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ELRCPartially AllowedNot stated in judgment (memorandum of claim dated 18th January 2017)· [2021] KEELRC 808 (KLR)

Edward Lwangu Mamboleo v Tristar Transport Limited [2021] KEELRC 808 (KLR)

Employment and Labour Relations Court
7 October 2021
2,591 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, employed by Tristar Transport Limited in Kenya as a Driver in May 2014, was transferred to Central Africa under a contract whose letterhead carried a Dubai address. He claimed unpaid holidays and unpaid weekends totalling Kshs.1,612,902.50. The Respondent denied the employment relationship, asserting Tristar Kenya and Tristar Dubai were distinct entities, and alternatively challenged the court's jurisdiction. The court found the two contracts (dated 27th May 2014 and 9th October 2014) were signed by the same Group CEO, Eugene Mayne, on Tristar letterheads, and a registry search showed common ownership; it applied the principle that the corporate veil may be pierced where corporate personality masks improper conduct, and held the Respondent, by whichever name or address, was the Claimant's rightful employer. On jurisdiction, the court held that since the Respondent failed to execute a foreign contract in the prescribed form attested by a Labour Officer as required by Sections 83 and 84 of the Employment Act, the contract was presumed local and governed by Kenyan law, and adopting the 'next real connection' test from Dorcas Kemunto Wainaina v IPAS, the ELRC had jurisdiction as the contract was signed in Nairobi. The court found the Claimant's assertion that he worked 24/7 exaggerated, but emails showed he worked under tremendous stress without recourse. The court awarded Kshs.470,270.00 for one rest day per week (discounted for leave and days off) and Kshs.270,967.54 for unworked public holidays for 2014–2016, totalling Kshs.741,237.54, plus costs and interest at court rate till full payment.

Key legal issues

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01

Whether the Claimant was an employee of the Respondent despite the two Tristar entities having different addresses

Holding

The court found Tristar Kenya and Tristar Dubai to be one and the same entity for purposes of the employment relationship, the contracts being signed by the same Group CEO on Tristar letterheads and the certificate of search showing common ownership

Reasoning

The two contracts dated 27th May 2014 and 9th October 2014 were signed by Eugene Mayne (Group CEO) on Tristar letterheads, and a registry search showed Tristar Transport Limited was owned by Eugene Mayne and Tristar Transport LLC. The Respondent's witness admitted the Dubai and Kenyan organisations worked together. The court relied on the principle that the corporate veil may be pierced where corporate personality is used as a mask for improper conduct.

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02

Whether the ELRC had jurisdiction over a contract of employment partly performed in the Central Africa Republic

Holding

The court had jurisdiction because the contract was signed in Nairobi and, in the absence of a duly attested foreign contract under Section 83 of the Employment Act, the contract was presumed local and governed by Kenyan law

Reasoning

Section 83 requires foreign contracts of service to be in a prescribed form attested by a Labour Officer; Section 86 makes it an offence to induce a person to proceed abroad under an informal contract. The Respondent complied with neither regime and did not allude to Central African labour law. The court adopted the 'next real connection' jurisprudence from Dorcas Kemunto Wainaina v IPAS, holding the contract signed in Nairobi properly fell within the court's jurisdiction under Section 12 of the ELRC Act.

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03

Whether the Claimant was entitled to compensation for unpaid rest days and public holidays

Holding

The claim of working 24/7 was exaggerated, but emails showed the Claimant worked under tremendous stress without recourse; the court awarded one rest day per week (discounted) plus public holidays for 2014–2016

Reasoning

The court held nobody could work 24 hours for seven days over two years and found exaggeration by the Claimant. However, an email of 1st November 2016 admitted staff were working under tremendous stress, and the Respondent neither controverted entitlement to public holidays nor availed the labour practices of either country. The court therefore granted a discounted rest-day claim of Kshs.470,270.00 and public holiday pay of Kshs.270,967.54.

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Legal principles established

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  • Where an employer engages an employee to proceed outside Kenya without a duly attested foreign contract under Section 83 of the Employment Act, the contract is presumed local and governed by Kenyan law
  • The corporate veil may be pierced in exceptional circumstances, including where corporate personality is used as a mask for fraud or improper conduct

Court orders

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  1. 1.Award of Kshs.470,270.00 as compensation for one day of rest per week, discounted for days off and leave
  2. 2.Award of Kshs.270,967.54 for unworked public holidays for 2014–2016
  3. 3.Total award of Kshs.741,237.54
  4. 4.Costs of the suit awarded to the Claimant
  5. 5.Interest at court rate till full payment
Jurisdiction invoked
Section 12 of the Employment and Labour Relations Court Act; Sections 3 and 87 of the Employment Act

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, "Edward Lwangu Mamboleo v Tristar Transport Limited [2021] KEELRC 808 (KLR)", Case Analysis (2021). Not stated in judgment (memorandum of claim dated 18th January 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/808/eng@2021-10-07

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