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ELRCDismissedCause No 212 of 2018· [2023] KEELRC 905 (KLR)

Loko v Ouma (Cause 212 of 2018) [2023] KEELRC 905 (KLR)

Employment and Labour Relations Court
19 April 2023
2,916 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan domestic worker's unfair termination claim failed because a settlement she signed before a Labour Officer waived all further claims against her employer.

What this practically means

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Executive summary

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The Claimant, employed as a domestic worker from September 2013 to April 2017, sued for pay in lieu of notice, leave for three years, service pay, costs and interest, alleging unfair and wrongful termination. She travelled upcountry for Easter 2017, her phone lost charge, and she reported back a day late on April 18, 2017, spending the night outside the Respondentundefineds gate before being handed a termination notice on April 19, 2017. The Respondent contended the Claimant absconded duty and was summarily dismissed, and that a certificate of payment dated May 10, 2017, executed before the County Labour Officer and totalling Kshs 21,500, settled all dues in full and final settlement. The court framed three issues: whether the termination was unfair or the Claimant deserted; entitlement to reliefs; and whether the certificate of payment discharged the Respondent. The court found the Respondent failed to prove desertion since the Claimant returned to work, but also found the dismissal was substantively justified because the Claimant neglected to notify the employer of her delay. However, the summary dismissal without notice or hearing breached procedural fairness under Section 41 of the Employment Act. Despite that finding, the court upheld the settlement agreement, holding the Claimant executed it freely and voluntarily with full knowledge, pleading no misrepresentation, duress, undue influence or mistake, and thereby waived all further claims. The suit was dismissed with no orders as to costs.

Key legal issues

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01

Whether the Claimant deserted duty or was unfairly terminated

Holding

The Respondent failed to demonstrate desertion; the Claimant reporting one day late showed no intention to desert, but the termination lacked procedural fairness

Reasoning

The court applied the dictionary and Seabolo definitions of desertion requiring intention not to return. The Claimant communicated with the Respondent and reported for duty when called, negativing desertion. Substantively, her failure to notify the employer justified termination, but the summary dismissal without notice or hearing breached Section 41 procedural fairness requirements.

p. 4
02

Whether the certificate of payment discharged the Respondent from further claims

Holding

Yes - the Claimant voluntarily executed the settlement in the presence of the County Labour Officer and thereby waived further claims

Reasoning

Applying Coastal Bottlers and Thomas De La Rue, the court examined whether the discharge was voluntary and informed. The Claimant pleaded no misrepresentation, duress, undue influence or mistake, adduced no evidence of bias by the Labour Officer, received payment gladly and sued nine months later. The court was bound to give effect to the parties' intentions.

p. 7
03

Whether the Claimant was entitled to the reliefs sought (notice pay, leave, service pay)

Holding

No - the suit was dismissed in its entirety as the settlement agreement waived all further claims

Reasoning

Having upheld the certificate of payment as a valid, binding and voluntary settlement executed before a government officer, no residual entitlement to pay in lieu of notice, leave or service pay survived. The Claimant's unsupported allegations of bias could not vitiate the agreement, and she could have withdrawn her Labour Office complaint but did not.

p. 7

Legal principles established

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  • A valid termination of employment requires both substantive justification and procedural fairness
  • Desertion is distinguishable from absence without leave by the employeeundefineds intention not to return
  • A settlement agreement or discharge voucher bars further claims where it was voluntarily executed by parties aware of its import
  • Even an absconding employee is entitled to a fair disciplinary process under Section 41 of the Employment Act

Court orders

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  1. 1.The suit herein is dismissed with no orders as to costs.

Authorities

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Legislation

  • Employment ActSection 49(1)(c)
  • Employment ActSection 41
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B

Cases cited (12)

  • Josephat Otieno Kongo V Riley Services Ltd
    (2022) eKLR
  • Koech v Kipkales & another t/a Kale Maina & Bundotich Advocates
    (2022) eKLR
  • Jasbir Singh Rai & 3 another v Tarlochan Singh Rai & 4 others
    (2014) eKLR
  • Seabolo V Belgravia Hotel
    (1997) 6 BLLR 829 (CCMA)
  • Felistas Acheha Ikatwa v Charles Peter Otieno
    (2018) eKLR
  • Judith Atieno Owuor v Sameer Agriculture and Livestock Ltd
    (2020) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2013) eKLR
  • Coastal Bottlers Co. Ltd v Kimathi Mithika
    (2018) eKLR
  • Krystalline Salt Ltd V Kwekwe Mwakele & 67 others
    (2017) eKLR
  • Thomas De La Rue V David Opondo Omutelema
    (2013) eKLR
  • Trinity Prime Investment Ltd V Lion of Kenya Insurance Co. Ltd
    (2015) eKLR
  • Damodar Jihabhai & Co. Ltd & another V Eustace Sisal Estates Ltd
    (1967) EA 153
Jurisdiction invoked
Original employment and labour relations jurisdiction under the Employment Act, 2007 (courtundefinedfirst-instance unfair termination claim)

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, "Loko v Ouma (Cause 212 of 2018) [2023] KEELRC 905 (KLR)", Case Analysis (2023). Cause No 212 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/905/eng@2023-04-19

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