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ELRCDismissedNot stated in the judgment· [2021] KEELRC 1871 (KLR)

Shadrack Musyoka v Middle East Bank Kenya Limited [2021] KEELRC 1871 (KLR)

Employment and Labour Relations Court
8 April 2021
2,211 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed a banker's bid to block his dismissal because he never asked for an injunction in his actual lawsuit.

What this practically means

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Executive summary

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The claimant, a bank employee served with three months' notice of termination on grounds of poor performance effective 21.1.2021, brought an application dated 15.1.2021 seeking a temporary injunction restraining the respondent bank from implementing the termination and from enforcing the termination letter of 23rd October 2020 pending the hearing of his suit, in which he sought reinstatement. He argued he was maliciously targeted, denied a fair hearing and a Performance Improvement Plan contrary to section 41 of the Employment Act, and would suffer irreparable loss as he was over 55 years old. The respondent opposed through a preliminary objection under Rule 17(5) of the ELRC Procedure Rules, contending injunction was not a relief in the suit, and on the merits relying on Giella v Cassam Brown and Mrao v First American Bank, arguing damages were adequate given the claimant's quantified claim of Kshs 54,277,524, and that reinstatement is not an automatic remedy per Kenya Power v Aggrey Wasika and Kenya Airways v Aviation & Allied Workers Union. The court upheld the preliminary objection, holding that under Rule 17(5) an interlocutory injunction can only be granted where injunction is sought in the suit itself. On the merits, the court found a prima facie case from unrebutted allegations but held no irreparable harm was shown since the loss was quantified in money, and that the balance of convenience did not favour the applicant, the employment relationship having broken down. The application was dismissed with costs in the cause.

Key legal issues

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01

Competency of the application under Rule 17(5) of the ELRC Procedure Rules

Holding

The application is incompetent because the claimant sought temporary and permanent injunction only in the motion and not in the suit

Reasoning

Rule 17(5) permits an interim or temporary injunction in a suit where an injunction is sought. The literal interpretation is that interim or temporary injunction can only be sought and granted if the applicant has sought an injunction order in the suit itself. Since the claimant's suit did not plead injunction, the drafters intended to bar such a party from seeking an interlocutory injunction by motion. The court agreed with the respondent's preliminary objection and held the application incompetent.

p. 2
02

Prima facie case

Holding

The unrebutted allegations of unfair termination established a prima facie case with chances of success

Reasoning

The applicant alleged unfair termination: performance not properly measured, no mutually set targets, no hearing, no PIP. These factual allegations were not rebutted by any replying affidavit and therefore remain for trial. Applying the Mrao definition, the applicant had a genuine and arguable case with a right allegedly infringed calling for explanation or rebuttal, satisfying the first Giella limb.

p. 3
03

Irreparable harm and balance of convenience

Holding

No irreparable harm was proved and the balance of convenience did not favour the applicant

Reasoning

The harm alleged was unfair termination, which the claimant himself quantified at Kshs 54,277,524, showing damages are an adequate remedy. Further, granting the application would amount to specific performance of the contract of service, which under section 49(d) of the Employment Act requires exceptional circumstances not demonstrated. The correspondence showed the relationship had become toxic and broken down, so the balance of convenience did not tilt in the applicant's favour.

p. 3

Legal principles established

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  • Under Rule 17(5) of the ELRC Procedure Rules, an interim or temporary injunction can only be sought and granted if the applicant has sought injunction in the suit
  • Irreparable harm refers to injury which cannot be quantified in monetary value or adequately compensated by damages; where the loss is quantified in monetary terms, no irreparable harm is established
  • Specific performance of a contract of service may only be ordered in exceptional circumstances under section 49(d) of the Employment Act

Court orders

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  1. 1.The claimant's application dated 15.1.2021 seeking a temporary injunction restraining the respondent from implementing the termination of employment is dismissed
  2. 2.Costs shall be in the cause

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 49(d)
  • Employment and Labour Relations Court (Procedure) Rulesrule 17(5)
  • Employment and Labour Relations Court (Procedure) Rulesrule 28(3)
  • Constitution of KenyaArticle 47
  • Constitution of KenyaArticles 49 and 50

Cases cited (6)

  • Stephen Mbugua Chege Vs Nairobi City Water & Sewerage Co Ltd
    [2017] eKLR
  • Jediah M. Mwarania Vs Kenya Reinsurance Corporation Ltd
    2016 eKLR
  • Giella Vs Cessman Brown
    [1973] EA 358
  • Mrao Vs First American Bank of Kenya
    [2003] KLR 125
  • Kenya Power & Lighting Company Limited Vs Aggrey Wasika
    [2017] eKLR
  • Kenya Airways Limited Vs Aviation & Allied Workers Union
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court Procedure Rules, rule 17, in a suit for unfair termination of employment

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Shadrack Musyoka v Middle East Bank Kenya Limited [2021] KEELRC 1871 (KLR)", Case Analysis (2021). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1871/eng@2021-04-08

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