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ELRCPartially AllowedMemorandum of Appeal dated 11th November 2024 (from MCELRC No. E062 of 2022)

Aegis Construction Limited v Kihenja (Employment and Labour Relations Appeal E035 of 2024) [2025] KEELRC 2375 (KLR)

Employment and Labour Relations Court
13 August 2025
3,247 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled an employee was dismissed, not resigned, and that skipping the hearing requirement makes any dismissal unfair — even when the reason is valid.

What this practically means

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Executive summary

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The Employment and Labour Relations Court at Nyeri (Onesmus N Makau, J) heard a first appeal by the employer against the decision of Hon. Angima SRM in MCELRC No. E062 of 2022, which had awarded the respondent, a former driver, notice pay, four years' leave and public holidays, three months' compensation for unfair termination, certificate of service, costs and interest. The employer contended the respondent had resigned on medical grounds, or alternatively that his contract ended by operation of law after he stayed away for two years without producing a certificate of incapacity under section 30 of the Employment Act. The Court, on a first appeal applying Selle v Associated Motor Boat Company Ltd, re-evaluated the evidence. It framed three issues: whether the respondent resigned or was dismissed; whether any dismissal was fair and lawful; and whether the trial court's awards should stand. The Court found that payment of one month's salary in lieu of notice and the unrebutted testimony about the HR Manager's statement proved dismissal on account of physical incapacity, not resignation. The reason for termination was valid because the respondent failed to comply with section 30, but the dismissal was unfair as the mandatory procedure in section 41 was not followed - no show cause notice, no hearing, and no effort to contact the employee. Applying Butt v Khan, the Court affirmed the compensation, leave and public holiday awards, but set aside the notice pay of Kshs.25,949 already paid to the respondent's wife. The appeal was partially allowed with no costs; awards are subject to statutory deductions.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the respondent resigned or he was dismissed
  2. 2.If the answer to (a) is dismissal, whether it was unfair and unlawful
  3. 3.Whether the award of damages by the trial court should stand

Key legal issues

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01

Resignation versus dismissal

Holding

The respondent never resigned; his services were terminated by the appellant on account of physical incapacity, as evidenced by payment of one month's salary in lieu of notice and the unrebutted testimony of what Mr. Hitesh told him.

Reasoning

The appellant admitted no resignation letter was received. It paid one month's salary in lieu of notice plus 7 days' salary, and a 'PAY OFF' document cited sickness/accident as the reason for exit. When the respondent returned in 2021, the HR Manager said he had been dismissed. That evidence was unrebutted because Mr. Hitesh never testified.

p. 5
02

Validity of the reason for termination under section 45

Holding

The reason for termination (absenteeism without a certificate of incapacity as required by section 30 of the Employment Act) was valid.

Reasoning

Section 30 requires an employee to notify the employer and produce a certificate of incapacity to work. The respondent never complied as at 7th November 2019 when terminal benefits were paid, staying away until 2021. The court therefore agreed with the trial court that the reason was valid.

p. 6
03

Fairness of procedure under section 41 of the Employment Act

Holding

The termination was unfair and unlawful because the mandatory procedure under section 41 was not followed; no show cause notice or hearing was given.

Reasoning

Section 41 requires an employer, before terminating for physical incapacity, to explain the reasons and hear the employee's representations. RW1 admitted no show cause notice was served and no disciplinary hearing conducted. Following Joseph Nzioka v Smart Coating Limited, reasonable attempts must first be made to contact an employee before dismissal for absenteeism.

p. 6
04

Whether the trial court's awards should stand

Holding

The award of 3 months' salary compensation, leave and public holidays was upheld; only the award of one month's salary in lieu of notice (Kshs.25,949) was set aside as it had already been paid.

Reasoning

Applying Butt v Khan, the compensation award was evidence-based and reasonable given the respondent's four years of service and lack of misconduct contribution. However, payment of notice pay through Ann Njeri Kabuthi was proven, so that head was set aside. Leave and public holiday claims were not specifically controverted and were left undisturbed.

p. 6

Legal principles established

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  • Before dismissing an employee for absenteeism or absconding, an employer must attempt to contact the employee and issue a show cause letter, and must accord a hearing under section 41 of the Employment Act.
  • Payment of one month's salary in lieu of notice is sufficient proof that the employer took responsibility for terminating the contract of employment.
  • An appellate court will not disturb an award of damages unless it is so inordinately high or low as to represent an entirely erroneous estimate.

Court orders

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  1. 1.The lower court judgment is varied by setting aside the award of Kshs.25,949 being one-month salary in lieu of notice
  2. 2.The rest of the awards in the lower court's judgment are not disturbed
  3. 3.The award shall be subject to statutory deductions
  4. 4.No costs awarded since the appeal only succeeded partially

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

On appeal from
Magistrates' Court (ELRC), Nyeri
MCELRC No. E062 of 2022
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's employment decision under the Employment and Labour Relations Court Act

Relief refused

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Full allowance of the appeal and dismissal of the suit with costs

The court found the dismissal unfair for want of fair procedure and upheld most of the trial court's awards

p. 7

Costs

Since the appeal only succeeded partially, I will not condemn any party to pay costs (each party to bear their own costs).

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

a. The lower court judgment is varied by setting aside the award of Kshs.25,949 being one-month salary in lieu of notice.
p. 7Final orders - variation of lower court award
b. The rest of the awards in the lower court's judgment are not disturbed.
p. 7Final orders - remaining awards affirmed
d. Since the appeal only succeeded partially, I will not condemn any party to pay costs.
p. 7Costs
Dismissal on account of absconding must be preceded by evidence showing that reasonable attempt was made to contact the employee concerned and that show cause letter was issued to such employee calling upon such employee to show cause why his services should not be terminated on account of absconding duties.
p. 6Procedure for dismissal for absenteeism
I find that the respondent never resigned but his services were terminated by the appellant on account of physical incapacity due to an accident.
p. 5Resignation vs dismissal

Issues in the judgment

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minor

The judgment states the respondent's last working date as 9th September 2019 (date of accident) while also stating termination occurred on 7th/8th November 2019

minor

Inconsistent dates of termination: 7th November 2019 (date of payment) versus 8th November 2019 in the conclusion

minor

Parties' full names are not stated in the judgment; the appellant/respondent are referred to only by role

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, "Aegis Construction Limited v Kihenja (Employment and Labour Relations Appeal E035 of 2024) [2025] KEELRC 2375 (KLR)", Case Analysis (2025). Memorandum of Appeal dated 11th November 2024 (from MCELRC No. E062 of 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2375/eng@2025-08-13

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