Chemoiwo v Bomas of Kenya Limited (Cause E314 of 2021) [2024] KEELRC 415 (KLR)
The bottom line
#A Kenyan employer must pay a former employee's terminal dues and gratuity even where it disputes the contract's authenticity, after letting it run its full course.
What this practically means
#Executive summary
#Key legal issues
#Whether the Court's interim orders of 22nd April 2021 were breached by the summary dismissal of 27th April 2021
The Respondent was held in contempt for acting contrary to the orders but subsequently purged the contempt by reinstating the Claimant until her contract expired
The Court had directed that the Claimant attend the disciplinary hearing and that her employment not be tampered with before its conclusion. The dismissal letter dated 27th April 2021 followed the orders served on the Respondent. The Respondent paid the fine after being held in contempt and reinstated the Claimant, who served until 30th June 2023, which the Court took into account on remedies.
Remedies payable on the expiry of the contract
The Claimant is entitled to terminal dues and gratuity upon clearing with the Respondent, with the Respondent bearing half the costs
By the time of judgment the contract had lapsed by effluxion of time on 30th June 2023 and the salary claims were spent. What remained outstanding were terminal dues and gratuity, which the Respondent conceded were unpaid pending clearance. The Court directed clearance within 7 days and payment within 7 days thereafter, and apportioned costs at one half because the Respondent was largely to blame for the extended litigation.
Legal principles established
#- An employer who doubts the authenticity of an employment contract that bears all its hallmarks but allows it to run its full course must honour the terminal benefits under it
- Clearance by the employee is a precursor to payment of terminal dues
Court orders
#- 1.The Claimant to clear with the Respondent within the next 7 days
- 2.The Respondent to pay the Claimant her terminal dues including gratuity within 7 days of her clearing with it
- 3.The Respondent to meet one half (½) of the costs of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the ELRC Act (section 12(4) invoked on costs)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Chemoiwo v Bomas of Kenya Limited (Cause E314 of 2021) [2024] KEELRC 415 (KLR)", Case Analysis (2024). Cause No E314 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/415/eng@2024-02-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.