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ELRCPartially AllowedCase Tracking System appeal filed 12th April 2025 (judgment amended following order of 19th June 2025 setting aside judgment of 23rd May 2025)· [2025] KEELRC 2340 (KLR)

Singh v Ambani (Employment and Labour Relations Appeal E017 of 2023) [2025] KEELRC 2340 (KLR)

High Court of Kenya (first appellate court)
30 July 2025
3,711 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's High Court upheld an unfair termination award for a domestic worker but cut the service pay, since money already paid had to be deducted.

What this practically means

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Executive summary

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This is an amended judgment of the High Court at Nairobi (J.W. Keli, J) sitting as a first appellate court, replacing a judgment of 23rd May 2025 that was set aside on 19th June 2025 because the court had erroneously overlooked the existence of a cross-appeal. The appeal challenged the decision of B.M. Cheloti [SRM] of 17th February 2023 in MCELRC No. E1040 of 2021, which awarded a domestic worker Kshs. 392,000 as 12 months' salary for unfair termination and service pay for 16 years. The worker had served from 2004 to 2020; after a robbery incident he was arrested, held for three days, released without charge, and never recalled to work. Terminal dues of Kshs. 102,243 were later paid through a labour officer under a certificate of final payment. The court applied Selle v Associated Motor Boat Co. and Mbogo v Shah, re-evaluated the evidence, and upheld the finding of unfair termination, holding that the appellant's admission at cross-examination that he never expressly asked the claimant to return made the certificate of final payment a bar to the reasons for termination being judicially tested. The 12 months' compensation of Kshs. 168,000 was affirmed under section 49 of the Employment Act per Ken Freight v Nguti. However, the court varied the service pay award: applying 15 days per year served and discounting Kshs. 54,810 already paid, it substituted Kshs. 57,190, making a total award of Kshs. 225,190 with interest. The cross-appeal seeking underpayment, overtime, accrued leave and salary in lieu of notice was dismissed, those claims having been uncontroverted or already paid. Costs of the suit went to the claimant and costs of the appeal to the appellant; no costs on the cross-appeal.

Key legal issues

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01

Whether the claimant's employment was unfairly terminated

Holding

Termination was unlawful; the appellant never recalled the claimant to work after his release from police custody

Reasoning

The claimant was arrested after a robbery incident, released without charge after three days in custody, and was never expressly asked to return to work. The appellant admitted at cross-examination that he did not expressly ask the claimant to resume duties. The certificate of final payment did not extinguish the claimant's entitlement to have the reasons for termination judicially considered.

p. 6
02

Whether the 12 months' compensation award was justified

Holding

Yes; the award of 12 months' salary (Kshs. 168,000) was left undisturbed

Reasoning

Relying on Ken Freight (E.A) Limited v Benson K. Nguti, once wrongful termination is found the court applies section 49 of the Employment Act. The claimant served 16 years, was not recalled to work, and had no other benefits. The labour officer had not considered the reasons for termination, so the claimant was entitled to his day in court on that issue despite the agreement.

p. 6
03

Entitlement to service pay

Holding

Service pay reduced: Kshs. 112,000 less Kshs. 54,810 already paid, leaving Kshs. 57,190

Reasoning

The claimant was not a member of NSSF or any other scheme, so section 35 of the Employment Act applied. The trial court ought to have discounted the Kshs. 54,810 already paid as service pay, and the statutory rate is 15 days for every year worked. The court interfered with the trial court's award to that extent.

p. 7
04

Cross-appeal: underpayment, overtime, accrued leave and salary in lieu of notice

Holding

Cross-appeal dismissed; trial court's dismissal of those claims upheld

Reasoning

The claimant was employed as a general worker, not a cook, and did not controvert the respondent's evidence. The overtime claim was inconsistent with admitted periods of leave. Accrued leave (Kshs. 51,567) and notice pay (Kshs. 14,000) were included in the terminal dues computation and were not challenged or denied.

p. 8

Legal principles established

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  • A first appellate court must reconsider and evaluate the evidence and draw its own conclusions, while making allowance for not having seen or heard the witnesses
  • An appellate court will not interfere with the exercise of discretion by an inferior court unless the decision is clearly wrong
  • Once a termination is found wrongful or unfair, the court must consider and apply the remedies under section 49 of the Employment Act
  • Service pay is payable at 15 days' salary for every year served, and amounts already paid as service pay must be discounted

Court orders

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  1. 1.The appeal is allowed on the amount of awarded service pay only
  2. 2.The cross-appeal is dismissed
  3. 3.The Judgment and Orders of the Honourable B.M. Cheloti [SRM] delivered on 17th February 2023 in MCELRC No. E1040 of 2021 are set aside and substituted
  4. 4.Judgment entered for the claimant against the respondent: the termination is held to have been unlawful
  5. 5.12 months salary for unfair termination at Kshs 168,000
  6. 6.Balance service pay of Kshs. 57,190/-
  7. 7.Total sum awarded of Kshs. 225,190 with interest at the court rate from the judgment date until payment in full
  8. 8.Certificate of service to issue under section 51 of the Employment Act
  9. 9.Costs of the suit to the claimant
  10. 10.Costs in the appeal are awarded to the appellant; no costs awarded with respect to the cross-appeal

Authorities

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Legislation

  • Employment Actsection 49
  • Employment Actsection 35
  • Employment Actsection 51
  • Regulation of Wages [General] OrderLegal Notice Number 112 of 2017

Cases cited (3)

  • Selle v Associated Motor Boat Co.
    [1968] EA 123
  • Mbogo V Shah
    [1968] EA Page 93
  • Ken freight [E.A] Limited v Benson K. Nguti
    SC Pet. No. 37 of 2018 [2019] eKLR
On appeal from
Chief Magistrates Court at Nairobi
MCELRC No. E1040 of 2021
Jurisdiction invoked
First appellate jurisdiction over the Chief Magistrates Court (Employment and Labour Relations cause); appeal decided by way of rehearing per Selle v Associated Motor Boat Co.

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, "Singh v Ambani (Employment and Labour Relations Appeal E017 of 2023) [2025] KEELRC 2340 (KLR)", Case Analysis (2025). Case Tracking System appeal filed 12th April 2025 (judgment amended following order of 19th June 2025 setting aside judgment of 23rd May 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2340/eng@2025-07-30

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