Pride Inn Paradise Beach Resort & Spa v Rai & 6 others (Appeal E183 of 2024) [2025] KEELRC 1100 (KLR)
The bottom line
#Sarova Whitesands lost its appeal mostly: its former room stewards were protected employees, but claims for extra hours and service charge failed for lack of evidence.
What this practically means
#Executive summary
#Key legal issues
#Conversion of casual employment under section 37 of the Employment Act
The learned magistrate correctly found that the respondents' employment converted from casual terms to employment protected under the Employment Act
Section 2 defines a casual employee as one paid at the end of each day and not engaged for longer than 24 hours. The respondents worked recurring weekly schedules and were paid weekly, not daily. Under section 37(1), continuous service amounting to one month, or work not reasonably expected to be completed within three months, converts the engagement into protected employment, entitling the employees to notice and due process on termination.
Entitlement to notice pay and compensation for unfair termination
Termination without notice entitled the respondents to the rights under section 37, as awarded by the trial court
Having found the respondents were protected employees, termination without notice or due process entitled them to notice pay and compensation. The magistrate's differentiation of compensation by length of service was unobjectionable. The awards for notice pay, leave pay and compensation therefore stand.
Awards for extra hours and service charge
The awards for extra hours and service charge were unjustified and are set aside
No particulars or evidence supported the extra-hours claim beyond the stated 8-hour workday. Service charge arises only under a written contract, private treaty or CBA, and no special terms were proved. The appeal thus succeeds only to that extent.
Legal principles established
#- A casual employee is one paid at the end of each day and not engaged for longer than twenty-four hours at a time
- A casual employee who works continuously for one month or more, or whose work cannot be completed within three months, is converted to employment protected under section 37 of the Employment Act
- On a first appeal the court must reassess and review the record and draw its own conclusions, while appreciating that the trial court saw and heard the witnesses
Court orders
#- 1.The awards in Mombasa CMELRC No. 422 of 2019 for extra hours and service charge are set aside
- 2.The awards for notice pay, leave pay, compensation and costs shall remain as awarded by the trial court
- On appeal from
- Magistrates' Court (ELRC), Mombasa
- Mombasa CMELRC No. 422 of 2019
- Jurisdiction invoked
- First appellate jurisdiction over the subordinate court's ELRC judgment (appeal on grounds of law and fact)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Pride Inn Paradise Beach Resort & Spa v Rai & 6 others (Appeal E183 of 2024) [2025] KEELRC 1100 (KLR)", Case Analysis (2025). Appeal from Mombasa CMELRC No. 422 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1100/eng@2025-04-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.