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ELRCPartially AllowedCause No 118 of 2015· [2020] KEELRC 1090 (KLR)

Humphrey Munyithya Mutemi v Soluxe International Group of Hotels and Lodges Limited [2020] KEELRC 1090 (KLR)

Employment and Labour Relations Court
15 May 2020
1,678 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan employer who fires a worker without a hearing must pay compensation, even when the employee sues alone and the company never shows up in court.

What this practically means

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Executive summary

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This was an undefended employment claim before the Employment and Labour Relations Court at Nairobi, in which the claimant, a driver employed by the respondent from December 2012 at a monthly salary of Kshs.20,000, alleged that his employment was unlawfully and unfairly terminated on 4th December 2014 on the pretext that the respondent needed only two drivers for two cars. He claimed two months' salary in lieu of notice, damages for unfair termination, overtime pay from June 2013 to December 2014, costs and interest. The respondent, though served, neither entered appearance nor filed a defence, and the matter proceeded as an undefended claim with the claimant testifying alone. The court framed three issues: existence of an employment relationship, fairness of the termination, and entitlement to reliefs. Applying Monica Kanini Mutua, it held that the claimant proved the employment relationship through the termination letter, duty sign sheets, overtime sheets and certificate of service. On fairness, relying on Walter Ogal Anuro, the court found no evidence of a disciplinary hearing and held that hearing and notification are mandatory under Section 41 of the Employment Act, 2007; the termination was therefore unfair and unlawful. On reliefs, the notice pay prayer was dismissed because the claimant had already received the one month's notice he was entitled to under Section 36. He was awarded six months' salary (Kshs.120,000) as compensation and Kshs.104,920 in overtime, computed for 12 months as a continuing injury, totalling Kshs.224,920, with costs and interest at court rates.

Key legal issues

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01

Existence of an employment relationship in an undefended claim

Holding

The Claimant established the employment relationship through the letter of termination, duty sign sheets, overtime work sheets and certificate of service.

Reasoning

As the Respondent did not enter appearance or file a defence, the court applied the principle from Monica Kanini Mutua that a claimant in an undefended claim must prove all facts including the employment relationship. Documents produced - termination letter, duty sign sheets, overtime sheets and certificate of service - sufficed to establish the relationship, consistent with the approach in Elijah Kipkoros Tonui and Herman Ilangarwa Shidakwa.

p. 2
02

Procedural fairness of the termination

Holding

The termination was unfair and unlawful as the Claimant was not accorded a hearing.

Reasoning

There was no evidence of minutes of a disciplinary hearing or any process according the Claimant a hearing before termination. The court held that hearing and notification are mandatory under Section 41 of the Employment Act, 2007, and applying Walter Ogal Anuro, a valid termination requires both substantive justification and procedural fairness. With neither controverted, the termination failed the fairness test.

p. 3
03

Compensation for unfair termination

Holding

The Claimant was awarded six months' salary as compensation, Kshs.120,000.

Reasoning

Having found the termination unfair, the court considered the length of service (approximately two years), the fact that the Claimant did not contribute to the termination by his conduct, and that the reasons in the termination letter were grounds for redundancy. On these factors it fixed compensation at six months' salary, less than the twelve months claimed.

p. 3
04

Overtime claim

Holding

The Claimant was awarded the claimed Kshs.104,920 for overtime, computed for 12 months only as a continuing injury.

Reasoning

In the absence of contrary evidence from the Respondent, and applying the rule that the employer bears the duty to keep and produce records of hours of work, the court accepted the sign-in sheets showing an average of one hour's overtime per day. As a continuing injury, it limited the award to 12 months at 6 days a week; since the claim was lower than the amount due, the claimed sum was awarded.

p. 3
05

Salary in lieu of notice

Holding

The prayer for two further months' notice pay was dismissed as the Claimant had already been paid the one month's notice he was entitled to under Section 36 of the Employment Act, 2007.

Reasoning

The Claimant admitted receiving Kshs.40,000, being one month's salary in lieu of notice, at separation. With no evidence supporting an entitlement to three months' notice, he was limited to one month's notice under Section 36, which had been paid. The prayer therefore stood dismissed.

p. 3

Legal principles established

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  • In an undefended claim, the claimant must establish all the facts of the claim, including the existence of an employment relationship as a preliminary issue.
  • For a termination to pass the fairness test, there must be both substantive justification and procedural fairness.
  • Hearing and notification are mandatory requirements under Section 41 of the Employment Act, 2007 before termination.
  • It is the employer's duty to keep records including hours of work and to produce them in legal proceedings.

Court orders

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  1. 1.Award of six months' salary as compensation for unfair termination in the sum of Kshs.120,000
  2. 2.Award of Kshs.104,920 for overtime worked between June 2013 and December 2014
  3. 3.Total award of Kshs.224,920
  4. 4.Costs of the suit awarded to the Claimant
  5. 5.Interest at Court rates from the date of Judgment until payment in full
  6. 6.Prayer for two months' salary in lieu of notice dismissed

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 36
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (5)

  • Monica Kanini Mutua v Al-Arafat Shopping Centre and Another
    [2018] eKLR
  • Elijah Kipkoros Tonui v Ngara Opticians T/A Bright Eyes Limited
    (2014) eKLR
  • Herman Ilangarwa Shidakwa v Armati Security Solutions Limited
    [2019] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2013) eKLR
  • Meshack Kiio Ikulume v Prime Fuels Kenya Limited
    (2013) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (claim for unfair termination of employment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (12)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Humphrey Munyithya Mutemi v Soluxe International Group of Hotels and Lodges Limited [2020] KEELRC 1090 (KLR)", Case Analysis (2020). Cause No 118 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1090/eng@2020-05-15

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