relationship was a multifaceted association rather than a conventional employer-employee relationship governed strictly by the Employment Act.
Fairness of termination and redundancy under Section 40 of the Employment Act
Termination was substantially justified by the collapse of the project following the High Court judgment; the Court held it impracticable to demand redundancy procedures
The High Court in Constitutional Petition No. 6 of 2011 declared the public-private partnership unlawful, ending the business over which the Claimant was engaged. The Claimant himself advised and executed the termination of other staff. The Court found the employer could not be expected to sustain the relationship or invoke Section 40 where the project had been judicially frustrated.
Quantum of terminal benefits
Specific pleaded heads were replaced with a global award of Kshs.700,000 in full and final settlement
Salaries were frequently adjusted and inconsistently paid; the Claimant accepted reduced salary out of understanding of the circumstances. Given the complexity of the relationship and the parties' failed settlement negotiations (Claimant proposing Kshs.4,708,167 and Kshs.3,094,000; Respondent offering Kshs.200,000), the Court fixed a global sum taking into account pleadings, the relationship and the proposals.
Legal principles established
#- Where the business over which an employee was engaged collapses through no fault of the employer, the employment relationship cannot be sustained and the employer is not bound to invoke redundancy procedures
- Where a relationship is a multifaceted mix of family, friendship, business and employment, and benefits were never clearly defined or consistently paid, the Court may order a global sum in full and final settlement
Court orders
#- 1.The Respondents shall pay to the Claimant a global sum of Kshs.700,000 in full and final settlement of the Claim
- 2.No order on the costs
- 3.No order on interest
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (claim initiated at the Industrial Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "David Kabori Rimberia v Summit Cove Lines Company Limited & another [2019] KEELRC 1868 (KLR)", Case Analysis (2019). ELRC Cause No. 380 of 2011 (originally Industrial Court at Nairobi, transferred to Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1868/eng@2019-03-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.