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ELRCPartially AllowedELRC 1695 of 2016 (formerly Nairobi CMCC No. 7973 of 2010)· [2025] KEELRC 1127 (KLR)

Murila v Presbyterian Church Hospital & another (Cause E1695 of 2016) [2025] KEELRC 1127 (KLR)

Employment and Labour Relations Court
26 March 2025
3,672 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 ruled a hospital unlawfully fired a surgeon, awarding him over Kshs.1.3 million even though the case was 20 years old.

What this practically means

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Executive summary

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This first-instance judgment of the Employment and Labour Relations Court, delivered by D. K. Njagi Marete J on 26th March 2025, determined a claim originated by Memorandum of Claim dated 5th September 2016, transferred from Nairobi Chief Magistrate's Civil Case No. 7973 of 2010. The Claimant, an Orthopaedic Surgeon employed from about 1992 and later Director of Clinical Services at the PCEA Kikuyu Hospital's Orthopaedic Rehabilitation Centre, alleged that his employment was unlawfully terminated when the Respondents sent him on three months' compulsory leave from 22nd August 2005 and subsequently issued a letter of 10th November 2005 referring him to the Wilson Rehabilitation Foundation, which had supplemented his salary. He sought a declaration of unlawful termination, unpaid salaries and allowances of Kshs.1,706,376.25, interest and costs. The Respondents denied the claim, contending the claim was time-barred, that a similar claim had been struck out on 2nd March 2012, and that from 1998 the claimant's employer was the Wilson Rehabilitation Foundation. The court framed four issues. On jurisdiction, it held the limitation objection was a non-issue, applying the principle that a suit filed in a court without jurisdiction is not a nullity but should be transferred, and that the striking out by the magistrates' court, which lacked exclusive jurisdiction under section 87(2) of the Employment Act, 2007, did not determine the claimant's right to sue. On termination, the court found the alleged contract with the Foundation unproven and held the compulsory leave and letter of reference amounted to unlawful termination. The claim was allowed with a declaration of wrongful, unfair and unlawful termination, awards totalling Kshs.1,316,739.50, costs to the Respondent, and interest at court rates from the date of judgment.

Key legal issues

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01

Jurisdiction and limitation

Holding

The court had jurisdiction; the limitation objection was a non-issue having been decided in prior rulings of the same court, and the striking out of the original suit in a court without jurisdiction did not bar the claim

Reasoning

The suit was originally filed in the magistrates' court in 2010 within the limitation period. Since section 87(2) of the Employment Act, 2007 confers exclusive jurisdiction over employment matters on the ELRC, the magistrates' court lacked jurisdiction, and its striking out of the suit did not determine the claimant's right to sue. The transfer to the ELRC in 2016 revived the case, and prior rulings of 2017 and 2020 had already settled the limitation issue.

p. 5
02

Whether termination of employment was wrongful, unfair and unlawful

Holding

The termination was unlawful; the Respondents were responsible for the unlawful termination through unprocedural interference with the employment contract

Reasoning

The court found the alleged contract with the Wilson Rehabilitation Foundation grey and unproven, preferring the claimant's account that the Foundation merely supplemented his salary while he remained the Respondents' employee. The compulsory three-month leave and the letter of 10th November 2005 referring the claimant to the Foundation amounted to unlawful termination.

p. 8
03

Entitlement to relief

Holding

The Claimant, having proved unlawful termination, was entitled to the relief sought, and the claim was allowed with damages quantified as unpaid salary and one month's pay in lieu of notice

Reasoning

Having found a case of unlawful termination, the court held the claimant entitled to the relief sought and allowed the claim, awarding unpaid salary for the periods claimed and one month's salary in lieu of notice, with costs to the Respondent and interest at court rates from the date of judgment.

p. 8

Legal principles established

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  • A suit filed in a court without jurisdiction is not a nullity per se; the proper course is to transfer it to the appropriate forum
  • The doctrine of legal separateness is of limited utility in employment and labour relations where employers devise multi-layered legal and business entities
  • Where the transferee court has exclusive jurisdiction over employment matters, striking out of a suit by a court lacking jurisdiction does not determine the claimant's right to sue

Court orders

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  1. 1.A declaration that the termination of the employment of the Claimant by the Respondent was wrongful, unfair and unlawful
  2. 2.Salary for the period between 1st January, 2005 to 11th October, 2005 - Kshs.927,027.00
  3. 3.Salary for 11th October, 2005 to 11th November, 2005 - Kshs.194,856.25
  4. 4.One (1) month's salary in lieu of notice - Kshs.194,856.25 (total of claim Kshs.1,316,739.50)
  5. 5.The costs of the claim shall be borne by the Respondent
  6. 6.Interest at the court rates from the date of the judgment till payment in full

Authorities

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Legislation

  • Employment Act, 2007section 87(2)
  • Employment Act (Cap. 226, now repealed)six years limitation period
  • Limitation of Actions Act (Cap 22)section 4(1)
  • Trustee (Perpetual Succession) Actnot specified

Cases cited (2)

  • Laban Awando Kanyo v Susan Larsen Va Utamaduni Craft Centre
    [2013] eKLR
  • Kenya Hotel Properties Ltd v Willesden Investments Ltd
    [2007] eKLR
Jurisdiction invoked
Section 87(2) of the Employment Act, 2007 - exclusive jurisdiction of the Employment and Labour Relations Court over employment and labour relations matters; suit transferred from Nairobi Chief Magistrate's Civil Case No. 7973 of 2010 by order of 26th May 2016

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, "Murila v Presbyterian Church Hospital & another (Cause E1695 of 2016) [2025] KEELRC 1127 (KLR)", Case Analysis (2025). ELRC 1695 of 2016 (formerly Nairobi CMCC No. 7973 of 2010). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1127/eng@2025-03-26

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