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ELRCDismissedNot stated in the judgment (Cause filed 11 December 2024)· [2025] KEELRC 1058 (KLR)

Kinoti & 2 others v Directline Assurance Company Limited (Cause E1059 of 2024) [2025] KEELRC 1058 (KLR)

Employment and Labour Relations Court
3 April 2025
RSRadido Stephen
1,592 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court refused to shield three employees from dismissal mid-case, ruling such disputes need full evidence—not interim orders.

What this practically means

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Executive summary

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Three employees of Directline Assurance Co. Ltd were sent on compulsory leave on 6 December 2024 by letters referring to investigations and a forensic audit commissioned by the Insurance Regulatory Authority. They sued on 11 December 2024 claiming constructive dismissal, violations of Articles 35 and 41, breach of contract, and sought declarations, a permanent injunction against termination, salary and allowances for the leave period, clarifying memos and costs, alongside a Motion for interim restraint against termination, reinstatement, and suspension of the compulsory leave letters. The Respondent filed a preliminary objection on 16 December 2024 arguing that constructive dismissal requires prior resignation, and later a second objection invoking the Coca-Cola v Ligaga, Macfoy and Mukisa Biscuits authorities. The Respondent also deponed that the 2nd and 3rd Claimants had settled and resumed duty, that a forensic audit implicated the 1st Claimant in financial malpractice, and that a termination notice for her was on hold due to court orders. The Court declined to address the second preliminary objection because it was filed after directions without an opportunity for the Claimants to respond. Holding that disputed facts and alleged fair labour rights violations cannot be evaluated at the interlocutory stage, and that preserving employment in an allegedly hostile work environment would be antithetical to constructive dismissal doctrine, the Court dismissed the Motion and denied the Respondent costs for missing filing milestones. The 2nd and 3rd Claimants received no orders given the unrebutted settlement. The main Cause proceeds to full hearing.

Key legal issues

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01

Whether interlocutory injunction and reinstatement orders should issue pending trial

Holding

The Motion was dismissed; the court declined to preserve the employment relationship at an interlocutory stage in a case premised on constructive dismissal

Reasoning

The gravamen of the claim was constructive dismissal on the basis of a hostile work environment. Granting orders requiring employees to render services would contradict the very doctrine pleaded. Whether fair labour rights were violated required testing of evidence from both parties, which cannot be done at the interlocutory stage. For the 2nd and 3rd Claimants, the unrebutted deposition of settlement and resumption of duty made orders imprudent.

p. 4
02

Treatment of a preliminary objection filed out of sequence after directions

Holding

The second Notice of Preliminary Objection filed 7 March 2025 was not addressed because the Claimants had no opportunity to respond

Reasoning

The objection was filed after the Court had issued directions and after submissions timelines had lapsed. Procedural fairness required that the Claimants be granted an opportunity to respond before the Court could rule on it, so the Court declined to address it in the Ruling.

p. 4

Legal principles established

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  • A court at the interlocutory stage should not interrogate disputed facts or evaluate alleged violations of fair labour rights before evidence is tested
  • The court will not entertain a preliminary objection filed after directions have been given and to which the opposing party has had no opportunity to respond
  • Where deponed settlement and resumption of duty are unrebutted, no interlocutory orders will issue in favour of those claimants

Court orders

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  1. 1.The Motion dated 11 December 2024 is dismissed
  2. 2.The Respondent is denied costs of the Motion
  3. 3.The Respondent's second Notice of Preliminary Objection filed on 7 March 2025 is not addressed, having been filed after directions were given and without the Claimants being given an opportunity to respond
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Articles 35 and 41 of the Constitution pleaded by the Claimants; specific enabling provision not stated in the judgment)

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, "Kinoti & 2 others v Directline Assurance Company Limited (Cause E1059 of 2024) [2025] KEELRC 1058 (KLR)", Case Analysis (2025). Not stated in the judgment (Cause filed 11 December 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1058/eng@2025-04-03

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