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ELRCPartially AllowedELRC Appeal from Mombasa CMELRC No. 83 of 2020· [2025] KEELRC 785 (KLR)

Motrex Limited v Koech (Appeal E200 of 2024) [2025] KEELRC 785 (KLR)

Employment and Labour Relations Court
6 March 2025
2,477 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court cut a driver's unfair termination award from Ksh.814,271 to about Ksh.39,000 because the employer skipped proper disciplinary procedure but the employee's own conduct justified only minimal compensation.

What this practically means

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Executive summary

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This was a first appeal from the judgment of the Mombasa magistrates' court (CMELRC No. 83 of 2020) delivered on 16 November 2023, in which the respondent, a driver, was awarded Ksh.814,271 for unfair termination of employment. The appellant employer appealed on grounds that a valid reason existed (speeding at 82kmph and violation of company policy and NTSA regulations), that the respondent was invited to disciplinary hearings, and that terminal dues already paid were not deducted. The court reassessed the record. It accepted that the respondent knew of the 16 October 2019 allegations, apologised, and accepted a final warning. However, the 23 November 2019 disciplinary process had no record of notice, minutes or procedure, and the alleged confession was not filed, breaching Section 41 of the Employment Act and rendering the termination procedurally unfair; notice pay remained due. The maximum 12 months' compensation was set aside for want of justification under Sections 45(5)(b) and 49 of the Employment Act, with one month's compensation (Ksh.35,000) substituted, considering the respondent's conduct and prior warning. Leave claims beyond 18 months were held time-barred and already paid; the general public holiday claim failed for lack of particulars. The appeal was allowed in part, with a balance in notice pay of Ksh.4,373 and one month's compensation awarded, less acknowledged payments. Each party was ordered to bear its own costs in the trial court and the appeal.

Key legal issues

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01

Procedural fairness of the 23 November 2019 termination

Holding

Termination on 23 November 2019 was procedurally unfair because there was no record of notice, procedure or minutes of the disciplinary process.

Reasoning

While the minutes of 16 October 2019 showed notice with a shop steward present, the second disciplinary process of 23 November 2019 had no record of procedure. The alleged confession was not filed. Failure to adhere to Section 41 rendered the process unfair and notice pay is due.

p. 4
02

Quantum of compensation under Section 49

Holding

Maximum 12 months' compensation set aside; one month's compensation awarded considering the employee's conduct.

Reasoning

The trial court gave no reasons for the maximum award. The respondent was on a last warning for a similar offence and had apologised on 16 October 2019, which under Section 45(5)(b) places him in poor standing for maximum compensation.

p. 5
03

Limitation on leave claims

Holding

Leave claims beyond 18 months time-barred; 2019 accrued leave already paid.

Reasoning

Section 28(4) limits leave claims to 18 months and Section 89 bars older claims. The clearance form of 26 November 2019 shows payment of 19.25 leave days.

p. 5
04

Deduction of terminal dues already paid

Holding

Amounts acknowledged as paid (notice pay Ksh.30,627, leave pay, salary for days worked, less advance) to be taken into account.

Reasoning

The clearance form of 26 November 2019 itemised payments. The court held the balance notice pay is Ksh.4,373 and any award is to be paid less what is acknowledged.

p. 5

Legal principles established

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  • Due process under Sections 41 and 44 of the Employment Act requires that even an employee who has committed gross misconduct be allowed to attend a hearing and make representations in the presence of another employee of his choice.
  • Procedural fairness requires advance and reasonable notice of disciplinary steps and time for an employee to prepare.
  • An award of maximum 12 months' compensation under Section 49 of the Employment Act must be rationalised and supported by cogent reasons.
  • Costs in employment claims must be rationalised under Section 12(4) of the ELRC Act and good cause established.
  • Public holiday claims must be particularised; a general claim is unsustainable.

Court orders

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  1. 1.Appeal allowed save that the respondent is awarded a balance in notice pay of Ksh.4,373 and compensation of one month at Ksh.35,000, to be paid less what is acknowledged, whichever is higher
  2. 2.Claims for accrued leave days beyond 18 months and general holiday pay dismissed
  3. 3.Each party to bear its own costs in the trial court and this appeal

Authorities

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Legislation

  • Employment ActSections 28(4), 35, 41, 43, 44, 45, 45(4)(b), 45(5)(b), 49, 89, 90
  • Employment and Labour Relations Court ActSection 12(4)

Cases cited (7)

  • Sheila Khaoya Akaliche v ArtCaffe Coffee and Bakery Limited
    [2021] eKLR
  • John Rioba Maugo v Riley Falcon Security Limited
    [2016] eKLR
  • Reef Hotel Limited v Josephine Chivatsi
    [2021] eKLR
  • Kenya Plantation and Agricultural Workers Union v Eastern Produce (K) Limited
    [2022] eKLR
  • Patrick Abuya v Institute of Certified Public Accountants of Kenya (ICPAK) & another
    [2015] eKLR
  • Gas Kenya Limited v Odhiambo
    (Appeal E006 of 2022) [2022] KEELRC 3930 (KLR)
  • Kenya Broadcasting Corporation v Geoffrey Wakio
    [2019] eKLR
On appeal from
Magistrates' Court (ELRC), Mombasa
CMELRC No. 83 of 2020
Jurisdiction invoked
First appeal under the Employment and Labour Relations Court Act and the Employment Act (appeal against magistrate's judgment in employment claim)

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, "Motrex Limited v Koech (Appeal E200 of 2024) [2025] KEELRC 785 (KLR)", Case Analysis (2025). ELRC Appeal from Mombasa CMELRC No. 83 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/785/eng@2025-03-06

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