Muriu v Njuca Consolidated Limited (Employment and Labour Relations Cause E025 of 2024) [2025] KEELRC 363 (KLR)
The bottom line
#Kenya's ELRC in Nyeri ruled that forced resignation through employer frustration counts as unfair constructive dismissal, awarding an employee over Kshs.1.3 million.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the resignation amounted to constructive dismissal.
- 2.Whether the claimant is entitled to the reliefs sought.
Key legal issues
#Whether the claimant's resignation amounted to constructive dismissal
The resignation was involuntary and amounted to constructive dismissal caused by the employer's fundamental breach - unending compulsory leave without investigation outcome, repossession of his car, and payment of salary in small instalments.
The court applied the Coca Cola v Ligaga principles: the employer's conduct must be a fundamental breach going to the root of the contract, evaluated objectively. The claimant's uncontroverted evidence showed he was sent on compulsory leave, never recalled, never given the investigation report or a chance to explain, and was paid in small bits. A clear link existed between the resignation and the employer's conduct, proved on a balance of probability.
Entitlement to compensation under section 49(1)(c) of the Employment Act
The claimant was entitled to compensation of twelve months' gross salary (Kshs.1,140,000) given his 22 years of unblemished service and non-contribution to the termination through misconduct.
Constructive dismissal is unfair and unlawful as it is not grounded on the employee's conduct and no fair procedure is followed. Taking into account the claimant's long service of 22 years, the certificate of appreciation, and the fact that the alleged misconduct was never communicated to him nor proven, twelve months' gross salary at Kshs.95,000 was held reasonable.
Effect of failure by the respondent to adduce evidence
The respondent's defence, alleging absconding and limitation, remained unsubstantiated and the claimant's evidence stood uncontroverted.
Despite filing a response denying the claim and asserting the claim was statute-barred, the respondent neither attended the defence hearing nor filed witness statements. Relying on Linus Ng'ang'a Kiongo v Town Council of Kikuyu, the court held that pleadings unsupported by evidence remain mere statements of fact, leaving the claimant's evidence unrebutted.
Legal principles established
#- Where a respondent files a defence but fails to adduce evidence at the hearing, the defence remains a mere statement of unsubstantiated facts and the claimant's evidence is uncontroverted and unrebutted.
- Constructive dismissal occurs where an employee involuntarily resigns due to the employer's conduct; the focus is on the employer's conduct, tested objectively, amounting to fundamental breach.
Court orders
#- 1.A declaration that the claimant was constructively dismissed from employment by the respondent
- 2.Compensation of twelve (12) months gross salary at Kshs.1,140,000.00
- 3.Salary arrears for August to December 2023 of Kshs.198,627.00, total judgment of Kshs.1,338,627.00
- 4.The award is subject to statutory deductions but in addition to costs and interest at court rate from the date of the judgment
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (section 49(1)(c) invoked for compensation)
Relief refused
#NSSF unremitted dues at Kshs.19,440 and NHIF unremitted dues at Kshs.24,000
No evidence tendered to prove the deductions were made by the respondent and not remitted
Leave arrears at Kshs.190,000 for 2019 and 2020
Leave for 2019 and 2020 had been forfeited; only accumulated leave in the current calendar year was payable on exit
Costs
The award is subject to statutory deductions but in addition to costs and interest at court rate from the date of this judgment (costs of the suit to the claimant).
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
I enter judgment for the claimant as follows: a. Compensation……………………………… Kshs.1,140,000.00 b. Salary arrears………………………………….Kshs.198,627.00 Total Kshs.1,338,627.00
The award is subject to statutory deductions but in addition to costs and interest at court rate from the date of this judgment.
in constructive dismissal, the issue to consider is the conduct of the employer and not that of the employee.
It follows that the claim is not merited because the leave had been forfeited.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Muriu v Njuca Consolidated Limited (Employment and Labour Relations Cause E025 of 2024) [2025] KEELRC 363 (KLR)", Case Analysis (2025). Statement of claim dated 30th May 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/363/eng@2025-02-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.