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ELRCDismissedNot stated in the judgment (Memorandum of Appeal dated 29th May 2024)· [2024] KEELRC 2850 (KLR)

Mijengo Investments Limited v Oduor (Appeal E041 of 2024) [2024] KEELRC 2850 (KLR)

Employment and Labour Relations Court
19 November 2024
JRJames Rika
1,393 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Respondent, an Assistant Sawmill Sawyer employed by the Appellant from August 2013 until July 7, 2022, claimed before the Trial Court that his termination on account of redundancy was unfair and unlawful, and that he was underpaid, worked on public holidays and excess hours without compensation, never went on annual leave, and was denied severance and notice pay. The Trial Court awarded him damages for unfair termination of Kshs. 198,140 (equivalent to 10 months' salary), underpayments of Kshs. 129,663, notice of Kshs. 5,614, unpaid annual leave of Kshs. 23,500, plus costs and interest at 12% per annum. The Appellant appealed on 13 grounds, arguing the redundancy procedure complied with Section 40 of the Employment Act, that a signed letter and cheque of Kshs. 145,000 constituted a valid termination agreement, that the Trial Court shifted the burden of proof, and that the awards were excessive. The Court found the employer proved no consultative meetings (its witnesses conceded there were no minutes) and that the letter was not a redundancy notice, so the process departed from the minimum standards of Section 40. The letter and cheque did not discharge the employer's liability. All quantum awards fell within the Trial Court's discretion, underpayment being anchored on pay slips and the General Wages Order 1982. The appeal was declined with costs to the Respondent, on 19th November 2024 at Nakuru.

Key legal issues

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01

Procedural fairness of the redundancy under Section 40 of the Employment Act

Holding

The redundancy was unfair; no valid redundancy notice issued and no consultative meetings were proved.

Reasoning

The employer alleged three consultative meetings but produced no minutes; its accountant conceded the July 7, 2022 letter was not a redundancy notice and he was unaware whether any notice issued. Selection criteria are matters to be addressed through consultation. The process departed from the minimum standards prescribed by Section 40.

p. 2
02

Whether the termination letter and cheque constituted a valid termination agreement

Holding

They did not; the letter was signed only in acknowledgement of receipt.

Reasoning

Nothing on the letter indicated it was an agreement discharging the employer from legal liability upon termination. Ground 4 of the appeal therefore failed.

p. 3
03

Burden of proof

Holding

The claimant bore the burden of establishing his claim; no burden was improperly shifted.

Reasoning

The Respondent initiated the claim, so the burden was his from inception. On unpaid leave, the Trial Court never asked the Appellant to prove payment; it found leave was paid but at an underpaid rate and adjusted the salary accordingly. Grounds 6 and 9 were declined.

p. 3
04

Quantum of awards (compensation, underpayment, house allowance, leave, terminal dues)

Holding

All awards were within the Trial Court's discretion and not excessive.

Reasoning

Compensation of 10 months fell within the statutory maximum of 12 months. Underpayment was based on pay slips and the statutory housing allowance under the General Wages Order; the trial court anchored its decision on superior court redundancy authorities. No basis for interference on appeal.

p. 3

Legal principles established

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  • A valid redundancy must conform to the minimum standards of fair and lawful redundancy prescribed by Section 40 of the Employment Act, including consultation and notice.
  • A letter signed by an employee merely in acknowledgement of receipt does not constitute an agreement discharging the employer from legal liability on termination.
  • Compensation for unfair termination is a statutory discretion capped at 12 months' gross salary, and an award of 10 months was not inordinately high.

Court orders

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  1. 1.The Appeal is declined
  2. 2.Costs to the Respondent
On appeal from
Trial Court (not named in the judgment)
Jurisdiction invoked
Appellate jurisdiction of the Employment and Labour Relations Court over an appeal from the Trial Court (provision not stated in the judgment)

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, "Mijengo Investments Limited v Oduor (Appeal E041 of 2024) [2024] KEELRC 2850 (KLR)", Case Analysis (2024). Not stated in the judgment (Memorandum of Appeal dated 29th May 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2850/eng@2024-11-19

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