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ELRCPartially AllowedNot stated in judgment· [2024] KEELRC 2673 (KLR)

Kinuthia v Insta-Pumps Engineering Limited (Cause 541 of 2019) [2024] KEELRC 2673 (KLR)

Employment and Labour Relations Court
31 October 2024
525 words in judgment
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The bottom line

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A Kenyan employer that ignored an unfair dismissal suit was ordered to pay Kshs. 1.29 million, but the ex-employee's compensation was cut for short service and no proof of job-hunting.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Sales Engineer on 2nd October 2015 at a gross monthly salary of Kshs. 92,000, sued on 20th August 2019 alleging that he was dismissed without justifiable cause on 31st August 2016 after only 10 months of service. He sought a declaration that termination was unfair, 12 months' salary in compensation (Kshs. 1,104,000), 6 months' salary arrears (Kshs. 552,000), 3 months' notice pay (Kshs. 276,000), interest and costs. The Respondent entered appearance through the firm of Kamotho Njomo but filed no Statement of Response; its advocates came off record on 28th July 2023, and it did not attend the hearing on 20th June 2024 despite personal service, where the Claimant testified and adopted his witness statement and documents, including the appointment letter and demand letter. The Court found the claim unopposed: the employment contract was established, the dismissal was uncontested and not based on valid reasons, and the 6-month salary arrears were undisputed. On quantum, the Court noted the Claimant worked only 10 months, did not demonstrate mitigation, and did not justify maximum 12-month compensation; it awarded 5 months' salary (Kshs. 460,000). All other prayers were granted as prayed. The Court declared the termination unfair, awarded a total of Kshs. 1,288,000, ordered issuance of a Certificate of Service, awarded costs to the Claimant, and allowed interest at 14% per annum from the date of judgment until payment in full.

Key legal issues

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01

Uncontested claim for unfair termination

Holding

In the absence of any evidence from the Respondent, the claim stands unopposed and the termination was unfair and not based on valid reasons

Reasoning

The Respondent filed no Statement of Response, ceased participation after its advocates came off record, and did not attend the hearing despite personal service of the hearing notice. The Claimant adopted his witness statement and documents, including the letter of appointment and demand letter. The Court found the employment contract established, the dismissal uncontested, and the salary arrears of 6 months undisputed.

p. 2
02

Quantum of compensation for unfair termination

Holding

The Claimant was awarded 5 months' salary in compensation instead of the 12 months sought

Reasoning

The Claimant worked only 10 months before dismissal and did not show he caused or contributed to the termination. However, he did not inform the Court whether he mitigated his loss by securing alternative employment, and did not justify the maximum 12 months' compensation given his short service. The Court therefore awarded 5 months' salary at Kshs. 460,000.

p. 2

Legal principles established

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  • Compensation for unfair termination must be proportionate to the length of service and may be reduced where the claimant does not justify maximum compensation or demonstrate mitigation

Court orders

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  1. 1.Declaration that termination was unfair
  2. 2.Respondent to pay 5 months' salary in compensation for unfair termination at Kshs. 460,000
  3. 3.Respondent to pay arrears of salary of 6 months at Kshs. 552,000
  4. 4.Respondent to pay notice of 3 months at Kshs. 276,000 (total award Kshs. 1,288,000)
  5. 5.Certificate of Service to issue
  6. 6.Costs to the Claimant
  7. 7.Interest at 14% per annum from date of Judgment until payment in full
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Statement of Claim filed 20th August 2019)

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, "Kinuthia v Insta-Pumps Engineering Limited (Cause 541 of 2019) [2024] KEELRC 2673 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2673/eng@2024-10-31

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