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ELRCPartially AllowedNot stated in judgment (Memorandum of Appeal lodged 24 August 2023)

Oduori v JRS Group Ltd (Appeal E050 of 2023) [2024] KEELRC 10 (KLR)

Employment and Labour Relations Court
24 January 2024
1,346 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kisumu court awarded a former security guard over Kshs 1.4 million in unpaid dues, ruling that magistrates' courts can hear such employment claims.

What this practically means

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Executive summary

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The Appellant had sued JRS Group Ltd before the Senior Principal Magistrates Court at Winam for unfair termination and breach of contract. By a judgment delivered on 25 July 2023, the trial magistrate found he had voluntarily retired, dismissed the unfair termination claim, and declined jurisdiction over the retirement benefits/breach of contract claim without giving reasons. On appeal, the Employment and Labour Relations Court at Kisumu (Radido Stephen, J) applied the first-appeal duty to re-evaluate the evidence and agreed that the Appellant voluntarily retired, so no unfair termination occurred. However, it held the magistrate erred in law and fact in declining jurisdiction over the distinct breach-of-contract heads, since the magistrates' court had jurisdiction over employment causes where the employee earned below Kshs 80,000/- per month, and no assertion was made that the Appellant earned more. The court then examined each head: it awarded Kshs 225,262/- in underpayments, the Respondent having admitted paying below the prescribed minimum wages and failing to produce payroll records under sections 10(7) and 20 of the Employment Act; Kshs 1,196,858/- for overtime and rest days, judicially noticing that security guards work 12-hour shifts and the Respondent having failed to controvert the claim or produce section 10(3) records; and Kshs 42,425/- gratuity under Regulation 17 of the Protective Security Services Order after six years of service. The leave allowance claim of Kshs 75,709/- failed for want of evidential or legal foundation. The court noted the breach claims constituted continuing injury under section 90 of the Employment Act. The court set aside the dismissal, entered judgment for the Appellant totaling Kshs 1,464,545/- with interest at court rates, ordered the Respondent to issue a Certificate of Service within 30 days, and awarded the Appellant costs of the appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the Appellant's separation from the Respondent was an unfair termination or a voluntary retirement
  2. 2.Whether the Senior Principal Magistrate erred in declining jurisdiction over the claim for retirement benefits/breach of contract
  3. 3.Whether the Appellant proved underpayments, overtime/rest days, gratuity and leave allowance as heads of breach of contract claim
  4. 4.Whether the Appellant was entitled to a Certificate of Service

Key legal issues

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01

Unfair termination versus voluntary retirement

Holding

The Appellant voluntarily retired and did not prove unfair termination; the trial magistrate's finding on this head was upheld

Reasoning

The Claimant's own testimony and his letter dated 13 May 2022 showed he voluntarily wished to retire. On re-evaluation, the appellate court agreed there was no unfair termination, so awards flowing from unlawful dismissal could not issue on that basis.

p. 2
02

Jurisdiction of the magistrates' court over breach of contract/retirement benefits claims

Holding

The trial magistrate fell into error in declining jurisdiction; the court could entertain such claims where the employee earned below Kshs 80,000/- per month

Reasoning

The Appellant pleaded distinct causes of action in unfair termination and breach of contract (underpayments, overtime, gratuity, leave, house allowance, rest days). No assertion was made that he earned above Kshs 80,000/- per month, so the Senior Principal Magistrates Court had jurisdiction; declining it without reasons was an error of law and fact.

p. 3
03

Underpayments

Holding

Underpayment proved; Kshs 225,262/- awarded

Reasoning

The Respondent's General Manager admitted awareness of the Regulation of Wages (Amendment) Orders 2016-2018 and that the Appellant's Kshs 9,000/- wage was below the prescribed minimum. The Respondent neither challenged the tabulations nor produced payroll records under sections 10(7) and 20 of the Employment Act.

p. 3
04

Overtime and rest days

Holding

Claim of Kshs 1,196,858/- allowed as uncontroverted

Reasoning

As a security guard, the Appellant worked 12-hour shifts seven days a week. The Protective Security Services Order prescribes 52 hours over 6 days, an overtime formula and one rest day weekly. The Respondent did not controvert the claim nor produce records under section 10(3) of the Employment Act.

p. 3
05

Gratuity

Holding

Gratuity of Kshs 42,425/- awarded

Reasoning

After about 6 years of service, Regulation 17 of the Protective Security Services Order entitled an employee with more than 5 years' service to gratuity; the Appellant was thus eligible and entitled.

p. 3
06

Leave allowance

Holding

Claim refused for lack of evidential or legal foundation

Reasoning

Leave allowance is not a benefit prescribed by the Employment Act and the Appellant offered no evidence or legal basis for the Kshs 75,709/- claimed.

p. 4
07

Certificate of Service

Holding

Respondent ordered to issue a Certificate of Service within 30 days

Reasoning

A Certificate of Service is a statutory entitlement of all employees.

p. 4

Legal principles established

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  • On a first appeal, the court re-evaluates, re-assesses and re-analyses the evidence on the record and determines whether the conclusions of the trial court should stand
  • A Senior Principal Magistrates Court has jurisdiction over employment causes of action where the employee was earning less than Kshs 80,000/- per month
  • A Certificate of Service is a statutory entitlement of all employees

Court orders

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  1. 1.The order dismissing the Cause is vacated and set aside
  2. 2.Judgment entered for the Appellant: Underpayments Kshs 225,262/-; Overtime Kshs 1,196,858/-; Gratuity Kshs 42,425/-; Total Kshs 1,464,545/-
  3. 3.The awards to attract interest at court rates from the date of judgment
  4. 4.Respondent to issue a Certificate of Service within 30 days
  5. 5.The Appellant to have costs of the Appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

On appeal from
Senior Principal Magistrates Court Winam
Not stated in judgment
Jurisdiction invoked
Appeal from the Senior Principal Magistrates Court under the employment jurisdiction of the Employment and Labour Relations Court (first appeal)

Relief refused

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Leave allowance of Kshs 75,709/-

No evidential or legal foundation for the head of claim; leave allowance is not prescribed by the Employment Act

p. 4

Costs

The Appellant to have costs of the Appeal.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Flowing from the above, the court vacates and sets aside the order dismissing the Cause, and judgment is entered for the Appellant as follows:
p. 4Final orders - appeal allowed and dismissal set aside
The awards to attract interest at court rates from today.
p. 4Interest on awards
Respondent to issue a Certificate of Service within 30 days.
p. 4Certificate of Service
The Appellant to have costs of the Appeal.
p. 4Costs
The Senior Principal Magistrates Court has jurisdiction over such causes of action where the employee was earning less than Kshs 80,000/- per month.
p. 3Jurisdiction of magistrates' court in employment claims
The Senior Principal Magistrate, therefore fell into an error of law and fact in declining jurisdiction.
p. 3Error in declining jurisdiction

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, "Oduori v JRS Group Ltd (Appeal E050 of 2023) [2024] KEELRC 10 (KLR)", Case Analysis (2024). Not stated in judgment (Memorandum of Appeal lodged 24 August 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/10/eng@2024-01-24

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