Deloraine Estates Limited v Shikuku (Employment and Labour Relations Appeal E020 of 2022) [2025] KEELRC 342 (KLR)
The bottom line
#A Kenyan employment appeal court ruled the employee resigned voluntarily, cancelling a Kshs 380,426 award but ordering interest for delayed payment of dues.
What this practically means
#Executive summary
#Key legal issues
#Whether the respondent voluntarily resigned or was coerced into resigning
The respondent voluntarily resigned; there was no evidence of coercion in the resignation letter dated 16th July 2017.
Applying Section 107 of the Evidence Act, the party alleging coercion must prove it. The resignation letter stated the respondent had decided to resign, and it contained no indication of threats or coercion. The respondent collected his dues roughly two years later, undermining the coercion claim. The trial court's contrary inference from the date discrepancy was erroneous.
Whether the respondent was declared redundant by the appellant
There was no evidence of redundancy; the trial court erred in finding the respondent was irregularly declared redundant.
The record contained only the resignation letter and its acceptance; nothing showed termination on account of redundancy. Redundancy under Section 40 of the Employment Act requires a fair procedure and notices, none of which appeared on the record. The court cannot act on presumption but on facts.
Whether the awards for compensation, notice pay, public holidays, annual leave and severance pay were sustainable
The awards lacked legal and evidential basis once the resignation was established, and the judgment was set aside; however, the respondent was awarded interest for the inordinate delay in paying his dues.
Having found a voluntary resignation, entitlements flowing from unfair termination or redundancy fall away, following Hassanath Wanjiru v Vanela House of Coffee where a resigned claimant was held not entitled to the prayers sought. The court nonetheless lamented the two-year delay in paying dues and compensated it with interest.
Legal principles established
#- A party alleging coercion to resign bears the burden of proving it under Section 107 of the Evidence Act; absent such proof, the resignation is treated as voluntary.
- A court cannot presume redundancy; termination on account of redundancy must be proved by facts and evidence.
Court orders
#- 1.The court ordered interest be paid to the respondent at 14% per annum from 20th July 2017 to 2019, with the appellant to calculate and settle the interest
- 2.The judgment delivered by Hon. B. Ochieng on 18th August 2022 is set aside
- 3.Each party will meet their respective costs of the appeal and of the lower court proceedings
- On appeal from
- Chief Magistrate's Court
- Not stated in the judgment
- Jurisdiction invoked
- First appellate jurisdiction over the trial magistrate's judgment in an employment claim (statutory basis not expressly stated in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Deloraine Estates Limited v Shikuku (Employment and Labour Relations Appeal E020 of 2022) [2025] KEELRC 342 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/342/eng@2025-02-12
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.