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ELRCPartially AllowedStatement of Claim dated 9th May 2017 (amended 21st January 2020)· [2025] KEELRC 2600 (KLR)

Ng’asura & 28 others v Karrymart Limited (Cause 903 of 2017) [2025] KEELRC 2600 (KLR)

Employment and Labour Relations Court
25 September 2025
2,286 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 ruled that firing workers who attended a labour office meeting, after months of unpaid wages, was illegal and awarded them over Kshs 5 million.

What this practically means

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Executive summary

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Twenty-nine Claimants employed by the Respondent between 2014 and 2016 sued for breach of contract and unlawful summary dismissal. In August 2016 the Respondent arbitrarily reduced their salaries by issuing new appointment letters, and from December 2016 to March 2017 failed to pay salaries for four months. The Claimants reported the dispute to the labour office and, while attending a conciliation meeting convened by the labour officer on 24 March 2017, a director of the Respondent arrived with letters of summary dismissal on the ground of participation in an alleged illegal strike. A judgment on admission for Kshs. 3,041,002.00 had earlier been entered on the Respondent's own computation; only disputed heads proceeded to trial. The Respondent filed no statement of defence or witness statements, and the court refused its application from the bar to call Dr. Kariithi as a defence witness after the Claimants closed their case. CW1, the 6th Claimant, testified for all Claimants. The court held that the four-month salary default was itself a fundamental breach entitling the Claimants to repudiate; that the proper course for the financially distressed Respondent was a lawful redundancy under section 40 of the Employment Act; and that the summary dismissal violated sections 36, 41, 43 and 45 of the Employment Act. Applying Raustus Ayua Odioko v China Wu Yi Ltd, the court found the dismissal lacked substantive fairness. Judgment was entered for the Claimants jointly and severally: the unpaid consent sum of Kshs. 2,553,141.00, notice pay of Kshs. 667,000.00, compensation of three months' salary totalling Kshs. 2,013,000.00, interest at court rates, costs, and certificates of service within 30 days. Claimed six months' compensation and damages for the salary reduction were not granted.

Key legal issues

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01

Whether the summary dismissal was for a valid reason and followed fair procedure

Holding

The summary dismissal was unlawful and unfair; the Claimants had a right to attend the lawfully convened labour office meeting and the Respondent breached sections 36, 41, 43 and 45 of the Employment Act.

Reasoning

The Respondent had not paid salaries for four months, itself a fundamental breach entitling the Claimants to repudiate. The arbitrary salary reduction aggravated the situation. The Claimants were summoned to the labour office by the labour officer and were within their rights to attend. Dismissing them there by letter addressed to the Assistant Labour Commissioner violated the procedural and substantive fairness requirements of the Employment Act.

p. 5
02

What remedies are available over and above the judgment on admission

Holding

Notice pay of Kshs. 667,000.00 and compensation of three months' salary (Kshs. 2,013,000.00) awarded under section 49(1)(c) and 4 of the Employment Act, plus interest, costs and certificates of service.

Reasoning

The court considered the Claimants' about 3 years of service, the four months without salary, their lack of contribution to the dismissal, and the non-payment of dues even after the judgment on admission. Compensation of three months' salary was deemed appropriate under section 49 of the Employment Act.

p. 5
03

Whether the Respondent could call a defence witness without filing a statement of defence or witness statement

Holding

The court refused the application to file a defence and call Dr. Kariithi after the Claimants closed their case and over seven years after the suit was filed.

Reasoning

The suit was undefended; the Respondent had filed no statement of response or witness statements. Permitting a defence witness from the bar after the Claimants' case was closed and after seven years of delay would be unconscionable and prejudicial to the Claimants.

p. 4

Legal principles established

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  • Failure to pay salaries for four months amounts to fundamental breach of the employment contract entitling the employee to repudiate and claim damages and terminal dues
  • Dismissing employees summarily for attending a lawfully convened conciliation meeting at the labour office is unprocedural and violates sections 36, 41, 43 and 45 of the Employment Act
  • An employer facing financial difficulties should follow the redundancy procedure under section 40 of the Employment Act rather than arbitrarily reducing salaries and summarily dismissing employees

Court orders

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  1. 1.Part of the judgment on admission ordered by the court on 24/11/2017 from which the parties reached a consent of Kshs. 2,553,141.00 which has not been paid to date
  2. 2.One month salary in lieu of notice for all the Claimants as particularized in column 7 of Annexe '1' in the sum of Kshs. 667,000.00
  3. 3.Compensation equivalent to three months salary in respect of each Claimant for a total sum of Kshs. 2,013,000.00
  4. 4.Interest at court rates from date of judgment till payment in full
  5. 5.Costs of the suit to the Claimants
  6. 6.Certificate of service to each Claimant within 30 days of the judgment

Authorities

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Legislation

  • Constitution of Kenya 2010Articles 41 and 27
  • Employment Act 2007sections 36, 40, 41, 43, 45, 49(1)(c) and 49(4)
  • Fair Administrative Actions Act

Cases cited (1)

  • Raustus Ayua Odioko versus China Wu Yi Company Ltd
    [2021] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes; Articles 41 and 27 of the Constitution of Kenya 2010 invoked; Employment Act 2007

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, "Ng’asura & 28 others v Karrymart Limited (Cause 903 of 2017) [2025] KEELRC 2600 (KLR)", Case Analysis (2025). Statement of Claim dated 9th May 2017 (amended 21st January 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2600/eng@2025-09-25

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