Harrison Macharia Maina v Leo Design Limited [2021] KEELRC 652 (KLR)
The bottom line
#A Kenyan court ruled that forcing an employee onto indefinite unpaid leave is constructive dismissal, awarding him over Kshs 1.2 million.
What this practically means
#Executive summary
#Key legal issues
#Constructive dismissal
Forcing an employee onto indefinite unpaid leave creates an intolerable environment amounting to constructive dismissal
The court accepted the Claimant's unchallenged evidence that he was placed on indefinite unpaid leave from 22 June 2020 and subsequently forced to resign to obtain terminal benefits. Relying on the principles cited by the Claimant from Roshankar and Sitati, the court found the resignation was not voluntary and fit within the mould of constructive dismissal, entitling him to recompense.
Limitation on employment dues
Public holiday dues recoverable only for 2020, within 12 months of filing
The court applied the 12-month limitation to claims for public holiday allowances, excluding 2017, 2018 and 2019 claims. It also found that for 2020 the Claimant was on unpaid leave, and the schedule showed no days falling on public holidays, so nil was awarded under this head.
Burden of proof on leave
Claimant failed to prove he was denied leave; only leave pay for 2020 awarded
Despite the Respondent's absence, the court examined the record including the Respondent's accountant's statement, which indicated the Claimant had gone on leave. The court therefore did not accept the uncontroverted assertion of untaken leave and limited the award to leave pay for 2020, the year he was on unpaid leave.
Legitimate expectation over motor vehicle
Rejected; Claimant to return the vehicle but awarded Kshs. 150,000/- for repairs and servicing
The Claimant asserted a tacit agreement and legitimate expectation that the vehicle would be sold to him at a nominal price, relying on maintenance and fuelling records. The court did not find this expectation crystallised into an enforceable right, and ordered return of the vehicle within 14 days, while compensating the Claimant for repairs and servicing from his own funds.
Compensation for unfair dismissal
Six months' salary awarded as compensation
The Claimant sought 12 months' compensation as he had no prior warnings or disciplinary action. The court, in its discretion, awarded six months' salary (Kshs. 562,908/-) as compensation for the unlawful constructive dismissal, together with notice pay and other terminal benefits.
Legal principles established
#- An employer placing an employee on indefinite unpaid leave constitutes constructive dismissal where not backed by the contract or law
- Claims for public holiday and other dues must be filed within 12 months; earlier years' dues cannot be recovered
- Uncontroverted evidence does not displace the Claimant's burden of proof on particular heads such as leave
Court orders
#- 1.A declaration that the Claimant has been constructively dismissed from employment
- 2.One month's salary in lieu of notice – Kshs. 93,818/-
- 3.Leave pay for 2020 – Kshs. 93,818/-
- 4.Public holidays in 2020 – nil as no days in the schedule fell on a public holiday
- 5.Six months' salary as compensation for unlawful dismissal – Kshs. 562,908/-
- 6.Payment of Kshs. 393,649/- as terminal benefits calculated but unpaid
- 7.Payment of Kshs. 150,000/- for the repairs and servicing of KCC 470L, the property of the Respondent
- 8.Costs of the suit
- 9.Interest on the sums awarded at court rates from date of judgment until payment in full
- 10.The Claimant to return motor vehicle KCC 470L to the Respondent within 14 days of judgment, in good shape
- Jurisdiction invoked
- Original jurisdiction under the Employment Act and Article 41(1) of the Constitution (as invoked in submissions); court name implies Employment and Labour Relations Court Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Harrison Macharia Maina v Leo Design Limited [2021] KEELRC 652 (KLR)", Case Analysis (2021). Not stated in judgment (Statement of Claim dated 15th February 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/652/eng@2021-09-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.