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ELRCDismissedMombasa CMELRC No. 597 of 2021 (Appeal)· [2024] KEELRC 941 (KLR)

Katana v Kwale Water And Sewarage Company Limited (Appeal E0124 of 2023) [2024] KEELRC 941 (KLR)

Employment and Labour Relations Court
18 April 2024
2,438 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court threw out a Ksh.4.4 million underpayment claim because it was filed more than three years after employment ended.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Mombasa against the judgment of the magistrate's court (CMELRC No. 597 of 2021) delivered on 28 September 2021, which dismissed the appellant's claim for underpayment of wages during employment from July 2007 to December 2016. The appellant, employed following an offer letter dated 27 August 2007 at a basic wage of Ksh.27,486, claimed unpaid underpayments of Ksh.2,338,925 plus interest, totalling Ksh.4,420,568.25. He never accepted the offer letter in writing. The respondent maintained he was posted as a revenue cashier, was paid all his dues, and had episodes of suspension, surcharge for gross misconduct and abscondment. The magistrate dismissed the claim for want of proof of underpayment. On appeal, the appellant argued a valid contract existed despite non-acceptance, relying on contract law and Evidence Act presumptions. Mbarū J applied the Peters v Sunday Post standard of re-evaluation, then raised the issue of limitation sua sponte: employment ceased in December 2016 but the claim was filed on 14 September 2021, outside the mandatory 3-year window in Section 90 of the Employment Act. Conciliation meetings did not extend time, as Section 15 of the ELRC Act allows filing first then seeking referral. The claim was therefore time-barred and the courts lacked jurisdiction. Further, without acceptance of the offer, the employment was that of a general labourer at best. The appeal was dismissed with each party bearing its own costs.

Key legal issues

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01

Limitation of employment claims under Section 90 of the Employment Act

Holding

The claim, filed 4 years 9 months and 14 days after employment ceased in December 2016, was time-barred, depriving the trial court and this Court of jurisdiction

Reasoning

Employment ceased in December 2016 but the memorandum of claim was filed on 14 September 2021, far outside the 3-year window. The court held Section 90 couched in mandatory terms, applying G4S Security Services and Kenya Electrical Trades. Conciliation meetings did not toll time; Section 15 of the ELRC Act allows filing first then seeking referral to arbitration to secure negotiations.

p. 5
02

Whether the appellant had a valid contract of employment at the claimed wage

Holding

Even if dues were owed, the appellant's failure to accept the letter of offer destroyed the foundation of the underpayment claim

Reasoning

The record showed the appellant was issued an offer of employment dated 27 August 2007 at Ksh.27,486 but never accepted it in writing despite requests, including at a 3 July 2019 meeting. He was paid Ksh.10,315 rising to Ksh.18,200. Without acceptance, employment was regulated at general labourer level, if at all.

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Standard of review on first appeal

Holding

The first appellate court must reconsider and re-evaluate the evidence on record and draw its own conclusions, giving due allowance to the trial court's advantage

Reasoning

The court adopted the classic Peters v Sunday Post standard: reconsider and re-evaluate the evidence, bear in mind the trial court's advantage of seeing and hearing witnesses, and not overturn findings merely because it would have reached a different result.

p. 3

Legal principles established

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  • A first appellate court must re-evaluate the evidence and draw its own conclusions while giving allowance to the trial court's advantage of seeing and hearing witnesses
  • Claims under the Employment Act must be filed within 3 years of the act complained of, or within 12 months of cessation in the case of continuing injury; the court cannot enlarge this time
  • Negotiations, arbitration or conciliation do not extend the limitation period under Section 90 of the Employment Act

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Each party bears its costs

Authorities

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Legislation

  • Law of Contract ActSection 3
  • Evidence ActSection 119
  • Employment ActSection 90
  • Limitation of Actions Act (cap. 22)Section 4(1)
  • Employment and Labour Relations Court ActSection 15

Cases cited (8)

  • Rose and Frank Co. v JR Crompton & Bras Ltd 1923 [2KB]
  • G. Percy Trentham Ltd v Arbitral Luxfer Ltd
    Civil Appeal 14 of 2019; [1993] 1 LR
  • Total Kenya Limited v D Pasacom General Construction and Electrical Service
    Civil Appeal 119 of 2019
  • Peters v Sunday Post Limited
    [1958] EA 424
  • G4S Security Services (K) Limited v Joseph Kamau & 468 others
    [2018] eKLR
  • Johnson Kazungu v Kenya Marine & Fisheries Research Institute
    [2021] eKLR
  • John Kiiru Njiiri v University of Nairobi
    [2021] eKLR
  • Kenya Electrical Trades & Allied Workers Union v Kenya Power & Lighting Company Ltd
    [2015] eKLR
On appeal from
Magistrates' Court (CMELRC), Mombasa
Mombasa CMELRC No. 597 of 2021
Jurisdiction invoked
Employment and Labour Relations Court Act, 2011 (first appeal from subordinate court in an employment dispute); Employment Act, 2007, Section 90

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, "Katana v Kwale Water And Sewarage Company Limited (Appeal E0124 of 2023) [2024] KEELRC 941 (KLR)", Case Analysis (2024). Mombasa CMELRC No. 597 of 2021 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/941/eng@2024-04-18

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