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ELRCPartially AllowedCause No E006 of 2022· [2024] KEELRC 2238 (KLR)

Mwinyihaji v David Livingstone Limited t/a Mara River Lodge & another (Cause E006 of 2022) [2024] KEELRC 2238 (KLR)

Employment and Labour Relations Court
18 September 2024
4,254 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that sending an employee on indefinite unpaid leave without recall is constructive dismissal, awarding the worker over Kshs 1.3 million.

What this practically means

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Executive summary

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The claimant, employed as general manager at Mara River Lodge from 1st June 2017 at a net monthly salary of Kshs 100,000/=, claimed he was constructively dismissed when, while on annual leave in February 2020, the 2nd respondent (a director of the 1st respondent) instructed him by phone not to resume duty on 1st March 2020. He was never recalled, was paid only Kshs 65,000/= during the entire period, and received no salary from February 2020. He sought a declaration of constructive dismissal, salary arrears, notice pay, leave pay, maximum compensation of 12 months' salary under Section 49 of the Employment Act, and a certificate of service. The respondents denied liability, asserting the contract was frustrated by Covid-19 and flooding, that the claimant was paid for February and March 2020 (records allegedly destroyed by floods), and counter-claimed USD 900 and Kshs 24,000/= allegedly received from guests and unaccounted for. The court framed five issues and held that sending the claimant on indeterminate compulsory unpaid leave without recall amounted to constructive dismissal without due process; the Covid-19/frustration defence failed for want of supporting records, and redundancy under Section 40 was the lawful option. The counter-claim failed as there was no evidence the money was paid to the claimant and no demand was made before suit; it was dismissed as an afterthought. The cause succeeded partially: the declaration, February 2020 salary, notice pay and maximum 12-month compensation (total Kshs 1,400,000/= less Kshs 65,000/= paid, balance Kshs 1,335,000/=) were awarded, but the three-year leave claim was denied. Judgment was against the 1st respondent alone, with a certificate of service to issue within 30 days and costs to the claimant.

Key legal issues

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01

Whether the claimant was constructively dismissed

Holding

The claimant was constructively dismissed when he was sent on compulsory unpaid leave and never recalled to work.

Reasoning

The uncontested evidence was that the claimant was told not to resume duty on 1st March 2020 after leave, and was never recalled or allocated duties. He was neither declared redundant under Section 40 nor terminated under Sections 35, 41, 43, 45 and 47 of the Employment Act. The prolonged disengagement without communication amounted to constructive dismissal without due process.

p. 7
02

Whether the employment contract was frustrated by Covid-19

Holding

The frustration argument fails; the employer did not avail records to prove business losses and could have declared redundancy under Section 40 instead.

Reasoning

The 1st respondent pleaded that Covid-19 and flooding frustrated the contract and destroyed records, but produced no audited accounts or police report to substantiate the losses or destruction of records. The court held that even if the employer wished to end the employment, Section 40 redundancy was the lawful option available, and failing that the dismissal was without due process.

p. 8
03

Whether the counter-claim was proved

Holding

The counter-claim failed; there was no evidence the money was ever paid to the claimant and no demand was made before the suit.

Reasoning

The evidence showed the counterclaimed sums related to unpaid guest bills (debts) rather than monies received by the claimant. As a legal entity, the 1st respondent could pursue the debtors directly, and by sending the claimant on compulsory leave it denied him the opportunity to follow the debts. No demand was made before the suit, showing the counter-claim was an afterthought.

p. 7
04

Whether the 2nd respondent was properly joined

Holding

Misjoinder does not defeat a cause; however judgment was entered against the 1st respondent alone as the 2nd respondent was not the employer.

Reasoning

The court held that misjoinder or non-joinder does not render a cause incompetent, citing Order XX of the Civil Procedure Act & Rules, and that remedies would be tailored per party. On the evidence, the 2nd respondent only conveyed the employer's message and was not the employer, so liability attached to the 1st respondent only.

p. 9

Legal principles established

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  • Sending an employee on indeterminate unpaid leave without recall amounts to constructive dismissal.
  • Misjoinder or non-joinder of a party does not render a cause incompetent.

Court orders

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  1. 1.A declaration that the claimant was unfairly and unlawfully constructively dismissed by the 1st respondent on or around 1st March, 2020
  2. 2.Award of Kshs 100,000/= being one month's salary in lieu of notice
  3. 3.Award of Kshs 100,000/= being salary arrears for February, 2020
  4. 4.Award of Kshs 1,200,000/= as compensation for unfair and unlawful constructive dismissal, less Kshs 65,000/= already paid, leaving a balance of Kshs 1,335,000/= payable and not subject to statutory deductions
  5. 5.The 1st respondent to issue and deliver a certificate of service to the claimant within 30 days of the judgment
  6. 6.The claimant awarded the costs of the cause and of the dismissed counter-claim, against the 1st respondent
  7. 7.The counter-claim is dismissed
  8. 8.Judgment entered against the 1st respondent alone

Authorities

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Legislation

  • Employment ActSections 35, 40, 41, 43, 44, 45, 47, 49 (including 49(4) and 49(c)), 51
  • Civil Procedure Act & RulesOrder XX

Cases cited (4)

  • Mary Chemweno v Kenya Pipeline Company Limited
    (2017) eKLR
  • Loice Otieno v Kenya Commercial Bank Limited
    (2013) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2012) eKLR
  • Davis Contractors Ltd v Fareham U.D.C
    (1956) AC 696
Jurisdiction invoked
Employment and labour relations jurisdiction under Article 162(2) of the Constitution (court identified as Employment and Labour Relations Court, Nakuru; specific provision not cited in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Mwinyihaji v David Livingstone Limited t/a Mara River Lodge & another (Cause E006 of 2022) [2024] KEELRC 2238 (KLR)", Case Analysis (2024). Cause No E006 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2238/eng@2024-09-18

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