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ELRCPartially AllowedAppeal against Judgment in Milimani MCELRC No. E436 of 2022· [2025] KEELRC 75 (KLR)

Komu v Sana Industries Limited (Appeal E107 of 2023) [2025] KEELRC 75 (KLR)

Employment and Labour Relations Court
23 January 2025
3,798 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 upheld an employer's dismissal of a worker for desertion but ordered payment of notice pay, leave dues, costs, and a certificate of service.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Nairobi (Jemimah Keli, J) against the judgment of Hon. M.W. Murage (PM) delivered on 9 June 2023 in Milimani MCELRC No. E436 of 2022, which dismissed the appellant's claim arising from the termination of his employment as a general worker on 29 June 2021. The appellant raised seven grounds, principally that the trial magistrate erred in failing to find the termination amounted to redundancy and was unfair and unlawful. Framing three issues - whether the termination occurred and amounted to redundancy, whether it was lawful and fair, and entitlement to reliefs - the Court, guided by Abok James Odera and Selle v Associated Motor Boat Co., re-evaluated the evidence. It upheld the trial court's finding that the appellant deserted work after a three-day suspension for neglect, holding the alleged redundancy an uncorroborated allegation whose burden the appellant never discharged under sections 107-109 of the Evidence Act and section 47(5) of the Employment Act. However, the Court found the termination procedurally deficient: the employer stopped the appellant's salary without notice or hearing, contrary to section 41(2), the stoppage itself amounting to dismissal. The appeal was declared partially successful: the lower court's judgment was set aside and substituted with an award of one month's notice pay (Kshs. 16,900), accrued leave pay for the last 18 months (Kshs. 21,970), interest, costs of the suit, and a certificate of service. Severance and 12 months' compensation were refused. Costs at appeal went to the appellant, with a 30-day stay granted.

Key legal issues

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01

Whether the termination amounted to redundancy

Holding

The appellant did not discharge the burden of proving redundancy; the trial court's finding of desertion was upheld and the redundancy claim failed

Reasoning

Redundancy under the Employment Act requires the employer's initiative and notices under section 40, none of which were produced. The appellant pleaded redundancy but never cross-examined the respondent's witness on the alleged list of redundant employees, leaving it an uncorroborated allegation. The burden under sections 107-109 of the Evidence Act and section 47(5) of the Employment Act was never discharged, so it never shifted to the respondent.

p. 5
02

Whether the termination was lawful and fair

Holding

The reason for termination was lawful (desertion/gross misconduct) but the process lacked procedural fairness, warranting notice pay

Reasoning

Desertion is gross misconduct under section 44(4)(a) of the Employment Act, but the employer still had to comply with section 41(2) before summary dismissal. The respondent never contacted the appellant after the three-day suspension, stopped his salary, and issued no termination notice. Following Owundu v Digital Sanitation Services Limited, an employer faced with abscondment must issue notice to the employee to render an account before terminating. Reason was valid; procedure was unfair.

p. 5
03

Whether the appellant was entitled to the reliefs sought

Holding

Notice pay and accrued leave (limited to 18 months, 39 days) awarded; severance and 12 months' compensation refused; certificate of service ordered

Reasoning

The appellant was entitled to one month's notice pay under section 35(1)(c) for the procedural unfairness. Leave was allowed only for the last 18 months per section 28(4), applying the reasoning in Peter Kariuki Gachiri. Severance depends on proven redundancy, which failed. Compensation for unlawful termination was refused because the reason for termination was valid misconduct, and notice pay sufficed for the procedural defect. A certificate of service is a statutory right under section 51.

p. 7

Legal principles established

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  • The burden of proving redundancy rests on the employee who alleges it; it does not shift to the employer until discharged
  • Even in cases of gross misconduct such as absconding work, the employer must still comply with procedural fairness under section 41(2) of the Employment Act before summary dismissal
  • Dismissal need not be in writing; stopping the salary of an employee who is no longer under suspension and not at work is tantamount to dismissal
  • Accrued leave is limited to the 18 months following the leave-earning period under section 28(4) of the Employment Act

Court orders

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  1. 1.Judgment of Hon M.W Murage (PM) delivered on 9th June 2023 in Milimani MCELRC No. E436 of 2022 set aside and substituted
  2. 2.Notice pay in lieu of Kshs. 16,900 awarded
  3. 3.Accrued leave pay in lieu of Kshs. 21,970 awarded
  4. 4.Interest at court rates from the date of judgment at the lower court until payment in full
  5. 5.Costs of the suit awarded
  6. 6.A certificate of service to be issued under section 51 of the Employment Act
  7. 7.Appellant awarded costs at appeal
  8. 8.Stay of 30 days granted

Authorities

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Legislation

  • Employment Actdefinition of redundancy; sections 28(1), 28(4), 35(1)(c), 40(1), 40(1)(g), 41(2), 43(1)-(2), 44(4)(a), 45(5), 47(5), 51
  • Evidence Actsections 107(1)-(2), 108, 109
  • Employment Actsection 18(5)(b)

Cases cited (4)

  • Abok James Odera T/A A.J Odera & Associates v John Patrick Machira T/A Machira & Co. Advocates
    [2013] KECA 208 (KLR)
  • Selle & Another v Associated Motor Boat Co. Ltd & Others
    (1948) EA 123
  • Owundu v Digital Sanitation Services Limited
    (2024) eKLR
  • Peter Kariuki Gachiri V Kenya Baptist Theological College
    (2019) eKLR
On appeal from
Milimani Magistrate's Court (Employment and Labour Relations)
MCELRC No. E436 of 2022
Jurisdiction invoked
First appeal from the trial magistrate's court under the Employment and Labour Relations Court's appellate jurisdiction

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Komu v Sana Industries Limited (Appeal E107 of 2023) [2025] KEELRC 75 (KLR)", Case Analysis (2025). Appeal against Judgment in Milimani MCELRC No. E436 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/75/eng@2025-01-23

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