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ELRCDismissedCause No 97 of 2019· [2023] KEELRC 231 (KLR)

Barasa v Giza Systems Integration Kenya Limited t/a Giza Systems Smart Solutions (Cause 97 of 2019) [2023] KEELRC 231 (KLR)

Employment and Labour Relations Court
27 January 2023
2,471 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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What this practically means

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Executive summary

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The claimant, employed by the respondent as a Project Manager from July 1, 2016, sued over the termination of his employment on December 20, 2018, alleging unlawful and unfair termination. He sought reinstatement or, in the alternative, Kshs 5,535,524.80 comprising severance pay, compensatory damages equivalent to twelve months' gross salary, leave balance and general damages. He attributed his termination to his refusal to assist his supervisor with a professional certificate, alleging the supervisor was working in the country illegally. The respondent maintained the termination was for non-performance, following a notice to show cause and a disciplinary hearing, and that the claimant admitted under-performance, accepted termination, and executed a Deed of Release, Discharge and Indemnity dated December 21, 2018 in full and final settlement after receiving Kshs 920,235. The court framed three issues and determined that the Deed of Release was dispositive. The claimant's assertion, raised for the first time under cross-examination, that he was forced to sign, was rejected as an unpleaded afterthought lacking particulars, the court applying authority that an employee alleging duress must plead and prove details of it. Relying on the Court of Appeal's decision in Coastal Bottlers v Kimathi Mithika and Trinity Prime Investment, the court held that the Deed was a binding contract, that it discharged the respondent from all claims connected with the employment, and that the claimant was estopped from suing for further reliefs. The court found it unnecessary to examine the fairness of the termination. The suit was dismissed in its entirety with each party bearing its own costs.

Key legal issues

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01

Whether the Deed of Release, Discharge and Indemnity absolved the respondent from further liability

Holding

The Deed was signed voluntarily by the claimant with full knowledge of its import, and it discharged the respondent from all claims connected with the employment; the claimant was estopped from suing for further reliefs

Reasoning

The claimant admitted under cross-examination that he signed the Deed and received payment, but only first raised the plea that he was forced to sign during cross-examination. He never pleaded duress in his pleadings, filed no reply to the respondent's assertions, and pleaded no particulars of duress. As a Project Manager he was well aware of the document. The court applied Court of Appeal authority that a settlement agreement is a binding contract to which effect must be given.

p. 4
02

Whether the claimant's termination was unfair and unlawful

Holding

The court declined to determine this issue because the binding Deed of Release rendered the inquiry unnecessary

Reasoning

Having found the Deed of Release binding and effective to discharge the respondent from all claims connected with the employment, the court held that examining the fairness of the termination would be illogical. The release preceded any consideration of the termination's fairness.

p. 5
03

Whether the claimant was entitled to the reliefs sought

Holding

The claimant was not entitled to any relief; the suit was dismissed in its entirety with each party bearing its own costs

Reasoning

Because the Deed of Release constituted a complete contract freely executed, and in the absence of any vitiating element such as duress, misrepresentation or fraud, the claimant was estopped from bringing a suit seeking further reliefs connected to his employment.

p. 5

Legal principles established

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  • A settlement agreement or deed of release constitutes a binding contract between the parties, which the court must give effect to, and an employee who signs it without vitiating elements is estopped from instituting further claims arising from the employment
  • An employee alleging duress or inducement to sign a document in a non-custodial environment must provide particulars of such duress; it is not enough to say 'I was forced'

Court orders

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  1. 1.The suit is dismissed in its entirety
  2. 2.Each party to bear its own costs

Authorities

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Legislation

  • Employment ActNot specified
  • Civil Procedure Act (Chapter 21 of the Laws of Kenya)Section 1B
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (8)

  • Kenfreight (EA) Limited v Benson K Nguti
    (2019) eKLR
  • Paul Katuku Muthengi v SMEP Microfinance Bank Limited
    (2021) eKLR
  • Coastal Bottlers Limited v Kimathi Mithika
    Civil Appeal No 21 of 2017; [2018] eKLR
  • Ephraim Gaitho Githongori v Timaflor Limited
    Cause No 52 of 2018
  • Gilbert Mugambi v Michimikuru Tea Factory Limited
    Cause No 20 of 2017
  • John Karanja Muiruri v Njuca Consolidated Company Limited
    Cause No 204 of 2017
  • Wenslaus Oduki Odinga v Kenyatta National Hospital Board
    [2013] eKLR
  • Trinity Prime Investment Limited v Lion of Kenya Insurance Company Limited
    [2015] eKLR
Jurisdiction invoked
Jurisdiction of the Employment and Labour Relations Court over employment disputes (no specific provision invoked in the judgment)

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, "Barasa v Giza Systems Integration Kenya Limited t/a Giza Systems Smart Solutions (Cause 97 of 2019) [2023] KEELRC 231 (KLR)", Case Analysis (2023). Cause No 97 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/231/eng@2023-01-27

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