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ELRCDismissedNot stated in the judgment as provided· [2021] KEELRC 1005 (KLR)

Jane Wanjiku Mwangi v John Mwangi Nderitu [2021] KEELRC 1005 (KLR)

Employment and Labour Relations Court
21 September 2021
2,472 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that a caretaker paid commission on rent collected was a commission agent, not an employee, so her employment claims failed.

What this practically means

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Executive summary

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The claimant sued the respondent in the Employment and Labour Relations Court at Nakuru for unlawful termination, underpayment and house allowance, contending she was employed as caretaker of the respondent's Jomwamu Flats in Kiratina Estate, Nakuru from March 2013, housed on the premises, paid only Kshs. 14,000/- once, and terminated on 11th April 2018 when the respondent locked her house to recover alleged rent arrears. She sought one month's salary in lieu of notice, underpayment of wages of Kshs. 1,436,570.15 and annual leave of Kshs. 95,750.00, invoking the prescribed caretaker wages under Legal Notices 112 of 2017 and 2 of 2018. The respondent denied any employment relationship, asserting the claimant was his tenant from June 2013 and later an agent paid 10% commission on rent collected, shared with his son, and that she lost monies she failed to account for. He challenged the court's jurisdiction for want of an employer-employee relationship. The court framed two issues: the nature of the relationship and entitlement to remedies. Relying on the parties' conduct - rent collection, reporting incidents, being referred to as caretaker, and consistent payment of commission evidenced by the exhibits - the court held the claimant was a commission agent and not an employee. Consequently the employment-related remedies were unavailable; a commission claim, not having been pleaded, could not succeed. The claim was dismissed in its entirety with costs to the respondent.

Key legal issues

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01

Nature of the relationship between the claimant and the respondent

Holding

The claimant was a commission agent, not an employee

Reasoning

In the absence of an express agreement, the court had recourse to the parties' conduct. The claimant collected rent, reported incidents at the premises, and was referred to as a caretaker, but she was always paid commission on monies collected and never a salary. Despite being called a caretaker, her conduct pointed to that of a commission agent, who is not an employee.

p. 4
02

Whether the claimant is entitled to the remedies sought

Holding

No entitlement to employment-related remedies absent an employment relationship

Reasoning

Having found no employer-employee relationship, the remedies claimed - salary arrears, house allowance and leave - could not accrue. Any claim would have been for commission, which was not pleaded, so the claim failed in its entirety.

p. 4

Legal principles established

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  • A contract may be inferred from the conduct of the parties even where no words were used
  • A commission agent is paid a commission and not a salary, and is not an employee

Court orders

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  1. 1.The claim is dismissed with costs to the respondent

Authorities

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Legislation

  • Legal Notice Number 112Remuneration Order - caretaker wages
  • Legal Notice Number 2 of 1st May, 2018Remuneration Order - caretaker wages

Cases cited (4)

  • Stanley Mungai Muchai v National Oil Corporation of Kenya
    [2012] eKLR
  • Charles Juma Oleng v Auto Garage Limited and another
    [2014] eKLR
  • Elijah Moranga v John Leinsly Irene Onderi
    [2014] eKLR
  • Ali Abdi Mohamed VS Kenya Shell & Co. Ltd
    (2017) eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction, contested on the basis that no employer-employee relationship existed

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, "Jane Wanjiku Mwangi v John Mwangi Nderitu [2021] KEELRC 1005 (KLR)", Case Analysis (2021). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1005/eng@2021-09-21

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