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ELRCPartially AllowedNot stated in judgment· [2025] KEELRC 1460 (KLR)

Seventh Day Adventist Church (EA) Limited & another v Onderi (Appeal E003 of 2025) [2025] KEELRC 1460 (KLR)

Employment and Labour Relations Court
15 May 2025
2,243 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed a pastor's dismissal was unfair because the employer proved no reason, but reinstatement was barred by the three-year statutory deadline.

What this practically means

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Executive summary

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The Respondent, a pastor employed by the Appellants, sued before the Magistrate's Court at Ogembo claiming unfair termination following allegations of sexual misconduct and a dismissal on 17th June 2019 after a disciplinary hearing. He sought reinstatement, salary in lieu of notice, service pay, damages, leave pay, pension refund and costs. The Appellants entered appearance but filed no defence and called no witnesses. On 28th August 2024 the Learned Magistrate found the termination substantively and procedurally unfair, ordered reinstatement with full salary for the period out of employment. The Appellants appealed, arguing that reinstatement was granted without regard to section 49(4) of the Employment Act and outside the three-year limit in section 12(3)(vii) of the Employment and Labour Relations Act, and that back salary was contrary to the doctrine that salary rewards work done. The Respondent maintained the appeal was incompetent and that the Appellants' case was uncontroverted. Applying the first-appeal standard in Selle v Associated Motor Boat Co, the Court upheld the finding of unfair termination under section 43 of the Employment Act, given the employer's failure to prove reasons for dismissal. However, it held reinstatement erroneous as the statutory period had lapsed, and set aside the trial judgment, substituting a declaration of unfair dismissal, 12 months' salary as compensation, re-engagement on the same terms with no loss of benefits, and costs of the suit before the Magistrate's Court, with no order on the costs of the appeal.

Key legal issues

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01

Whether the reinstatement ordered by the trial court was lawful

Holding

The reinstatement was erroneous because the statutory three-year period under section 12(3)(vii) of the Employment and Labour Relations Act had elapsed; re-engagement and compensation were substituted.

Reasoning

While the trial court was entitled to grant reliefs for unfair termination, reinstatement was time-barred since more than three years had passed from dismissal. The Court substituted the remedy of 12 months' salary as compensation and ordered re-engagement on the same terms with no loss of benefits, in line with Employment Act remedies of re-engagement or compensation.

p. 5
02

Burden of proving reasons for termination

Holding

Under section 43 of the Employment Act the employer must prove the reasons for termination; the Appellants offered no defence or evidence, so the termination was unfair.

Reasoning

Section 43 imposes a reverse burden on the employer to tender reasons satisfying the statutory test; where no reason is proved, termination is unfair under section 45. The Appellants entered appearance but filed no defence, called no witnesses and left the Respondent's testimony unchallenged, so the finding of both substantive and procedural unfairness stood, justifying the declaration and compensation.

p. 4
03

Whether back salary is recoverable upon reinstatement

Holding

Salary is an entitlement, not a common law reward for work done; reinstatement can be accompanied by back pay, but here backpay was displaced by the compensation award.

Reasoning

The Court corrected the Appellants' contention that the common law doctrine that salary is a reward for work done bars salary arrears. Employment law is a special area; reinstatement can include back pay, as the cited TSC v Olale decision recognised. However, since reinstatement itself was set aside, the Court substituted 12 months' salary compensation instead of backpay.

p. 4

Legal principles established

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  • A first appellate court must reconsider the evidence, evaluate it afresh and draw its own conclusions while making allowance for not having seen or heard the witnesses.
  • Salary is an entitlement of the employee, not a common law reward for work done; reinstatement can be ordered with back pay.
  • Under section 43 of the Employment Act, the employer bears the burden of proving the reasons for termination, failing which the termination is unfair.

Court orders

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  1. 1.A declaration issued that the dismissal of the Respondent was unfair and unlawful within the meaning of section 43
  2. 2.An award of 12 month's salary compensation for the dismissal
  3. 3.Re-engagement of the Respondent on the same terms with no loss of benefits
  4. 4.Costs of the suit before the Magistrate's Court awarded to the Respondent
On appeal from
Magistrate's Court at Ogembo
Not stated in judgment
Jurisdiction invoked
First appellate jurisdiction over the Magistrate's Court claim decided under the Employment Act

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, "Seventh Day Adventist Church (EA) Limited & another v Onderi (Appeal E003 of 2025) [2025] KEELRC 1460 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1460/eng@2025-05-15

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