Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in the judgment as provided· [2024] KEELRC 449 (KLR)

Hobaya v Roy Hauliers Limited (Cause E554 of 2020) [2024] KEELRC 449 (KLR)

Employment and Labour Relations Court of Kenya
21 February 2024
4,356 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

#

A Kenyan court upheld a branch manager's dismissal and ordered him to pay his former employer Kshs.18 million after he failed to prove he was unfairly terminated.

What this practically means

#

Executive summary

#
This first-instance employment claim was originated by a Statement of Claim dated 4th August 2020. The Claimant, formerly the Respondent's Branch Manager in Mombasa from 11th April 2016 on a monthly salary of Kshs.148,556, alleged that on 6th November 2019 he was verbally suspended and thereafter summarily dismissed by letter dated 13th November 2019 without notice or hearing, contrary to Sections 41 and 45 of the Employment Act. He sought reinstatement, refund of salary deductions of about Kshs.408,357, severance pay, salary for days worked, accrued leave pay, one month's pay in lieu of notice, and twelve months' compensation. The Respondent defended the claim, asserting the dismissal was justified by misappropriation of funds, unaccounted petty cash and transit losses of about Kshs.17 million occasioned by the Claimant's failure to conduct test load reports, and counterclaimed Kshs.18,016,300. The court framed four issues and, after considering written submissions, held that the Claimant had failed to discharge the burden of proof under Section 47(5) of the Employment Act and found a lawful termination. The court also found the counterclaim supported by documents and testimony and allowed it. The claim was dismissed with the Counter Claim awarded at Kshs.18,000,000, and each party was ordered to bear their own costs of the claim and Counter Claim. Judgment was delivered on 21st February 2024 by D. K. Njagi Marete, Judge.

Key legal issues

#
01

Whether the termination was wrongful, unfair and unlawful

Holding

The court found a lawful termination; the claimant failed to discharge his burden under Section 47(5) of the Employment Act to prove unfair termination, and the respondent's evidence of misconduct and unaccountability prevailed.

Reasoning

The claimant alleged no hearing contrary to Sections 41 and 45 of the Employment Act and natural justice, but the respondent demonstrated the claimant was called to a meeting, could not account for funds, and later appealed to a personnel committee which heard him with a representative of his choice and upheld the dismissal. The court held the claimant failed to substantiate a case of unlawful termination to contradict the respondent's evidence of lawful dismissal for continued misconduct.

p. 9
02

Whether the respondent is entitled to the counterclaim of Kshs.18 million

Holding

The counterclaim was allowed; the court found the respondent supported it with documents and testimony and that the claimant's denials were baseless.

Reasoning

The respondent demonstrated through debit notes, invoices and witness testimony that the claimant misappropriated funds and occasioned transit losses through failure to conduct test load reports. The deductions made from the claimant's salary were treated as partial recovery. On a preponderance of evidence, the court found a supported case for the counterclaim.

p. 10
03

Whether the claimant is entitled to the relief sought

Holding

The claimant was not entitled to any of the relief sought, having failed to prove unlawful termination.

Reasoning

All heads of relief (reinstatement, salary deductions, severance pay, days worked, accrued leave pay, pay in lieu of notice and 12 months' compensation) were premised on unlawful termination, which the court found unproved. The claim was therefore dismissed, though without an order for costs against the claimant.

p. 10

Legal principles established

#
  • For a complaint of unfair termination, the employee bears the burden of proving that unfair termination occurred, while the employer bears the burden of justifying the grounds for termination
  • He who alleges must prove
  • Parties are bound by their pleadings and evidence at variance with the pleadings goes to no issue

Court orders

#
  1. 1.The Claimant be is hereby ordered to meet the Counter Claim for Kshs.18,000,000.00 as awarded by this court.
  2. 2.Each party shall bear their costs of the claim and Counter Claim.
Jurisdiction invoked
Original employment and labour relations jurisdiction (Employment Act, Cap 226); no specific constitutional provision invoked

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Hobaya v Roy Hauliers Limited (Cause E554 of 2020) [2024] KEELRC 449 (KLR)", Case Analysis (2024). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/449/eng@2024-02-21

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