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ELRCPartially AllowedAppeal from MCELRC No. E2041 of 2022· [2025] KEELRC 1832 (KLR)

Mutua v Mars Security Guards Limited (Employment and Labour Relations Appeal E067 of 2024) [2025] KEELRC 1832 (KLR)

Employment and Labour Relations Court
20 June 2025
3,738 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that calling an employee an absconder without first trying to contact them is unfair termination, awarding the worker over Kshs. 230,500.

What this practically means

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Executive summary

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The appellant, a former employee of the respondent security company, appealed against the judgment of the Honourable L. Ambasi (CM) of 12 March 2024 in MCELRC No. E2041 of 2022, which dismissed his claim for unlawful termination and employment dues. He was employed as a guard supervisor/driver for over seven years and claimed he was sent on leave on 14 March 2022, never recalled, and unpaid from March to June 2022 before tendering a resignation on 27 June 2022. The respondent maintained he absconded after leave. The court, sitting as a first appellate court and applying Selle v Associated Motor Boat Co. and Mbogo v Shah, framed two issues: fairness of termination and entitlement to reliefs. It found the employer's letter of 28 April 2022 to the labour office reporting the claimant as absconding effectively terminated the employment without compliance with section 41 of the Employment Act, and without efforts to contact him despite the section 74 duty to keep records. The resignation letter of 8 August 2022 was overtaken by that event. The court held the termination unfair, set aside the trial judgment, and substituted judgment for the claimant: notice pay of Kshs. 20,500, compensation of 10 months' gross salary (Kshs. 205,000) considering his 7 years of service and work-related illness, and refund of uniform deductions of Kshs. 5,000, with interest. Claims for housing allowance, overtime, rest days, public holidays and severance failed for want of proof or inapplicability. The appellant received costs of the suit and appeal, with a 30-day stay granted.

Key legal issues

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01

Whether the termination of the appellant was fair

Holding

The termination was unfair; the employer's letter reporting the claimant as having absconded amounted to termination without complying with section 41 of the Employment Act, and the later resignation letter was overtaken by events

Reasoning

The claimant was sent on leave on 14 March 2022 and not recalled. The employer's letter of 28 April 2022 to the labour office treated his employment as ended for absconding but disclosed no efforts to reach him. Section 41 procedural requirements were not met. The resignation letter of 8 August 2022 came after the effective termination date. The trial court's contrary finding was set aside.

p. 7
02

What remedies flow from the unfair termination

Holding

Notice pay of one month (Kshs. 20,500) and compensation of 10 months' gross salary (Kshs. 205,000) awarded under section 49 of the Employment Act, together with refund of uniform deductions of Kshs. 5,000

Reasoning

On finding unfair termination, section 49 remedies apply. The court considered the claimant's 7 years of service and his illness from cold exposure, rendering him unlikely to work as a night guard again, and guided by comparable awards of other courts, settled on 10 months' gross salary. The uniform deduction was refunded as conceded.

p. 8
03

Whether the claimant was entitled to overtime, rest days, public holidays, housing allowance and severance

Holding

These heads failed: overtime was paid per contract; rest days and public holidays were not strictly proved; housing was included in the contract salary; severance applies only on redundancy

Reasoning

The court declined to re-write the parties' contract which had consolidated pay covering overtime and housing. Claims for public holidays and rest days must be strictly proved and no evidence supported them. Severance under section 42 of the Employment Act is only payable in redundancy, which this was not.

p. 9

Legal principles established

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  • Where an employer alleges an employee absconded, the employer must demonstrate efforts to contact the employee and must follow section 41 of the Employment Act before terminating
  • An employer bears the duty under section 74 of the Employment Act to keep employee records including contact details

Court orders

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  1. 1.Judgment and Decree of the Honourable L. Ambasi (CM) delivered 12 March 2024 in MCELRC No. E2041 of 2022 set aside
  2. 2.Declaration that the termination was unfair
  3. 3.Notice pay of 1 month's salary Kshs. 20,500
  4. 4.Compensation for unfair termination of 10 months' gross salary, Kshs. 205,000
  5. 5.Refund of uniform deductions Kshs. 5,000
  6. 6.Interest on the total sum of Kshs. 230,500 at court rates from date of judgment
  7. 7.Costs of the suit in the lower court to the appellant
  8. 8.Costs of the appeal to the appellant
  9. 9.Stay of 30 days granted

Authorities

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Legislation

  • Employment Actsection 74
  • Employment Actsection 41
  • Employment Actsection 49
  • Employment Actsection 42

Cases cited (5)

  • Selle v Associated Motor Boat Co.
    [1968] EA 123
  • Mbogo V Shah
    [1968] EA Page 93
  • Simon Mbithi Mbane v Inter Security Services Ltd
    [2018] eKLR
  • Wilson Kibande Abai v Kenya Tents Limited
    [2019] eKLR
  • Obonyo v Kibos Sugar & Allied Industries
    [2024] KEELRC 1392 (KLR)
On appeal from
Chief Magistrate's Court, Nairobi (Employment and Labour Relations)
MCELRC No. E2041 of 2022
Jurisdiction invoked
First appellate jurisdiction over the Chief Magistrate's Court (ELRC) appeal against judgment in MCELRC No. E2041 of 2022

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, "Mutua v Mars Security Guards Limited (Employment and Labour Relations Appeal E067 of 2024) [2025] KEELRC 1832 (KLR)", Case Analysis (2025). Appeal from MCELRC No. E2041 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1832/eng@2025-06-20

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