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ELRCDismissedCause No E162 of 2021· [2023] KEELRC 2337 (KLR)

Beru v Music Copyright Society of Kenya Limited (Cause E162 of 2021) [2023] KEELRC 2337 (KLR)

Employment and Labour Relations Court
5 October 2023
1,101 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled that financial hardship alone does not force a resignation, dismissing an employee's constructive dismissal claim in full.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Licensing Officer from April 2008 and deployed across various branches including Meru, alleged constructive dismissal after the Respondent failed to pay his basic salary and house allowance on 25th January 2018 and 25th February 2018. He tendered his resignation on 28th February 2018 and claimed notice pay, 12 months' compensation, unremitted NSSF and NHIF dues, service pay for 10 years, and a certificate of service. The Respondent, a Collective Management Organization under the Copyright Act, denied breach of contract, asserting that the Claimant resigned voluntarily and that its licence for 2017 had been denied, rendering it unable to meet its obligations. The court framed two issues: constructive dismissal and entitlement to remedies. Defining constructive dismissal as employer conduct making the work environment intolerable, the court noted the Claimant's resignation letter disclosed his awareness of the Respondent's difficulties, and he admitted the licence withdrawal made operations impossible. Finding no wrongdoing by the Respondent, the court held the Claimant could not claim he was forced to resign. The NSSF and NHIF claims were unproved and, in any event, payable to the statutory bodies. No basis was established for service pay. The entire claim was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether the Claimant established constructive dismissal

Holding

No constructive dismissal established; the resignation was not forced by the Respondent's conduct

Reasoning

The court defined constructive dismissal as conduct rendering employment intolerable. The Claimant's own resignation letter disclosed awareness of the Respondent's financial difficulties following withdrawal of its licence. He admitted the licence had been withdrawn, making operations impossible. No wrongdoing by the employer was suggested, so no repudiatory breach forcing resignation was made out.

p. 4
02

Entitlement to remedies - notice pay, compensation, service pay, statutory dues

Holding

All remedies refused as consequential to failure of the constructive dismissal claim and failure of proof

Reasoning

Having found no constructive dismissal, claims for notice pay and compensation lacked basis. NSSF and NHIF claims were unproved and in any event lie to the statutory bodies. Service pay was unsupported. The certificate of service and costs likewise fell away, with each party bearing own costs.

p. 4

Legal principles established

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  • Constructive dismissal occurs where an employer's conduct makes the work environment so intolerable that the employee has no option but to leave employment

Court orders

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  1. 1.Dismissal of the claims for compensation and notice pay
  2. 2.Dismissal of the claims for unremitted NSSF and NHIF dues
  3. 3.Disallowance of the claim for service pay
  4. 4.Dismissal of the Claimant's entire claim
  5. 5.Each party to bear their own costs

Authorities

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Legislation

  • Copyright ActNo. 12 of 2001

Cases cited (3)

  • Emmanuel Mutisya v Agility Logistics
    Cause No 1448 of 2011
  • Max Masoud Roshankar & another v Sky Aero Limited
    [2015] eKLR
  • Joseph Aleper & another v Lodwar Water and Sanitation Company Limited
    [2016] eKLR
Jurisdiction invoked
Employment and labour relations dispute before the Employment and Labour Relations Court

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, "Beru v Music Copyright Society of Kenya Limited (Cause E162 of 2021) [2023] KEELRC 2337 (KLR)", Case Analysis (2023). Cause No E162 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2337/eng@2023-10-05

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