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ELRCPartially AllowedAppeal from Mombasa CMELRC No. 789 of 2019· [2024] KEELRC 1414 (KLR)

Bollore Africa Logistics Limited v Mwakimanga (Appeal E104 of 2023) [2024] KEELRC 1414 (KLR)

Employment and Labour Relations Court
16 May 2024
2,904 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled an employee's claim was filed too late — the three-year clock starts when employment ends, not when dues are paid.

What this practically means

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Executive summary

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This is a first appeal against the judgment of the Magistrates Court at Mombasa (CMELRC No. 789 of 2019) delivered on 8 September 2023, which awarded the respondent Ngao Fakii Mwakimanga Ksh.700,000 as general compensation for unprocedural termination, plus costs and interest. The respondent had been employed as a rigger crane from 1992 until his retirement on medical grounds effective 30 June 2016, following a Medical Board assessment finding 75% permanent disability. He filed his claim on 3 September 2019. The appellant had raised a preliminary objection that the suit was statute-barred under Section 90 of the Employment Act, which the learned magistrate dismissed on 21 April 2022, holding that time ran from 7 September 2016 when final dues were released. On appeal, the ELRC held that the magistrate erred: the cause of action arose when the termination notice took effect on 30 June 2016, and payment of terminal dues did not extend the employment relationship or the limitation period. The claim, filed more than three years later, was time-barred, and the court has no jurisdiction to extend time under Section 90. The court also held, obiter, that a discharge voucher cannot negate an employee's statutory right under Section 35(4) to dispute the fairness of termination. Finding all proceedings without jurisdiction invalid, the court set aside the trial judgment, with no order as to costs owing to the appellant's own lapse in prioritising the jurisdictional ground.

Key legal issues

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01

Limitation under Section 90 of the Employment Act

Holding

The claim was time-barred; the cause of action arose on 30 June 2016 when termination took effect, and the suit filed on 3 September 2019 was out of time

Reasoning

Section 90 is mandatory: employment claims must be filed within 3 years of the cause of action. The cause of action arises when the employment relationship ends, marked by the termination notice taking effect, not by the later payment of terminal dues. The magistrate erred in holding that release of final dues on 7 September 2016 extended the relationship. The claim should have been struck out at the preliminary objection stage.

p. 5
02

Effect of the discharge voucher

Holding

A discharge voucher does not bar a claim disputing the lawfulness or fairness of termination

Reasoning

Although the Court of Appeal in Trinity Prime treats an executed discharge voucher as a complete contract binding the parties, Section 35(4) of the Employment Act preserves the employee's right to dispute the lawfulness or fairness of termination. The respondent therefore had a lawful claim he could pursue notwithstanding the voucher.

p. 6
03

Consequence of lack of jurisdiction

Holding

The trial judgment, having been rendered without jurisdiction, must be set aside

Reasoning

Because the claim was statute-barred, both the trial court and the appellate court lacked jurisdiction. Proceedings without jurisdiction are invalid, and the claim ought to have been struck out at the ruling stage on 21 April 2022. The appeal therefore succeeds and the judgment of 8 September 2023 is set aside.

p. 6

Legal principles established

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  • An employment claim must be lodged within 3 years from the date employment ceased; payment of terminal dues after termination does not extend the limitation period
  • The court has no jurisdiction to extend the 3-year limitation period under Section 90 of the Employment Act
  • A discharge voucher cannot negate an employee's statutory right to dispute the lawfulness or fairness of termination under Section 35(4)
  • All proceedings without jurisdiction are invalid

Court orders

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  1. 1.Judgment delivered on 8 September 2023 in Mombasa CMELRC No. 789 of 2019 is set aside
  2. 2.No party is entitled to costs
On appeal from
Magistrates Court (ELRC), Mombasa
Mombasa CMELRC No. 789 of 2019
Jurisdiction invoked
First appeal under Section 90 of the Employment Act, 2007; Employment and Labour Relations Court appellate 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, "Bollore Africa Logistics Limited v Mwakimanga (Appeal E104 of 2023) [2024] KEELRC 1414 (KLR)", Case Analysis (2024). Appeal from Mombasa CMELRC No. 789 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1414/eng@2024-05-16

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