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ELRCDismissedNot stated in the judgment as provided· [2023] KEELRC 1550 (KLR)

Theobald v Osani Community Health and Development Centre (Cause E005 of 2023) [2023] KEELRC 1550 (KLR)

Employment and Labour Relations Court
29 June 2023
899 words in judgment
View original judgmentRead on Kenya Law Watch case
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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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This ruling of the Employment and Labour Relations Court at Kisumu (C. N. Baari J, delivered June 29, 2023) determined a preliminary objection dated February 2, 2023, by which the Respondent sought the striking out of the Claimant's suit on the ground that the dispute was a pure commercial/medical consultancy contract dispute, not an employment relationship, so the Court lacked jurisdiction. The Claimant, through a replying affidavit, asserted he was employed as a medical superintendent under a contract dated July 15, 2021, effective July 19, 2021, at a gross salary of Kshs 90,000, renewed in March 2022 with salary reviewed to Kshs 111,000. He argued the objection raised contested factual issues unsuitable for preliminary determination. The Court framed a single issue: whether it had jurisdiction to hear the suit. Applying the Mukisa Biscuit Manufacturing Co Ltd v West End Distributors Ltd threshold, the court held that a preliminary objection must be a pure point of law decided on the assumption that pleaded facts are correct. Since the existence of an employer/employee relationship was contested and was a matter of fact requiring evidence, drawing on Everret Aviation Ltd v Kenya Revenue Authority and Ibrahim Ulalo v Nation Media Group, the objection could not succeed. The court concluded that the objection did not meet the Mukisa Biscuit threshold, lacked merit, and dismissed it, with costs in the cause.

Key legal issues

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01

Whether the preliminary objection on jurisdiction meets the Mukisa Biscuit threshold

Holding

No. Whether the claimant was an employee or a consultant is a contested factual question requiring evidence at a hearing, so the objection is not a pure point of law and is dismissed.

Reasoning

The court applied the Mukisa Biscuit definition that a preliminary objection must raise a pure point of law on the assumption that all facts pleaded are correct, and cannot be raised if any fact has to be ascertained. Citing Kimondo J in Everret Aviation and Ibrahim Ulalo v Nation Media Group, it held that the nature of the relationship between the parties is a matter of fact requiring evidence. The claimant produced an appointment contract with terms of service, contesting the consultancy characterisation. The dispute could only be conclusively determined upon hearing both parties, so the objection failed.

p. 3
02

Whether the relationship between the parties was a contract of service or a contract for services

Holding

This question could not be determined on the papers; it is a factual matter requiring evidence.

Reasoning

The respondent argued the claimant was engaged under a medical consultancy contract; the claimant asserted employment as medical superintendent under a contract dated July 15, 2021, renewed in March 2022, with salary progression from Kshs 90,000 to Kshs 111,000. Following Everret Aviation, the court noted the traditional control and integration tests are no longer conclusive and the form of documentation and mode of payment are critical, matters requiring evidence at a hearing rather than determination at the preliminary stage.

p. 2

Legal principles established

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  • Where the existence of an employer/employee relationship is contested, it is a matter of fact that can only be determined upon a hearing, and cannot be resolved by preliminary objection

Court orders

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  1. 1.The preliminary objection is dismissed
  2. 2.Costs shall be in cause

Authorities

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Cases cited (3)

  • Mukisa Biscuit Manufacturing Co Ltd vs West End Distributors Ltd
    [1969] EA 696
  • Everret Aviation limited vs The Kenya Revenue Authority
    (2013) eKLR
  • Ibrahim Ulalo v Nation Media Group
    (2019) eKLR
Jurisdiction invoked
Jurisdiction of the Employment and Labour Relations Court over employment disputes, contingent on existence of an employer/employee relationship

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, "Theobald v Osani Community Health and Development Centre (Cause E005 of 2023) [2023] KEELRC 1550 (KLR)", Case Analysis (2023). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1550/eng@2023-06-29

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