Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCDismissedELRC Cause at Kisumu (Memorandum of Claim dated 25th January 2023, filed 2nd February 2023)· [2024] KEELRC 1722 (KLR)

Ojijah v Trees for the Future INC (Cause E010 of 2023) [2024] KEELRC 1722 (KLR)

Employment and Labour Relations Court
4 July 2024
4,036 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled an employee's dismissal was fair after he ignored a disciplinary hearing and kept his employer's money, then ordered him to repay over Kshs 334,000.

What this practically means

#

Executive summary

#
The Claimant, formerly Regional Manager of the Respondent non-profit organisation, sued seeking declarations of constructive dismissal and unfair termination plus Kshs 5,850,000/= in terminal dues, costs and interest. The Respondent defended the suit as a lawful summary dismissal for failure to refund Kshs 708,750/= disbursed to the Claimant's account, and counterclaimed for Kshs 334,212/= being the balance after offsetting terminal dues. The dispute turned in part on the authenticity of a two-year fixed term contract produced by the Claimant, which a forensic document examiner for the Respondent said was printed from a different source; the Respondent maintained it issued only one-year contracts. The court framed three issues: constructive/unfair dismissal, entitlement to remedies, and the counterclaim. It held that constructive dismissal was not proved because the Claimant never resigned. On procedure, the Claimant admitted receiving the show cause letter and disciplinary hearing invitation by email but neither responded nor attended, so the dismissal was procedurally fair. Substantively, the Claimant admitted receipt of the money, produced receipts predating the disbursement, and transacted for the Respondent contrary to the terms of his administrative leave; the Respondent therefore had valid, fair and justified reasons to summarily dismiss him. All remedies sought failed, including salary for November and December 2022 (offset against the debt), pay in lieu of notice, and compensation for the unexpired contract. Following Liech v Sameer Agricultural & Livestock (K) Ltd, the counterclaim was allowed at Kshs 334,507/=. The Claimant was ordered to bear the costs of the suit.

Key legal issues

#
01

Constructive dismissal

Holding

Not proved; the Claimant was summarily dismissed and never resigned

Reasoning

The court held that constructive dismissal requires resignation induced by the employer's breach or unbearable conditions. The Claimant's pleadings, testimony and the Respondent's evidence all showed summary dismissal for gross misconduct, not resignation. No evidence of constructive dismissal was led.

p. 7
02

Procedural fairness of dismissal

Holding

Dismissal was procedurally fair; the Claimant squandered the internal process

Reasoning

The Claimant received a show cause letter and invitation to a disciplinary hearing by email, admitted receipt, yet neither responded nor attended. His only reservation was that the hearing was online, for which no legal basis was advanced. Following Feroz Ali Omar v ECU Worldwide, an employee who refuses to engage internal mechanisms cannot claim he was not heard.

p. 7
03

Substantive fairness of dismissal

Holding

Valid, fair and justified reasons existed for the summary dismissal

Reasoning

The Claimant admitted receiving Kshs 708,750/= and failed to refund it despite demand. He claimed he spent the money on Respondent's operations, yet the letter of administrative leave barred him from transacting for the Respondent, which he admitted knowing. His receipts were dated before the money was sent, confirming no payments were made on receipt.

p. 8
04

Respondent's counterclaim

Holding

Allowed as prayed for Kshs 334,507/= after offsetting terminal dues

Reasoning

Relying on Liech v Sameer Agricultural & Livestock (K) Ltd, the court found the Claimant neither refunded nor utilised the monies for the Respondent's benefit. The Respondent computed terminal dues of Kshs 374,242.51/= and applied them against the Kshs 708,750/= disbursed, leaving Kshs 334,507.49/= outstanding under Section 19 of the Employment Act.

p. 8

Legal principles established

#
  • Constructive dismissal requires that the employee resigns by reason of the employer's conduct making continued employment untenable
  • An employer must prove valid and fair reasons for dismissal under Sections 43, 45 and 47(5) of the Employment Act
  • An employer may recover unrefunded monies from an employee's terminal dues under Section 19 of the Employment Act

Court orders

#
  1. 1.A declaration that the Claimant's dismissal from the service of the Respondent is not unfair
  2. 2.An order that the Claimant pays the Respondent the amount of the Counter-claim at Kshs.334,507/=
  3. 3.The Claimant shall bear the costs of the suit

Authorities

#

Legislation

  • Employment ActSections 43, 45 and 47
  • Employment ActSection 45(2)(c)
  • Employment ActSection 49
  • Employment ActSection 41
  • Employment ActSection 19(1)(b)
  • Employment Act, 2007Section 19

Cases cited (10)

  • Peter Otabong Ekisa v County Government of Busia
    [2017] eKLR
  • Lydia Moraa Obara v Tusker Mattresses Ltd
    [2021] eKLR
  • Milton M Isanya v Aga Khan Hospital Kisumu
    (2017) eKLR
  • Coca Cola East and Central Africa v Maria Kagai Ligaga
    (2015) eKLR
  • Kenya Engineering Workers Union v Narcol Aluminium Rolling Mills Limited
    [2015] eKLR
  • Feroz Ali Omar v ECU Worldwide Limited
    [2018] eKLR
  • Liech v Sameer Agricultural & Livestock (K) Ltd (now) Devyan Food Industries (K) Limited
  • Jacob Otieno Oyugi vs Trees for the Future Inc
    (2023) eKLR
  • Enid Nkirote Mukire vs Kenya Yearbook Editorial Board
    [2022] eKLR
  • Western Excavating ECC Ltd v Sharp
    (1978) 2 WLR 344
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Ojijah v Trees for the Future INC (Cause E010 of 2023) [2024] KEELRC 1722 (KLR)", Case Analysis (2024). ELRC Cause at Kisumu (Memorandum of Claim dated 25th January 2023, filed 2nd February 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1722/eng@2024-07-04

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