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ELRCPartially AllowedStatement of Claim dated 14th February 2018· [2023] KEELRC 2492 (KLR)

Salim v Xplico Insurance Company Limited (Cause 178 of 2018) [2023] KEELRC 2492 (KLR)

Employment and Labour Relations Court
3 October 2023
2,005 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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The Claimant was employed by the Respondent as a Marketing Co-ordinator with effect from 1st October 2013 at a starting salary of ksh 100,000/-, rising over time to ksh 172,000/-. By a letter dated 28th July 2017, the Respondent, citing restructuring and unsatisfactory performance, terminated her services with immediate effect, without one month's notice or pay in lieu of notice and without a hearing. The Claimant sued for a declaration that the termination was unlawful and unfair, damages, salary arrears, leave travel allowance, loan and pension deductions, unutilised leave days, 12 months' salary as compensation, costs and a Certificate of Service. The Respondent filed a Response denying unfair termination but called no witness at the hearing, and the defence case was closed; it also filed no submissions. The court found the Claimant's evidence uncontroverted and credible, noting her record of salary increments was inconsistent with poor performance. The Respondent followed neither section 40 (if redundancy) nor section 41 (if poor performance) of the Employment Act, so the termination was unfair, null and void ab initio, entitling the Claimant to recompense under section 49. Judgment was entered for the Claimant for ksh 516,000/- outstanding salary for three months, ksh 103,200/- for 18 leave days and ksh 516,000/- being three months' salary as compensation, with interest at court rates from the date of judgment, costs of the suit and a Certificate of Service. Other heads of claim were not awarded.

Key legal issues

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01

Procedural and substantive fairness of the termination

Holding

The termination was wrongful and unfair: the Respondent gave no one month's notice or pay in lieu, gave no valid reason, and followed neither section 40 (if redundancy) nor section 41 (if poor performance).

Reasoning

The letter of 28th July 2017 cited restructuring and unsatisfactory performance but did not give one month's notice or pay in lieu. The Claimant's record included successive salary increments, inconsistent with poor performance. The Respondent followed neither the contractual termination clause nor sections 40 or 41 of the Employment Act, rendering the termination null and void and entitling the Claimant to recompense under section 49.

p. 4
02

Effect of the Respondent's failure to call evidence

Holding

The Claimant's evidence stood uncontroverted and unchallenged and was thus credible and proved on a balance of probability.

Reasoning

The Respondent did not call any witness and the defence case was closed. Relying on section 107 of the Evidence Act and precedent, the court accepted that where a defendant adduces no evidence, the plaintiff's evidence is to be believed, since allegations by the defence are not evidence and untested evidence remains unchallenged and uncontroverted.

p. 3

Legal principles established

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  • Termination for poor performance must comply with sections 41, 43 and 45 of the Employment Act; an employer relying on poor performance must have put in place a policy or practice for measuring performance
  • Where a defendant does not adduce evidence, the plaintiff's uncontroverted evidence is credible and may be acted upon

Court orders

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  1. 1.Judgment for the Claimant against the Respondent for ksh 516,000/- being outstanding salary for 3 months
  2. 2.ksh 103,200/- for 18 leave days
  3. 3.ksh 516,000/- being 3 months salary as compensation for unfair and unlawful termination
  4. 4.Interest at court rates on the sums above from the date of judgment till payment in full
  5. 5.Costs of the suit to the Claimant
  6. 6.Certificate of service

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 41(2)
  • Employment Actsection 43
  • Employment Actsection 45
  • Employment Actsection 49
  • Employment Actsection 40
  • Evidence Act (Cap 80) Laws of Kenyasection 107

Cases cited (6)

  • Fredrick Odongo Owegi v CFC Life Assurance Limited
    [2014] eKLR
  • Anthony Mkala Chitavi v Malindi Water & Sewerage Company Ltd
    [2013] eKLR
  • National Bank of Kenya v Samuel Nguru Mutonya
    [2019] eKLR
  • Jane Samba Mukala v Ol Tukai Lodge Limited
    [2013] eKLR
  • Edward Mariga through Stanley Mobisa Mariga v Nathaniel David Schulter & another
    [1997] eKLR
  • Karuru Munyororo v Joseph Ndumia Murage
    [1988] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (sections 41, 43, 45 and 49) over the claim of unfair and wrongful termination

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, "Salim v Xplico Insurance Company Limited (Cause 178 of 2018) [2023] KEELRC 2492 (KLR)", Case Analysis (2023). Statement of Claim dated 14th February 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2492/eng@2023-10-03

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