Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCDismissed· [2025] KEELRC 859 (KLR)

Villa Sandra Company Limited v Matete (Employment and Labour Relations Appeal E115 of 2024) [2025] KEELRC 859 (KLR)

Employment and Labour Relations Court
14 March 2025
5,199 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

#

A Kenyan employer lost its appeal and must pay a former worker over Kshs. 300,000 after the court found he was a permanent employee, not a casual worker.

What this practically means

#

Executive summary

#
This is the judgment of the Employment and Labour Relations Court at Nairobi (J.W. Keli, J) dismissing an appeal against the judgment of the Honourable S.N Muchungi (PM) delivered on 8th March 2024 in Nairobi MCELRC No. E633 of 2022, which had found in favour of the claimant (now respondent). The respondent pleaded an oral contract of employment from 2014 as cleaner, caretaker and driver of the appellant's hostels at a monthly salary of Kshs. 12,000, and claimed he was constructively dismissed in August 2021 through non-payment of salary, salary reduction and replacement by an agent. The trial court awarded him Kshs. 303,543.90 comprising unpaid salary, notice pay, underpayment, unpaid leave, service pay and compensation for unlawful termination. On appeal, the appellant contended there was no employment relationship, that the claimant was a casual worker, and that the trial court relied on inadmissible hearsay. The court applied Selle v Associated Motor Boat Co and Mbogo v Shah, and found the respondent had proved the employment relationship on a balance of probabilities, corroborated by an M-PESA statement and the evidence of CW2 and the appellant's own agent (RW1). Applying section 37 of the Employment Act, the court held any casual engagement converted to a monthly contract of service. The appellant did not submit on the reliefs awarded, and the court found no basis to disturb the trial court's award. The appeal was dismissed with costs to the respondent, and 30 days' stay was granted.

Key legal issues

#
01

Existence of an employment relationship between the parties

Holding

The respondent proved on a balance of probabilities an oral contract of employment as cleaner/caretaker/driver from 2014 to 2021 at a monthly salary of Kshs. 12,000, corroborated by an M-PESA statement and by the appellant's own witness; the casual-employment characterisation failed and the engagement converted to a term contract under section 37 of the Employment Act.

Reasoning

The claimant pleaded the employment relationship with precision, produced an M-PESA statement showing a Kshs. 12,000 payment from a director, and his evidence was corroborated by CW2 and by RW1 (the appellant's agent), who found the claimant working and confirmed he had been paid Kshs. 12,000 monthly. The appellant's defence admitted the monies received. The appellant failed to rebut this evidence, and section 47(5) of the Employment Act placed the burden of justification on it.

p. 9
02

Whether the trial court erred in its decision on relief

Holding

The trial court's award (unpaid salary, notice pay, underpayment, unpaid leave, service pay and compensation for unlawful termination) was upheld; the appellant did not submit on the reliefs and no basis existed to disturb the award.

Reasoning

Guided by Mbogo v Shah, the appellate court will not interfere with an inferior court's discretion unless the decision is clearly wrong. Considering the evidence of monthly salary of Kshs. 12,000, the Minimum Wages Orders of 2017 and 2018, the claimant's replacement by an agent without reason, and that he never went on leave, the court found no basis to disturb the award. The appellant did not submit on the reliefs awarded.

p. 10

Legal principles established

#
  • An appellate court will not interfere with the exercise of discretion by an inferior court unless the decision is clearly wrong
  • A casual employee who works for a period equivalent to not less than one month is deemed converted to a monthly contract of service under section 37 of the Employment Act
  • The burden of proving unfair termination rests on the employee, while the burden of justifying the grounds of termination rests on the employer (section 47(5), Employment Act)

Court orders

#
  1. 1.The Judgment and Decree of the Honourable S.N Muchungi (PM) delivered at Nairobi on 8th March 2024 in Nairobi MCELRC No. E633 of 2022 is upheld
  2. 2.The appeal is dismissed with costs to the Respondent
  3. 3.30 days' stay is granted

Authorities

#

Legislation

  • Evidence ActSection 107
  • Evidence ActSection 109
  • Employment Act, 2007Section 9
  • Employment Act, 2007Section 18
  • Employment Act, 2007Section 35(1)(c)
  • Employment Act, 2007Section 37
  • Employment Act, 2007Section 45(2) and 45(4)(b)
  • Employment Act, 2007Section 47(5)
  • Minimum Wages Orders2017 and 2018

Cases cited (5)

  • Selle v Associated Motor Boat Co
    [1968] EA 123
  • Mbogo v Shah
    [1968] EA
  • Protus Wanjala Murike -v- Aglo African Properties t/a Jambo Mutara Lodge Laikipia
    (2021) eKLR
  • Casmir Nyakundi Nyaberi -v- Mwakikar Agencies Limited
    (2016) eKLR
  • Coca-Cola East And Central Africa Limited V Maria Kagai Ligaga
    2015 eKLR
On appeal from
Magistrates' Court (Employment and Labour Relations, Nairobi)
Nairobi MCELRC No. E633 of 2022
Jurisdiction invoked
First appellate jurisdiction of the Employment and Labour Relations Court over appeals from the magistrates' court in employment matters

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Villa Sandra Company Limited v Matete (Employment and Labour Relations Appeal E115 of 2024) [2025] KEELRC 859 (KLR)", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/859/eng@2025-03-14

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