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ELRCDismissedCause No E366 of 2022· [2024] KEELRC 2652 (KLR)

Chumo v Uthabiti Africa Advisory Services Limited & another (Cause E366 of 2022) [2024] KEELRC 2652 (KLR)

Employment and Labour Relations Court
31 October 2024
2,131 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court confirmed that 'consultancy' labels don't override employment reality, but employees who resign must prove constructive dismissal with concrete evidence.

What this practically means

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Executive summary

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The Employment and Labour Relations Court at Nairobi, per Linnet Ndolo J, dismissed a claim by Leonard Chumo Falex, a former Director of Policy and Partnerships engaged under a 12-month consultancy contract, against Uthabiti Action and Assaya Imaya. The Claimant alleged that after refusing to support the 2nd Respondent in a scheme against a co-founder, he was subjected to false allegations of sexual harassment, suspended, and ultimately forced to resign, and he sought damages for defamation, a declaration of unfair dismissal, twelve months' salary in compensation, and damages for constructive dismissal. The Respondents maintained that the Claimant was not an employee, that the disciplinary process was legitimate, and that he resigned to forestall investigations. The Court framed three issues: existence of an employment relationship, unlawful dismissal, and entitlement to remedies. On the first, the Court held that the label 'consultancy' was not determinative; the Claimant occupied a core, full-time role and was in substance an employee. On dismissal, however, the Court found that the Claimant's own resignation letter of 5 March 2022 placed him outside the employer's disciplinary authority, rendering the later disciplinary proceedings a nullity. Applying the Coca Cola v Ligaga principles, the Court found no evidence of repudiatory breach or causal link to establish constructive dismissal, and no particulars of defamation were proved. The entire claim was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether a consultancy contract can amount to an employment relationship

Holding

Yes - the Court looks beyond the label; the Claimant, engaged as 'Consultant' Director of Policy and Partnerships on full-time hours, was in fact an employee

Reasoning

The Court applied Rika J's test in Kenneth Kimani Mburu that employment is discerned from conduct rather than contractual labels. The role was integral to the employer's core business, not peripheral, and the Claimant worked full-time hours from 8.00 am to 5.00 pm Monday to Friday. The consultancy label did not alter the substance of an employer-employee relationship.

p. 4
02

Whether the Claimant proved constructive dismissal

Holding

No - the Claimant resigned voluntarily citing adverse working conditions without evidence linking the Respondents' conduct to the resignation

Reasoning

Applying the Coca Cola v Ligaga principles, the employee bears the burden of proving a repudiatory breach going to the root of the contract and a causal link to the resignation. The Claimant gave no particulars of the adverse working conditions and adduced no evidence connecting the disciplinary process to his departure, so constructive dismissal was not made out.

p. 6
03

Effect of resignation on pending disciplinary proceedings

Holding

By resigning the Claimant placed himself outside the employer's disciplinary control, rendering subsequent disciplinary proceedings a nullity

Reasoning

Relying on Kennedy Obala Oaga v Kenya Ports Authority, the Court held that a resignation removes the employee from disciplinary authority. Since the Claimant tendered his resignation soon after the sexual harassment allegations were first raised, the later show cause notice and disciplinary hearing were of no legal effect and did not merit the Court's attention.

p. 6
04

Whether the Claimant proved defamation

Holding

No particulars of defamation were laid before the Court, so the defamation claim fails

Reasoning

Although the Claimant pleaded defamation arising from circulation of the sexual harassment allegations to colleagues and stakeholders, he did not particularise or prove the defamatory publications at trial. Without such particulars the claim could not stand, and it was dismissed along with the rest of the claim.

p. 6

Legal principles established

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  • The existence of an employment relationship is determined by the conduct of the parties and the nature of the engagement, not merely the label used in the contract
  • An employee may place himself beyond the employer's disciplinary authority by tendering a resignation; subsequent disciplinary proceedings are then a nullity

Court orders

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  1. 1.The Claimant's entire claim is dismissed
  2. 2.Each party to bear their own costs

Authorities

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Cases cited (4)

  • Kenneth Kimani Mburu & another v Kibe Muigai Holdings Limited
    [2014] EKLR
  • Nathan Ogada Atiagaga v David Engineering Limited
    [2015] eKLR
  • Coca Cola East & Central Africa Limited v Maria Kagai Ligaga
    [2015] eKLR
  • Kennedy Obala Oaga v Kenya Ports Authority
    [2018] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act and the Employment Act (employment dispute)

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, "Chumo v Uthabiti Africa Advisory Services Limited & another (Cause E366 of 2022) [2024] KEELRC 2652 (KLR)", Case Analysis (2024). Cause No E366 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2652/eng@2024-10-31

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