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ELRCPartially AllowedNot stated in the judgment as provided

Kandiyal v Sameer Agricultural & Livestock (Kenya) (Cause 14 of 2020) [2025] KEELRC 2625 (KLR)

Employment and Labour Relations Court
26 September 2025
2,531 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that paying salary in lieu of notice does not replace a fair disciplinary hearing, but a signed full-and-final settlement agreement still blocks most claims.

What this practically means

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Executive summary

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The Claimant, employed as a territory development manager from 12th August 2012 (with an interruption; re-hired on 17th July 2017), sued claiming unfair and constructive dismissal following termination on 7th December 2018. He sought twelve months' salary as damages, notice pay, unpaid leave, unremitted taxes, compensation, a certificate of service and costs, alleging unfair labour practices including absence of a job description, unrealistic targets, forced overtime, verbal abuse and the absence of a disciplinary hearing. The Respondent asserted that the claimant resigned in 2014, was re-hired, that termination followed the contract and the Employment Act, and that the claimant executed a release and waiver on 6th April 2019 and received USD 7,470.24 as full and final settlement. The court framed four issues: whether the termination was unfair; whether the hostile work environment and overwork were proved; whether the release was binding; and whether the reliefs were merited. It held the termination procedurally unfair because no disciplinary hearing was conducted and reliance on payment in lieu of notice did not exempt the employer from Section 41 fair-procedure requirements. However, the allegations of a hostile work environment and forced overtime failed for want of evidence, and the full and final settlement agreement was held binding since no duress or fraud was pleaded or proved. The court awarded two months' salary (USD 5,500) as compensation for unfair termination and ordered issuance of a certificate of service if not already provided. All other claims were dismissed.

Questions the Court framed

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

  1. 1.Was there an unfair termination?
  2. 2.Did the claimant prove the hostile work environment or overwork?
  3. 3.Was the waiver/release agreement binding?
  4. 4.Are the reliefs merited?

Key legal issues

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01

Whether the termination was procedurally fair

Holding

Termination was procedurally unfair as the claimant was not subjected to a disciplinary hearing

Reasoning

The court found no disciplinary hearing was conducted and no performance appraisal records justified the dismissal. Reliance on payment in lieu of notice under Section 36 did not exempt the employer from Section 41 fair-procedure requirements. The respondent's witness admitted no hearing or notices preceded the termination.

p. 6
02

Whether the claimant proved a hostile work environment or forced overtime

Holding

Not proved; claims dismissed

Reasoning

Despite the seriousness of the allegations, the claimant produced no independent evidence, witness, email, complaint or report. The court also reasoned that an employee who re-joined the employer after his initial contract could not have done so if the employer was hostile.

p. 6
03

Whether the waiver/release agreement was binding

Holding

Yes, binding

Reasoning

The claimant signed a full and final settlement agreement, received USD 7,470.24, and did not plead coercion in his pleadings or raise it at the time. Duress or fraud was not proved, so the agreement stands and bars further claims.

p. 6
04

What relief is merited

Holding

Two months' salary as compensation plus a certificate of service

Reasoning

Given the procedural unfairness but the subsisting separation agreement, the court assessed compensation at two months' salary (USD 5,500, being 2,750 x 2), reflecting that the claimant had worked 18 months of a two-year contract. A certificate of service was ordered if not already issued.

p. 6

Legal principles established

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  • Payment in lieu of notice does not exempt an employer from complying with fair procedure under Section 41 of the Employment Act
  • Full and final settlement agreements are binding unless duress or fraud is proved

Court orders

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  1. 1.Award of two months' salary as compensation for unfair termination, USD 5,500 (2750 x 2)
  2. 2.The respondent shall provide the claimant with a certificate of service if not already provided

The bench

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

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

Relief refused

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Damages equivalent to twelve months' gross salary (43,800 USD) for unfair and constructive dismissal

Claimant had worked 18 months of a two-year contract; two months' salary awarded instead; other claims unproved

p. 6

Claims of hostile work environment, unfair labour practices and forced overtime

No independent evidence or witness; no email, complaints or reports filed

p. 6

Taxes deducted and not remitted (9,000 USD), unpaid leave, notice pay and other dues

Claimant signed a full and final settlement agreement and received USD 7,470.24; no duress or fraud proved

p. 6

Costs

Not expressly stated in the judgment as provided; no costs order recorded

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.

The employer simply relied on Section 36 (termination with pay in lieu of notice), but this did not exempt them from complying with fair procedure under Section 41 of the Employment Act.
p. 6Fair procedure not waived by payment in lieu of notice
Courts have upheld as binding, such agreements unless duress or fraud is proved, which was not done in the present case.
p. 6Binding effect of full and final settlement agreements
The respondent shall further provide the claimant with a certificate of service if not already provided.
p. 6Final orders - certificate of service
In this regard an award of two months’ salary as compensation for unfair termination would be adequate in the circumstances. That is to say USD 5,500/- (2750 x 2).
p. 6Final orders - compensation award

Issues in the judgment

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minor

Gender inconsistency in pleadings - the claimant is described as both female and male

minor

Salary figure inconsistency - claimant testified to USD 3,750 while RW1 stated USD 2,750, and the court awarded based on 2,750

minor

Case number and costs disposition not stated in the judgment; signature block describes the judge as 'Presiding Judge-Appeals Division' although this is a first-instance claim

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, "Kandiyal v Sameer Agricultural & Livestock (Kenya) (Cause 14 of 2020) [2025] KEELRC 2625 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2625/eng@2025-09-26

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