Inuka Africa Limited v Mokaya (Appeal E141 of 2023) [2024] KEELRC 1952 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Award of compensation for unfair termination
The trial magistrate's award of 6 months' compensation was upheld as the appellant filed no submissions showing the discretion was wrongly exercised
The learned Magistrate awarded all claims but capped compensation at 6 months instead of 12 months. The appellate court found reasons were given for the award of compensation on findings of unfair termination lacking due process. No written submissions were filed on the appeal demonstrating that the trial court applied its discretion wrongly.
Leave days not taken
The award of Ksh.125,000 was excessive; leave pay should be Ksh.27,500 based on 33 days at Ksh.25,000 monthly wage
Section 28(4) of the Employment Act caps untaken leave days at 18 months' worth of annual leave days, totaling 33 days. At a wage of Ksh.25,000, the respondent's untaken leave days amount to Ksh.27,500. The trial court's award of Ksh.125,000 exceeded this statutory cap and was therefore reduced.
Bonus claim
The bonus claim of Ksh.300,000 fails for want of evidence; entitlement to a bonus must be based on written approval
A bonus is at the discretion of the employer and as a special claim must be based on written approval. Despite the appellant not calling any witness, the respondent did not submit any evidence as to how such a benefit accrued at the end of employment. The trial court's award had no basis or foundation and was therefore set aside.
Notice pay and unpaid salary
Notice pay was correctly awarded upon the finding of a lapse in due process; unpaid salary for June 2022 was correctly awarded as the appellant's response confirmed employment terminated with effect from 30 June 2022
Upon the finding that there was a lapse in due process, notice pay is correctly awarded. On the claim for unpaid salary for June 2022, the appellant's own response confirmed employment terminated with effect from 30 June 2022, so the due salary of Ksh.25,000 was correctly awarded.
Costs of the appeal
The appellant, having moved with haste to file the appeal and secure a stay but thereafter doing nothing to prosecute it, is to pay costs of the lower court and the appeal
The appellant filed the appeal and a stay application but thereafter failed to prosecute the appeal, filing no written submissions and not attending subsequent mentions. The sole reason for the appeal appears to have been to seek a stay of execution. The request for a fresh trial was left bare, warranting costs against the appellant.
Legal principles established
#- The role of a first appellate court is to review the entire record and make its own conclusions, mindful that the trial court had the advantage of hearing the parties in evidence
- Under Section 28(4) of the Employment Act, untaken leave days are capped at 18 months' worth of annual leave days, being a total of 33 days
- A bonus claim is discretionary for the employer and as a special claim must be based on written approval
Court orders
#- 1.Compensation at 6 months Ksh.150,000
- 2.Notice pay Ksh.25,000
- 3.Unpaid salary for days worked Ksh.25,000
- 4.Leave pay Ksh.27,500
- 5.Costs of the appeal and the lower court proceedings to the appellant (appellant to pay costs of the lower court and this appeal)
- On appeal from
- Magistrates' Court (ELRC), Mombasa
- Mombasa CMELRC No. E544 of 2022
- Jurisdiction invoked
- First appeal from the trial magistrate in an employment claim under the Employment Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Inuka Africa Limited v Mokaya (Appeal E141 of 2023) [2024] KEELRC 1952 (KLR)", Case Analysis (2024). Mombasa ELRC Appeal (E544 of 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1952/eng@2024-07-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.