Chimera Chimoyo Alfan v Steel Makers Limited [2021] KEELRC 1018 (KLR)
The bottom line
#A Kenyan employer that shows up to court without evidence automatically loses an unfair termination case, but employees must file leave pay claims within twelve months.
What this practically means
#Executive summary
#Key legal issues
#Unfair termination
The termination was unfair as the Respondent did not call witnesses or prove reasons for termination
Section 43(1) of the Employment Act places the burden on the employer to prove reasons for termination. The Respondent chose not to call any witnesses and only introduced contentious matters of fact in final submissions. The Claimant's claim of unfair termination therefore went unchallenged and succeeded, warranting compensation under Section 49 considering length of service and the manner of termination.
Limitation of leave pay claim
The leave pay claim is time barred under Section 90 of the Employment Act
Failure to grant annual leave is a continuing injury, attracting the twelve-month limitation period from cessation. Reckoning from termination on 11th April 2017, the claim should have been filed by 10th April 2018; the Memorandum of Claim was filed on 22nd June 2018, placing it outside the statutory period, which admits no extension.
House allowance
Claim disallowed since the daily wage was ordinarily inclusive of house allowance
The Claimant's own testimony that he was paid a daily wage, which ordinarily includes a house allowance component, defeated the claim for house allowance. No evidential basis was laid for the claim and it was disallowed.
Severance pay
Claim for severance pay fails as redundancy was not pleaded
Severance pay is payable only in redundancy situations. The Claimant did not plead redundancy, and no basis was laid for the severance claim; it was therefore rejected.
Legal principles established
#- Where the employer fails to call evidence to prove the reasons for termination, the termination is deemed unfair
- Section 90 of the Employment Act leaves no room for extension of time
- Failure to grant annual leave is a continuing injury, and a claim must be brought within twelve months of cessation
Court orders
#- 1.Judgment entered in favour of the Claimant for 8 months' salary in compensation (Kshs.197,808) and 1 month's salary in lieu of notice (Kshs.24,726), total Kshs.222,534
- 2.Interest at court rates from the date of judgment until payment in full
- 3.Issuance of a certificate of service to the Claimant
- 4.Costs of the case to the Claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (employment contract termination claim)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Ndiga v Aquavita Limited (Cause E689 of 2024) [2025] KEELRC 2195 (KLR)[2025] KEELRC 2195 (KLR)24 Jul 2025
Cite this brief
#Cite this brief
Caselaw, "Chimera Chimoyo Alfan v Steel Makers Limited [2021] KEELRC 1018 (KLR)", Case Analysis (2021). Cause No 435 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1018/eng@2021-09-16
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.