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ELRCDismissedNot stated in judgment· [2021] KEELRC 1580 (KLR)

Jacob Alemu Zewde v Sauti Moja Marsabit & another [2021] KEELRC 1580 (KLR)

Employment and Labour Relations Court
16 June 2021
1,394 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court ruled that an employer's legal structure, even an unincorporated community organization, cannot stop an employee's claim.

What this practically means

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Executive summary

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This was a preliminary objection dated 18th May 2021 in an employment claim before the Employment and Labour Relations Court at Nyeri, decided by D.K.Njagi Marete J. The Objector/Respondents, described as a Community Based Organization and its Executive Director, argued that the 1st Respondent was an unincorporated entity/unlawful society lacking legal personality, incapable of being sued in its own name, and that the claim was incompetent and an abuse of court process. They contended that the defect could not be cured by Article 159(2)(d) of the Constitution since capacity was critical in all court processes. Mr. Muriithi for the Claimant opposed the objection, exhibiting a certificate of registration of the Respondent and relying on Section 2 of the Employment Act, 2007, and on the authorities of Issa Shekue Shali vs Buscar Limited (2018) eKLR and Ingwe Wekulo Newton vs Education for Life (2019) eKLR, both holding that an employee need not know the legal or business form of the employer's enterprise, the term 'Employer' being broadly worded to secure access to industrial justice. The court found that the Claimant's authorities substantiated an employment relationship and a valid employment contract inter partes, tilted the outcome in his favour, dismissed the preliminary objection, and directed the parties to expeditiously litigate their cases to fruition. Judgment dated and delivered at Nyeri on 16th June 2021.

Key legal issues

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01

Capacity of an unincorporated entity to be sued in an employment claim

Holding

The preliminary objection fails; the employer's legal structure should not defeat an employee's claim

Reasoning

The court accepted the Claimant's authorities holding that the term 'Employer' under Section 2 of the Employment Act, 2007 is broadly worded to prevent employees being denied industrial justice through complex business forms. The Claimant exhibited a certificate of registration of the Respondent, and the authorities established a valid employment contract inter partes. The objection on capacity was therefore rejected.

p. 2
02

Whether the defect, if any, is cured by Article 159(2)(d) of the Constitution

Holding

Implicitly, the objection on capacity was not sustainable and the claim was permitted to proceed notwithstanding the objection grounded on capacity

Reasoning

The Respondent argued that Article 159(2)(d) could not cure a defect of capacity. The court did not rule on Article 159(2)(d) directly, but found the Claimant's authorities substantiated an employment relationship and dismissed the preliminary objection, allowing the parties to litigate the claim expeditiously.

p. 2

Legal principles established

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  • An employee need not establish the precise legal or business form of the employer's entity; it is sufficient to show employment by the employer's business

Court orders

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  1. 1.The preliminary objection dated 18th May 2021 is dismissed
  2. 2.The parties be and are at liberty to expeditiously litigate their cases to fruition

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 159(2)(d)
  • Employment Act, 2007Section 2

Cases cited (2)

  • Issa Shekue Shali vs Buscar Limited
    (2018) eKLR
  • Ingwe Wekulo Newton vs Education for Life
    2019 eKLR
Jurisdiction invoked
Employment and Labour Relations Court, Employment Act, 2007

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, "Jacob Alemu Zewde v Sauti Moja Marsabit & another [2021] KEELRC 1580 (KLR)", Case Analysis (2021). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1580/eng@2021-06-16

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