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ELRCPartially AllowedELRC Cause (Memorandum of Claim dated 7th April 2016)· [2021] KEELRC 1786 (KLR)

John Malonza Nzeva v Directors of Imani Hotel [2021] KEELRC 1786 (KLR)

Employment and Labour Relations Court
30 April 2021
2,355 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 awarded a cook Kshs.138,462 for unfair termination, but cut claims he couldn't prove with evidence.

What this practically means

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Executive summary

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This was an undefended employment claim before the Employment and Labour Relations Court at Nairobi, in which the Claimant, a cook/chef employed by the Respondent from about January 2006 until 22nd February 2016 at a final monthly salary of Kshs.10,000, sought compensation for unfair and unlawful termination. The Respondent, though served, neither entered appearance nor filed a defence, and the matter proceeded undefended on 24th November 2020 after the Court certified proper service. The Court framed three issues: existence of an employment relationship, the fairness of the termination, and entitlement to reliefs. Although the Claimant had no documentary proof of employment, the Court held that the Respondent's advocates' response to the demand letter admitted the employment relationship. On fairness, the Court found the Respondent had not complied with Sections 40, 41 or 43 of the Employment Act, 2007, rendering the termination unfair under Section 45, and applied the principle that termination requires both substantive justification and procedural fairness. It also noted, following the Mutinda Mule decision, that parties are bound by their pleadings. The Claimant was awarded Kshs.8,462 for 22 days worked in February 2016, Kshs.10,000 in lieu of notice, and maximum compensation of Kshs.120,000 for unfair termination, totalling Kshs.138,462, with costs, interest at court rates, and a certificate of service. Claims for leave, service pay and overtime failed for want of proof and particulars. Judgment was delivered on 30th April 2021 by Maureen Onyango, J.

Key legal issues

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01

Existence of employer-employee relationship

Holding

An employment relationship existed between the Claimant and the Respondent, established by the Respondent's own advocates' letter admitting employment

Reasoning

Though the Claimant had no documentary proof of employment, the Respondent's counsel's response to the demand letter admitted that the Claimant was employed as a cook for the period claimed. The Court treated that admission as proof of the employment relationship, sufficing in an undefended claim.

p. 3
02

Fairness of the termination by way of redundancy

Holding

The termination was unfair and unlawful because the Respondent failed to comply with Sections 40, 41 and 43 of the Employment Act, 2007

Reasoning

The Respondent adduced no evidence of compliance with the redundancy procedure under Section 40 or with the procedural fairness requirements of Section 41. Though redundancy was only raised in the Respondent's demand-letter reply, not pleaded in the claim, the Court found on the evidence that the termination lacked both substantive justification and procedural fairness under Section 45.

p. 4
03

Reliefs recoverable on unfair termination

Holding

The Claimant was awarded February salary (22 days), one month's notice pay under Section 35, and the maximum 12 months' compensation for unfair termination; leave, service pay and overtime claims were dismissed for want of proof

Reasoning

On an undefended claim, heads of claim still require proof. Unproved heads (leave, service pay, overtime) failed. Salary for days worked, notice pay and compensation were awarded, the Court granting the statutory maximum 12 months' compensation given the length of service and the Claimant's lack of contribution to the termination.

p. 4

Legal principles established

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  • A valid termination of employment requires both substantive justification and procedural fairness
  • Parties are bound by their pleadings and evidence at variance with the pleadings must be disregarded
  • In an undefended claim, the claimant must still establish the employment relationship and heads of claim on the evidence

Court orders

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  1. 1.A declaration that the Claimant's termination was unlawful, unfair and contrary to Section 45 of the Employment Act, 2007
  2. 2.Payment of 22 days worked in February 2016 in the sum of Kshs.8,462.00
  3. 3.One month salary in lieu of notice in the sum of Kshs.10,000.00
  4. 4.Compensation for unlawful termination in the sum of Kshs.120,000.00 (total award Kshs.138,462.00)
  5. 5.Costs and interest at Court rates from the date of Judgment until settlement in full
  6. 6.The Respondent to issue to the Claimant a Certificate of Service

Authorities

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Legislation

  • Employment Act, 2007Sections 35, 35(6), 40, 41, 43, 45
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of Kenya, 2010Articles 159(2)(d) and 48

Cases cited (4)

  • Mary Nyawira Karimi v Pure Circle (K) Ltd
    (2018) eKLR
  • Independent Electoral and Boundaries Commission & Another v Stephen Mutinda Mule & 3 Others
    (2014) eKLR
  • Adetoun Oladeji (NIG) v Nigeria Breweries PLC
    SC 91/2002
  • Walter Ogal Anuro v Teachers Service Commission
    (2013) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (employment dispute)

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, "John Malonza Nzeva v Directors of Imani Hotel [2021] KEELRC 1786 (KLR)", Case Analysis (2021). ELRC Cause (Memorandum of Claim dated 7th April 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1786/eng@2021-04-30

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