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ELRCPartially Allowed· [2025] KEELRC 1440 (KLR)

Amuiri Investment v Aswani (Employment and Labour Relations Appeal E092 of 2021) [2025] KEELRC 1440 (KLR)

Employment and Labour Relations Court (presided over by a Judge at Nairobi)
15 May 2025
3,225 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan employment appeal cut a former caretaker's award from nearly KES 1.2 million to KES 234,613.85, showing employers win when they keep records and employees lose when they never raise grievances in writing.

What this practically means

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Executive summary

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This is a first appeal from the judgment of Hon. A. M. Obura (Mrs) CM at Milimani Commercial Court, Nairobi dated 19/8/2021, which dismissed the Claimant's claim for unfair and unlawful (constructive) dismissal but awarded terminal benefits: leave days not taken, unpaid public holidays, underpayment on the basis that the Claimant was a caretaker, house allowance and service pay. The Appellant appealed against the awards on nine grounds. The court, guided by the first-appeal duty to re-evaluate the evidence, noted there was no cross-appeal, so the finding that constructive dismissal was not proved was not in issue. On the merits, the court set aside the award for leave days not taken, holding that the un-discredited oral evidence of RW1 corroborated by RW2 that the Claimant took three weeks' leave every December discharged the employer's burden of rebuttal under sections 107 and 108 of the Evidence Act. It upheld the award for unpaid public holidays (Kshs. 56,760.00), finding the employer's failure to keep records meant it had not discharged its burden under section 10(7) of the Employment Act, and that the claim was a continuous injury not time barred under section 90. It set aside the awards for underpayment and house allowance because the Respondent failed to discharge the primary onus, having made no documented claim about his employment status or salary consolidation during the 10-year employment. It upheld service pay of Kshs. 177,853.85 since the Appellant adduced no evidence of NSSF or pension provision. The total award upheld was Kshs. 234,613.85, with a certificate of service, interest at court rates from 19/8/2021, and costs of the suit.

Key legal issues

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01

Whether the trial court erred in awarding payment in lieu of leave days not taken

Holding

The award was set aside; the uncontradicted and un-discredited oral evidence of RW1 corroborated by RW2 that the Claimant took three weeks' leave every December was sufficient to discharge the employer's burden of rebuttal under sections 107 and 108 of the Evidence Act.

Reasoning

The trial court relied solely on the absence of documentary evidence without making any finding on the credibility of RW1 and RW2, who testified that the Respondent went on leave every December and was relieved by RW2. The appellate court held that oral evidence not discredited was sufficient to rebut the claim, and that the Respondent failed to explain why leave would be denied for three years after ten years of consistently taking leave.

p. 5
02

Whether the award for unpaid public holidays was justified

Holding

Upheld; the Appellant, having failed to keep records, did not discharge its burden of rebuttal under section 10(7) of the Employment Act, and the claim was a continuous injury not time barred under section 90.

Reasoning

RW1 testified in rebuttal of the claim for 22 unpaid public holidays without offering any oral or documentary evidence. Because the employer failed to keep records as required by the Employment Act, the statutory burden of disproving the claim remained on it. The court also found the claim was a continuing injury exempt from the section 90 limitation period.

p. 6
03

Whether the claims for underpayment (caretaker vs cleaner) and house allowance were proved

Holding

Set aside; the Respondent failed to discharge the primary onus under sections 107 and 108 of the Evidence Act, having made no documented claim during the 10-year employment regarding his status or the consolidation of his salary.

Reasoning

The trial court again relied only on the employer's failure to produce a contract. The appellate court held the employee was also obliged to show he had raised the status of his employment and the consolidation of his salary during the employment. The inconsistency of claiming underpayment from 2015 but house allowance only from 2016, while not disputing the salary history given by RW1, undermined the claims.

p. 6
04

Whether the award of service pay was justified

Holding

Upheld; the employer adduced no evidence of NSSF, pension or provident fund contributions and did not testify on the issue, so failed to rebut the claim under section 35(5) as read with 35(6) of the Employment Act.

Reasoning

Service pay arises either by contract or upon demonstration that the employer did not provide social security or pension. The onus of demonstrating compliance with section 35 lies on the employer by producing pay slips or NSSF/pension statements. The Appellant did not testify at all on this, completely failing to rebut the claim, and the trial magistrate's award of Kshs. 177,853.85 was upheld.

p. 7

Legal principles established

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  • On a first appeal the court must re-evaluate, re-assess and re-analyze the evidence on the record and determine whether the conclusions reached by the trial court should stand, giving reasons either way.
  • Where an employer fails to keep records required under sections 10(7) and 74 of the Employment Act, the burden of proving or disproving the alleged term of employment falls on the employer.
  • Trial court findings on claims not subjected to a cross-appeal are not in issue and will not be disturbed.
  • Service pay is payable either under the contract or where the employer did not provide social security or pension, under section 35(5) as read with 35(6) of the Employment Act; an employer who does not testify on this completely fails to rebut the claim.

Court orders

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  1. 1.Upheld the award of Kshs. 56,760.00 for unpaid public holidays
  2. 2.Upheld the award of Kshs. 177,853.85 as service pay
  3. 3.Provision of certificate of service
  4. 4.Total award of Kshs. 234,613.85
  5. 5.Interest at court rates from the date of judgment of the trial court on 19/8/2021 till payment in full
  6. 6.Costs of the suit
  7. 7.Set aside the judgment of the trial court in respect of the other awards (leave days not taken, underpayment and house allowance)

Authorities

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Legislation

  • Employment ActSection 10(7)
  • Employment ActSection 74(1)(f) and (i)
  • Employment ActSection 35(5) as read with 35(6)
  • Employment ActSection 90
  • Evidence Act Cap 80 Laws of KenyaSections 107 and 108

Cases cited (2)

  • Abok James Odera t/a A. J. Odera & Associates versus John Patrick Macharia t/a Macharia and C. Advocates
    [2013] eKLR
  • Gitobu Imanyara and 2 others versus Attorney General
    [2016] eKLR
On appeal from
Milimani Commercial Court, Nairobi (Chief Magistrate's Court)
not stated
Jurisdiction invoked
First appeal from the trial magistrate's court (the judgment does not cite a specific constitutional or statutory jurisdictional provision)

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, "Amuiri Investment v Aswani (Employment and Labour Relations Appeal E092 of 2021) [2025] KEELRC 1440 (KLR)", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1440/eng@2025-05-15

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