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ELRCPartially AllowedELRC Appeal from Makueni Employment and Labour Relations Cause No. 6 of 2022· [2025] KEELRC 2488 (KLR)

Board of Management Yinthungu Mixed Day & Boarding Secondary School v Mutie (Employment and Labour Relations Appeal E008 of 2024) [2025] KEELRC 2488 (KLR)

Employment and Labour Relations Court of Kenya
19 September 2025
5,054 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 cut a former accounts clerk's award from Kshs. 544,047 to Kshs. 96,000, but confirmed that advertising her job while she was still employed was unfair dismissal.

What this practically means

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Executive summary

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The appellant, an employer (school), appealed against the judgment and decree of 14th February 2024 by Hon. P. N. Gesora, Chief Magistrate, in Makueni ELRC Cause No. 6 of 2022, which found the respondent's (Accounts Clerk's) termination unlawful and awarded her terminal dues of Kshs. 544,047, costs, a certificate of service and a letter of recommendation. The appeal was canvassed by written submissions. As a first appellate court, it re-evaluated the evidence guided by Selle v Associated Motor Boat Co. and Mbogo v Shah. The court framed two issues: the lawfulness of the termination and entitlement to the reliefs awarded. On the first issue, the court found the termination substantively and procedurally unfair: the respondent's position was advertised and filled while she was still in service, amounting to constructive dismissal; no disciplinary proceedings were held; and the show-cause letter of 29th May 2017 allowed 14 days but the position was terminated within about 5 days, contrary to section 41 of the Employment Act. On reliefs, the court upheld the unpaid August salary (Kshs. 8,000) and notice pay (Kshs. 8,000), but reduced compensation for unfair termination from the maximum to 10 months' salary (Kshs. 80,000) for failure by the trial court to apply section 49(4) criteria, and set aside the awards of severance/service pay (NSSF membership), annual leave (school holiday leave), and underpayment (accounts clerk not in the Minimum Wages Order). The appeal was partially successful: the trial judgment was set aside and substituted with an award of Kshs. 96,000 plus costs and interest at court rate from the date of judgment; each party to bear own costs in the appeal; stay of 30 days granted. Signed and delivered at Machakos on 19th September 2025 by J.W. Keli, Judge.

Key legal issues

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01

Whether the termination of the respondent's employment was substantively and procedurally fair

Holding

The termination was unfair. The reason for terminating the accounts clerk position was not justified, the advertising of her position while in service amounted to constructive dismissal, and the process under section 41 of the Employment Act was not complied with.

Reasoning

The court re-evaluated the evidence under Selle v Associated Motor Boat Co. The show-cause letter of 29th May 2017 gave 14 days but termination of the position followed within 5 days, showing an arbitrary position by the Board. No disciplinary proceedings were held on the alleged insubordination before the termination or demotion. The academic papers issue only arose at interviews.

p. 7
02

Whether the reliefs awarded by the trial court were appropriate

Holding

Some reliefs upheld (unpaid salary, notice pay), but compensation reduced to 10 months' salary, and severance pay, annual leave and underpayment awards set aside.

Reasoning

The trial court granted the maximum award without applying the section 49(4) criteria; the claimant had served slightly above 4 years and did not contribute to the termination. Severance pay applies only on redundancy. Service pay is excluded for NSSF members. School employees who take leave during school holidays cannot claim additional leave pay. Underpayment failed because the accounts clerk position is not in the Minimum Wages Order.

p. 8
03

Whether the respondent proved unpaid salary for August 2018

Holding

Upheld at Kshs. 8,000. Once the respondent discharged her burden, the employer as custodian of employment records had to prove payment, which it failed to do.

Reasoning

The burden shifted to the employer to produce evidence that it had paid the salary claimed; no such evidence was tendered, so the trial court's award was upheld.

p. 9

Legal principles established

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  • An employer must prove both substantive fairness (valid and fair reason) and procedural fairness (hearing under section 41) for a termination to be fair under section 45(2) of the Employment Act
  • Advertising an employee's position and recruiting another while the employee is still in service amounts to constructive dismissal
  • An employee who is a member of NSSF is not entitled to service pay under section 35(5) and (6) of the Employment Act
  • A court cannot condemn an employer for paying a wage for a position not regulated under the minimum wage orders

Court orders

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  1. 1.Judgment and decree of 14th February 2024 set aside and substituted
  2. 2.Termination held unlawful and unfair
  3. 3.Salary for August 2018 awarded at Kshs. 8,000
  4. 4.Notice pay awarded at Kshs. 8,000
  5. 5.Compensation for unfair termination equivalent of 10 months' salary, Kshs. 80,000
  6. 6.Total sum awarded Kshs. 96,000 plus costs with interest at court rate from date of judgment
  7. 7.Each party to bear own costs in the appeal
  8. 8.Stay of 30 days granted
On appeal from
Chief Magistrate's Court at Makueni (Employment and Labour Relations)
ELRC Cause No. 6 of 2022
Jurisdiction invoked
First appellate jurisdiction over the Chief Magistrate's Court at Makueni Employment and Labour Relations Cause No. 6 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, "Board of Management Yinthungu Mixed Day & Boarding Secondary School v Mutie (Employment and Labour Relations Appeal E008 of 2024) [2025] KEELRC 2488 (KLR)", Case Analysis (2025). ELRC Appeal from Makueni Employment and Labour Relations Cause No. 6 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2488/eng@2025-09-19

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