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ELRCDismissedE&LRC Petition (amended 28th May 2021)· [2022] KEELRC 66 (KLR)

Wanyahora v Mediamax Network Limited (Petition E030 of 2020) [2022] KEELRC 66 (KLR)

Employment and Labour Relations Court
27 May 2022
1,451 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that Covid-19 disruptions excused an employer's delayed salaries, and a pandemic-forced resignation does not count as constructive dismissal.

What this practically means

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Executive summary

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The Petitioner, employed by the Respondent from 1st August 2008 and rising to IT Manager, petitioned the Employment and Labour Relations Court alleging that the Respondent's failure to pay his salary for April to July 2020 during the Covid-19 pandemic violated Articles 41 and 30 of the Constitution, amounted to constructive dismissal, and breached Article 47 on fair administrative action. He sought declarations, 12 months' salary for unfair termination, service pay, 157.75 accumulated leave days, compensation for pain and suffering, a Certificate of Service, and mandamus orders. The Respondent, through its CEO's Replying Affidavit, explained that Covid-19 caused financial loss; it proposed pay cuts, and employees filed E&LRC Petition No. 59 of 2020, culminating in a consent judgment of 10th June 2020 endorsing redundancy. Delayed salaries were paid per the court orders, and the leave days were paid in three instalments. The Respondent conceded the Certificate of Service. The court held that the Petitioner was bound by the consent judgment in Petition No. 59 of 2020, having never sought to be struck out of it. On the merits, the court found that delay in salary payment did not violate Article 41 given the pandemic's external force; resignation compelled by Covid-19 was not constructive dismissal, following Coca Cola East & Central Africa Limited v. Maria Kagai Ligaga; resignation was not unfair termination; and no liability arose for an act of force majeure. The Petition was declined with no order on costs.

Key legal issues

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01

Binding effect of the consent judgment in Petition No. 59 of 2020

Holding

The Petitioner is bound by the consent judgment and orders of 10th June 2020 in Petition No. 59 of 2020 despite claiming he never authorised the petitioners therein

Reasoning

The court had recently found that disputes arising from the redundancy at the Respondent's business were compromised in Petition No. 59 of 2020 through a consent judgment. Other petitions by employees caught in the same redundancy were declared compromised. The Petitioner, alleging he did not donate authority, never applied to have his name struck out from that petition, so he remains bound by its orders.

p. 3
02

Whether delayed salary payment violated Articles 41 and 30

Holding

The delay in paying salaries did not violate Article 41 and did not amount to slavery, servitude or forced labour

Reasoning

The Respondent demonstrated that Covid-19 adversely affected its business worldwide. It took measures to stay afloat, including proposing pay cuts, and the employees went to court, resulting in a consent judgment endorsing redundancy. Delayed salaries were eventually paid. Given the known financial difficulties occasioned by the pandemic, it was not reasonable for an employee to insist on full salary as it fell due.

p. 3
03

Constructive dismissal

Holding

The Petitioner's resignation did not amount to constructive dismissal

Reasoning

It is a misapprehension of constructive dismissal to attribute workplace circumstances created by external factors such as a pandemic to the employer. The Respondent did not create the unbearable work environment. Although the Petitioner may not have resigned voluntarily, he was compelled by Covid-19, an unexpected external force, not by the Respondent, as elucidated in the Coca Cola v Ligaga decision.

p. 3
04

Whether resignation amounted to unfair or unlawful termination

Holding

The resignation did not amount to unfair or unlawful termination

Reasoning

The Petitioner resigned because he disagreed with the measures the Respondent took in response to Covid-19. By the time of his resignation on 1st July 2020, the court had already decreed that parties were free to disengage through redundancy, and the Petitioner could have opted to exit through redundancy instead of resigning.

p. 4

Legal principles established

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  • An employee who was caught up in a redundancy situation compromised by a consent judgment in a co-employees' petition is bound by the orders in that petition unless he moves the court to be struck out of it
  • Circumstances at the workplace created by external factors such as a pandemic cannot be attributed to the employer for purposes of constructive dismissal
  • No employer liability arises for delay in contractual obligations occasioned by an act of force majeure such as Covid-19

Court orders

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  1. 1.The Petition is declined
  2. 2.No order on the costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 30
  • Constitution of Kenya, 2010Article 47
  • Fair Administrative Action ActSection 4
  • Employment Act

Cases cited (2)

  • Mercy Milanoi & 36 others [suing on their behalf & 164 others] v. Mediamax Network Limited
    E&LRC Petition No. 59 of 2020
  • Coca Cola East & Central Africa Limited v. Maria Kagai Ligaga
    [2015] e-KLR
Jurisdiction invoked
Original constitutional jurisdiction of the Employment and Labour Relations Court over alleged violations of Articles 30, 41 and 47 of the Constitution read with the Employment Act and Fair Administrative Action Act

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, "Wanyahora v Mediamax Network Limited (Petition E030 of 2020) [2022] KEELRC 66 (KLR)", Case Analysis (2022). E&LRC Petition (amended 28th May 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/66/eng@2022-05-27

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