Phoenix Decorz Limited formerly known as Huzeifa Glass and Hardware v Mwambao (Appeal E003 of 2025) [2025] KEELRC 1945 (KLR)
The bottom line
#Kenya's Employment Court cut a dismissal award from 12 months' pay to one month, ruling courts must justify maximum awards and consider an employee's work record.
What this practically means
#Executive summary
#Key legal issues
#Existence of an employment relationship between the appellant and the respondent
The records produced by the appellant established an employment relationship with the respondent from July 2019 to April 2020
The appellant's own witness confirmed the respondent worked for the appellant from July 2019 to April 2020, producing salary vouchers, NSSF remittances, a leave application form and a warning letter in the appellant's name. These factors demonstrate control and regulation of the employee's conditions, satisfying the definition of an employer under section 2 of the Employment Act.
Whether the award of 12 months' compensation was justified
The trial court erred in awarding the maximum 12 months' compensation without reasons and without considering the respondent's work records, including the warning letter
Section 49 of the Employment Act requires courts to give context and rationale for compensation awards, especially the maximum award. Section 45(5) requires examination of work records. The trial court allocated 12 months without reasons and ignored the warning letter dated 4 January 2020 for going off duty without approval. Compensation of one month's gross wage was appropriate given the short employment of less than one year.
Whether judgment could be entered jointly and severally against the appellant and Huzeifa Glass And Hardware
The appellant was found to be the respondent's employer from July 2019 and remains jointly and severally liable with Huzeifa Glass And Hardware for the reduced award
The appellant's witness confirmed the respondent worked for the appellant from July 2019 to April 2020, with the appellant remitting NSSF dues and managing leave. The role of Huzeifa Glass And Hardware ended in July 2019 when the appellant employed the respondent. Both entities are therefore jointly and severally liable for the reduced compensation and notice pay.
The remaining heads of claim (notice pay, leave, gratuity, house allowance, NSSF dues, certificate of service)
Notice pay of one month's wage was due; leave, gratuity, house allowance and NSSF claims failed; a certificate of service was ordered
The trial court only awarded compensation without addressing the other claims. Each claim must be assessed and rationalised. Notice pay of Ksh.750 was due but not awarded, so it is now awarded at Ksh.18,750. Leave could not have accumulated for 11 years since evidence showed leave was taken. Gratuity requires a written contract. The wage exceeded the minimum Wage Order, precluding house allowance. NSSF dues are owed to the statutory body.
Legal principles established
#- Although the award of compensation for unfair termination is discretionary, the court must give reasons and justify the award under section 49 of the Employment Act, especially the maximum award of 12 months
- In assessing compensation for unfair termination under section 45(5) of the Employment Act, the court is required to examine the employee's work records
- Gratuity is not due to an employee unless there is a written contract conferring the benefit
- An employer under section 2 of the Employment Act is one who controls and regulates the employee's conditions of employment; salary payments, remittance of statutory dues and allocation of leave indicate an employer-employee relationship
Court orders
#- 1.A declaration that the employment was terminated unfairly
- 2.The appellant and Huzeifa Glass And Hardware are jointly and severally liable to pay compensation at Ksh.18,750
- 3.Notice pay at Ksh.18,750
- 4.The respondent to be issued a certificate of service
- 5.Each party bears its costs
- On appeal from
- Magistrates' Court (ELRC), Mombasa
- Mombasa CMELRC No. 0034 of 2020
- Jurisdiction invoked
- First appeal from the magistrates' court in an employment dispute under the Employment Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Phoenix Decorz Limited formerly known as Huzeifa Glass and Hardware v Mwambao (Appeal E003 of 2025) [2025] KEELRC 1945 (KLR)", Case Analysis (2025). Mombasa ELRC Appeal arising from CMELRC No. 0034 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1945/eng@2025-06-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.