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ELRCPartially AllowedNot stated in judgment (Memorandum of Claim dated 10th June 2020, filed 18th June 2020)· [2021] KEELRC 859 (KLR)

James Muema Munyao v Lossessia Resorts & Lodges Limited (Children Miscellaneous Application 18 of 2020) [2021] KEELRC 859 (KLR)

Employment and Labour Relations Court
30 September 2021
HWHellen Wasilwa
691 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan hotel chef unfairly fired without notice or a hearing won Kshs. 1.54 million because the employer never showed up to defend the case.

What this practically means

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Executive summary

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The claimant, a qualified executive Chef, sued for compensation for wrongful, unfair and unlawful dismissal. He claimed he was employed by the respondent as an executive Chef at its establishment at Lossessia, Samburu County on 15th June 2018 earning Kshs. 140,000 per month. He said that during his annual leave in December 2019/January 2020 he was told to cut it short, and on 26th January 2020 the general manager informed him that a director had employed someone to take over his duties and his services were no longer required. He was dismissed without notice or a disciplinary hearing; only Kshs. 140,000 was credited to his account and his terminal dues were never paid despite follow-up and a demand letter. He sought maximum compensation of Kshs. 1,680,000, service pay of Kshs. 1,260,000, three months' salary in lieu of notice, unpaid leave, a 2019 bonus, travelling allowance, costs and interest. The respondent was served but never entered appearance or defended the suit, which proceeded by formal proof. The claimant adopted his witness statement and documents. The court found the employment relationship and the uncontroverted dismissal without reason or hearing established, and entered judgment for the claimant for 10 months' salary (Kshs. 1,400,000) as compensation for unfair termination plus one month's salary in lieu of notice (Kshs. 140,000), total Kshs. 1,540,000 less statutory deductions, with costs and interest at court rates. Relief for service pay, leave underpayment, bonus and travelling allowance was not awarded.

Key legal issues

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01

Unfair and unlawful termination

Holding

The claimant's dismissal without notice or disciplinary hearing was unfair and unlawful

Reasoning

The respondent was served with the pleadings but did not enter appearance or file a defence, so the suit proceeded undefended. On formal proof, the claimant adopted his witness statement and documents. The court found the employment relationship established, the dismissal without reason and without an opportunity to be heard, and the claim uncontroverted, justifying compensation.

p. 1
02

Entitlement to compensation and notice pay

Holding

Ten months' salary as compensation plus one month's salary in lieu of notice awarded

Reasoning

The court, exercising its discretion under employment law in an undefended formal proof, awarded 10 months' gross salary (Kshs. 1,400,000) as compensation for unfair termination and one month's salary (Kshs. 140,000) in lieu of notice, totaling Kshs. 1,540,000 subject to statutory deductions, with costs and interest.

p. 2

Legal principles established

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  • An employer who terminates employment without notice or a disciplinary hearing unfairly terminates the employee's employment
  • An uncontroverted claim, where the respondent fails to enter appearance after service, is established on the claimant's evidence

Court orders

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  1. 1.Judgment entered for the claimant: 10 months' salary as compensation for unfair termination (140,000 x 10 = 1,400,000/=)
  2. 2.One month's salary in lieu of notice (140,000/=), total award of 1,540,000/= less statutory deductions
  3. 3.Respondent to pay costs of the suit plus interest at court rates from the date of the judgment
Jurisdiction invoked
Employment and labour relations jurisdiction of the Employment and Labour Relations Court (claim for wrongful, unfair and unlawful dismissal under employment law)

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, "James Muema Munyao v Lossessia Resorts & Lodges Limited (Children Miscellaneous Application 18 of 2020) [2021] KEELRC 859 (KLR)", Case Analysis (2021). Not stated in judgment (Memorandum of Claim dated 10th June 2020, filed 18th June 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/859/eng@2021-09-30

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