Chemutai v Lipa Later Limited (Employment and Labour Relations Petition E007 of 2024) [2025] KEELRC 2102 (KLR)
The bottom line
#A Kenyan court awarded over Kshs 5 million to an employee whose employer's failure to pay her salary amounted to unfair constructive dismissal.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Respondent's failure to pay the Petitioner's salary and unilateral reduction of her salary violated her constitutional rights under Articles 27, 28, 41 and 47
- 2.Whether the Petitioner was constructively dismissed/unfairly terminated
- 3.What remedies the Petitioner is entitled to
Key legal issues
#Constructive dismissal through non-payment of salary
Uncontroverted evidence that the Petitioner worked without being paid as expected established a repudiatory breach amounting to constructive termination
The petition proceeded undefended after the Respondent failed to enter appearance. The Petitioner established employment and demonstrated that her salary was never paid as expected, leading to her resignation. The court found the conditions the Respondent subjected her to caused the resignation, constituting constructive termination deserving compensation.
Violation of Article 41 fair labour practices
Failure to pay salary when due breached the Petitioner's labour rights under Article 41
Article 41 guarantees every person fair labour practices and every worker fair remuneration and reasonable working conditions. With the Respondent not paying salary when due, the court found a breach of these rights, entitling the Petitioner to compensation including constitutional damages.
Legal principles established
#- It is a breach of labour rights for an employee to work and not be paid
- An employer who fails to pay salary when due breaches the employee's constitutional labour rights and constructively terminates the employee, attracting compensation
Court orders
#- 1.Unpaid salaries as pledged of Kshs 749,105/-
- 2.Underpayment of salaries as pleaded of Kshs 200,000/-
- 3.Compensation equivalent to 8 months' salary for the unfair constructive termination being Kshs 2,800,000/-
- 4.One month's salary in lieu of notice of Kshs 350,000/-
- 5.Damages for breach of constitutional rights of Kshs 1,000,000
- 6.Total award of Kshs 5,099,105/-
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Articles 27, 28, 41 and 47 of the Constitution; Employment Act, 2007 (fair labour practices/unfair termination jurisdiction of the ELRC)
Relief refused
#Compensation of 12 months' gross salary (Kshs 2,988,420) as sought for constructive dismissal
Court awarded 8 months' salary instead of the 12 months claimed
Severance pay of Kshs 175,000
Not included in the final award despite being sought
Certificate of Service under Section 51 of the Employment Act
Not included in the final orders despite being sought
Exemplary and general damages beyond the Kshs 1 million constitutional damages awarded
Court awarded a fixed Kshs 1 million for breach of constitutional rights
Interest and costs as sought
No order on interest or costs appears in the final orders
Costs
No costs order made in the final orders
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
In this respect it is indeed a breah of labour rights for an employee to work and not be paid.
The respondents having not paid the petitioner her salary when due, it is my finding that they breached her rights and constructively terminated her and she is therefore entitled to compensation.
Compensation equivalent to 8 months’ salary for the unfair constructive termination based on continuing injury at work = 8x350,000=2,800,000/-.
Damages for breach of her constitutional rights being 1 million.
Unpaid salaries as pledged being kshs 749,105/-.
Issues in the judgment
#Judgment contains typographical errors in the delivered text
Reliefs for severance pay, certificate of service, interest and costs were sought but not addressed in the final orders
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Chemutai v Lipa Later Limited (Employment and Labour Relations Petition E007 of 2024) [2025] KEELRC 2102 (KLR)", Case Analysis (2025). Petition dated 8th January 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2102/eng@2025-07-16
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.