Karimi v Katheri Farmers Co-operative Society Limited (Cause E022 of 2023) [2024] KEELRC 2195 (KLR)
The bottom line
#A Kenyan court ruled that unpaid wages for six months and endless suspension forced a manager's resignation, awarding her 12 months' salary.
What this practically means
#Executive summary
#Key legal issues
#Whether the claimant's resignation amounted to constructive dismissal
Yes. The resignation was involuntary, caused by prolonged suspension beyond the 60-day CBA maximum and non-payment of salary for over six months.
The court found the claimant was suspended without a stated duration, never recalled after the 60-day contractual cap, and unpaid throughout the suspension. Although salary issues affected other employees too, the employer's breaches fundamentally prevented the claimant from performing her contractual obligations, entitling her to resign and treat the separation as a dismissal. Allegations of general hostility and discriminatory transfers were not proved.
Whether the claimant was entitled to salary increments from 2013 for the Senior Factory Manager position
No. The claim for increments was declined because the basis was not demonstrated and evidence showed her salary had increased.
The promotion letter never mentioned salary and no confirmation letter issued. The respondent demonstrated the claimant's basic pay rose from Kshs.13,000 to Kshs.19,174 by October 2023, undermining the assertion that she was denied all increments, so the prayer was declined.
Whether the claimant was entitled to terminal dues and service pay
Yes, in principle. Under Clause 18 of the CBA she is entitled to terminal benefits, to be computed by the respondent and filed in court for adoption within 30 days.
The claim was not quantified, but the court noted the CBA entitlement, awarded terminal dues for 24 years of service, and directed the respondent to compute them and file a report for adoption within 30 days of judgment.
Remedies for the constructive dismissal
The claimant was awarded 12 months' gross salary (Kshs.324,120.00) as compensation for unlawful dismissal under Section 49 of the Employment Act, 2007.
The court considered her 24 years of service, unproved performance and disciplinary issues, her age and reduced employability, and exercised its discretion under Section 49 to award twelve months' gross salary based on the October 2023 payslip.
Legal principles established
#- Failure to pay an employee's salary for six consecutive months and suspension beyond the contractual maximum of 60 days without pay are grounds upon which constructive dismissal may be inferred.
- For constructive dismissal to be inferred, the employee must resign within a reasonable time as a result of the employer's hostile working conditions, and the employer must not have expressed a desire to terminate the employee.
Court orders
#- 1.Declaration that the respondent has constructively dismissed the claimant.
- 2.Award of Kshs.324,120.00 for the unlawful dismissal.
- 3.Terminal dues under clause 18 of the CBA, with the respondent directed to compute the terminal dues payable to the claimant based on Clause 18 of the CBA and file a report in court for adoption within 30 days of the judgment.
- 4.Costs and interest at court rates from the date of the judgment.
- 5.The award is subject to statutory deductions.
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment claim)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Karimi v Katheri Farmers Co-operative Society Limited (Cause E022 of 2023) [2024] KEELRC 2195 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2195/eng@2024-09-12
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.