Ouma v Tradecare Africa Limited (Cause E510 of 2020) [2025] KEELRC 1532 (KLR)
The bottom line
#A Kenyan court awarded an accounts assistant Kshs. 223,500 after his employer fired him without a hearing, and confirmed the ELRC can hear salary claims below Kshs. 80,000.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction of the ELRC where monthly salary is below Kshs. 80,000
The ELRC retains residual jurisdiction over employment matters notwithstanding Gazette Notice No 6024 of 2018 conferring jurisdiction on Magistrates' Courts.
The Respondent argued that because the Claimant's monthly salary was below Kshs. 80,000, the ELRC lacked jurisdiction. The Court held that the Gazette Notice donated jurisdiction to Magistrates' Courts but did not divest the ELRC of its residual jurisdiction, relying on its own prior decision in Linotic Floor Company Limited v Kamau. Consequently, no employment claim filed in the ELRC is fatally defective on salary grounds.
Procedural fairness in termination during probation
The termination was wrongful and unfair because the Respondent did not comply with Section 41 of the Employment Act, and the accusations were unsubstantiated and unproved.
The termination letter accused the Claimant of failing to perform duties and creating a parallel sales system, amounting to gross misconduct. Section 41 of the Employment Act requires the employer to explain the reasons and hear the employee before termination on grounds of misconduct. The Respondent made no attempt to comply with these mandatory procedural fairness requirements, and the Respondent presented no witness to substantiate the accusations, rendering the dismissal wrongful and unfair.
Remedies for unlawful and unfair termination
Reinstatement declined; compensation of three months' salary, two weeks' salary in lieu of notice, and unpaid salary for November and December 2019 awarded.
Reinstatement was inappropriate given the time lapse since separation. In assessing compensation the Court considered the Claimant's short stint of employment and the Respondent's failure to accord him a hearing. The unpaid salary claims succeeded in the absence of evidence to the contrary, the Respondent having adduced no evidence.
Legal principles established
#- The Gazette Notice conferring jurisdiction on Magistrates' Courts over employment claims with monthly salaries not exceeding Kshs. 80,000 did not divest the ELRC of its residual jurisdiction; no employment claim filed in the ELRC is fatally defective on this basis.
- An employer must comply with the mandatory procedural fairness requirements of Section 41 of the Employment Act, including hearing the employee, before termination on grounds of misconduct.
Court orders
#- 1.Judgment entered in favour of the Claimant for Kshs. 223,500 (3 months' salary compensation of Kshs. 135,000; 2 weeks' salary in lieu of notice of Kshs. 22,500; salary for November 2019 of Kshs. 45,000; salary for December 2019 of Kshs. 21,000)
- 2.Interest at court rates from the date of judgment until payment in full
- 3.Claimant awarded costs of the case
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment and labour relations matters (Gazette Notice No 6024 of 2018 discussed)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ouma v Tradecare Africa Limited (Cause E510 of 2020) [2025] KEELRC 1532 (KLR)", Case Analysis (2025). Cause No E510 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1532/eng@2025-05-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.