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ELRCPartially AllowedAppeal No E072 of 2023· [2025] KEELRC 337 (KLR)

Eskodoye v Carslake Nominees Limited t/a Diani Sea Resort (Appeal E072 of 2023) [2025] KEELRC 337 (KLR)

Employment and Labour Relations Court
7 February 2025
3,108 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a hotel unfairly fired its stores clerk because it proved no wrongdoing and denied her a companion at the disciplinary hearing.

What this practically means

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Executive summary

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The Appellant, formerly a Stores Clerk with the Respondent hotel, was suspended on 29th January 2020 over alleged failure to update inventory records and causing financial losses, and was summarily dismissed on 8th February 2020 under Section 44(4)(c) and (g) of the Employment Act. The trial court upheld the dismissal, dismissing all claims except Kshs.8,574 for seven untaken leave days, with each party bearing its own costs. On appeal, the ELRC re-evaluated the evidence as a first appellate court and held the termination both substantively and procedurally unfair. Substantively, the charge was not proved on a balance of probability: the Appellant's job description did not include posting invoices to the G.I.N, the Respondent produced no inventory records or audit report, and no loss was demonstrated. Procedurally, the show cause letter failed to inform the Appellant of her right to be accompanied at the disciplinary hearing, breaching Section 41. The trial court's finding of lawful termination was set aside. The court awarded three months' salary (Kshs.119,697) as compensation for unfair termination, one month's salary in lieu of notice (Kshs.39,899), and upheld the Kshs.8,574 leave award, totaling Kshs.168,170, subject to statutory deductions and interest at court rates from the date of the trial judgment. Claims for underpayment, defamation and hardship failed for want of proof. The Appellant received costs of both the appeal (taxed on the lower scale) and the suit below.

Key legal issues

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01

Whether termination was substantively unfair

Holding

Yes - the charge of failure to update inventory records was not proved on a balance of probability

Reasoning

The show cause letter accused the Appellant of intentionally failing to update store inventory records. She denied it, attributing delays to delayed posting of invoices in the G.I.N, which was not shown to be her duty per her job description. The Respondent produced no inventory records, no audit report, and no proof of loss. Summary dismissal under Section 44(4)(c) and (g) was therefore unjustified.

p. 6
02

Whether termination was procedurally unfair

Holding

Yes - Section 41 breached

Reasoning

The show cause/suspension/invitation letter did not inform the Appellant of her right to be accompanied by a fellow employee or union official at the disciplinary hearing, contrary to the mandatory provisions of Section 41 of the Employment Act.

p. 6
03

Whether reliefs were deserved

Holding

Partially - three months' compensation, one month in lieu of notice, and unpaid leave awarded; underpayment, defamation and hardship claims declined

Reasoning

Having found unfair termination, the court awarded three months' salary as compensation considering the Appellant was in her first month after the fixed-term contract lapsed. Notice pay was granted under Section 35(1)(c). Underpayment and defamation claims failed for lack of proof.

p. 6

Legal principles established

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  • Fair termination requires both substantive justification and procedural fairness
  • A first appellate court must subject the whole evidence to a fresh and exhaustive scrutiny
  • Failure to inform an employee of the right to be accompanied at a disciplinary hearing breaches Section 41 of the Employment Act

Court orders

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  1. 1.Judgment entered for the Appellant against the Respondent: compensation for unfair termination Kshs.119,697/=; payment in lieu of notice Kshs.39,899/=; unpaid leave days Kshs.8,574/=; total Kshs.168,170/=
  2. 2.Awarded sum subject to statutory deductions applicable at termination pursuant to Section 49(2) of the Employment Act
  3. 3.Interest on the awarded sum at court rates from the date of the trial court's judgment
  4. 4.Appellant awarded costs of both the appeal and proceedings in the court below; appeal costs taxed on the lower scale
  5. 5.Trial court's finding that termination was lawful and fair set aside

Authorities

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Legislation

  • Employment ActSection 44(4)(c) and (g)
  • Employment ActSection 41
  • Employment ActSection 35(1)(c)
  • Employment ActSection 49(2)

Cases cited (2)

  • Easy Coach Bus Services & Another – vs – Henry Charles Tsuma & Another (suing as the Administrators and Personal Representatives of Josephine Wayenga Tsuma)
    [2019] eKLR
  • Walter Ogal Anuro – vs – Teachers Service Commission
    [2013] eKLR
On appeal from
Mombasa Chief Magistrate's Court (Employment Case No. E066 of 2020)
E066 of 2020
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's employment decision

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, "Eskodoye v Carslake Nominees Limited t/a Diani Sea Resort (Appeal E072 of 2023) [2025] KEELRC 337 (KLR)", Case Analysis (2025). Appeal No E072 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/337/eng@2025-02-07

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