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ELRCPartially AllowedCause No E704 of 2021· [2025] KEELRC 2856 (KLR)

Meriko v Jubilee Insurance Company Kenya Limited (Cause E704 of 2021) [2025] KEELRC 2856 (KLR)

Employment and Labour Relations Court of Kenya
23 October 2025
4,790 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court awarded an executive 12 months' salary after her employer heaped extra roles on her without consultation, consent or extra pay.

What this practically means

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Executive summary

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The Claimant, employed on 16th August 2018 as General Manager, Life at a monthly salary of Kshs. 1,300,000, resigned on 22nd July 2019 and sued the Respondent claiming constructive dismissal, discrimination and a raft of monetary reliefs arising from her assignment of additional duties over the Pension, Annuity and Regional Head of Life portfolios without consultation, consent or extra pay. The Respondent countered that the expanded duties fell within her contract, which allowed assignment across group entities during a planned restructuring, that her resignation was voluntary, and that terminal dues had been settled in Court-Annexed Mediation. The court framed three issues: constructive dismissal, discrimination, and entitlement to reliefs. It held that the Respondent varied her contract immediately upon employment - multiple acting roles and an expanded designation evidenced by emails and a hand-over report - without commensurate compensation or formalization contrary to section 10(5) of the Employment Act, and that the totality of the Respondent's conduct, including the unaddressed harassment complaints, showed it no longer intended to be bound by the contract, entitling the Claimant to treat herself as constructively dismissed. The discrimination claim failed, the court not being convinced gender motivated the non-compensation. On remedies, maximum compensation of 12 months' salary (Kshs. 15,600,000) was awarded under section 49, plus Kshs. 20,000 approved telephone allowance, with interest; extra-assignment compensation was subsumed in the dismissal award, disparity pay failed for want of evidence, and terminal dues were excluded as settled in mediation. The Respondent was ordered to bear the costs of the suit. Judgment delivered by C. N. Baari, Judge, on 23rd October 2025 in Nairobi.

Key legal issues

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01

Whether the Claimant was constructively dismissed

Holding

Yes - the Respondent varied her contract without consultation or compensation, demonstrating it no longer intended to be bound by it

Reasoning

The court found the Claimant's role expanded almost immediately from General Manager Life to General Manager Life and Pension, with acting responsibility for two other positions including one held by her supervisor, without any additional remuneration or formalization. The Respondent ignored her requests for salary review and did not act on her harassment complaints. Relying on section 10(5) of the Employment Act and constructive dismissal doctrine from Western Excavating and Coca Cola v Ligaga, the totality showed repudiatory conduct entitling her to treat herself as dismissed.

p. 9
02

Whether the Claimant was discriminated against

Holding

No - discrimination on account of gender or at all was not proved

Reasoning

While accepting that her responsibilities grew significantly and she was uncompensated, the court was not persuaded that the failure to compensate her expanded role was due to her gender. No evidence of differential treatment of similarly placed male colleagues with objective justification was established.

p. 9
03

Whether the Claimant is entitled to the remedies sought

Holding

Partially - maximum 12 months' compensation for constructive dismissal and the approved telephone allowance; other heads refused

Reasoning

Applying section 49 of the Employment Act and the 13 factors in section 49(4), the court considered her 11-month tenure, the expansion of her duties and her reasonable expectation of continued employment, concluding she proved a case for maximum compensation. Terminal dues claims were excluded as settled in mediation; extra-assignment compensation was subsumed in the dismissal award; disparity pay failed for want of evidence; the telephone allowance succeeded as it had been approved.

p. 10

Legal principles established

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  • Where an employer assigns an employee duties significantly different from their contract without consultation, consent or compensation, that may amount to a fundamental breach entitling the employee to claim constructive dismissal
  • Where a matter stipulated in an employment contract changes, the employer must in consultation with the employee revise the contract and notify the change in writing
  • An award of the maximum 12 months' compensation must be based on sound judicial principles and justified by the court

Court orders

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  1. 1.A declaration that the Claimant was constructively dismissed
  2. 2.An order that the Respondent pays the Claimant 12 months' salary as compensation for the constructive dismissal at Kshs. 15,600,000/-
  3. 3.Reimbursement of the telephone allowance from the date of approval [April-July] at Kshs. 20,000/-
  4. 4.The Respondent shall bear the costs of the suit
  5. 5.Interest shall accrue on the compensation and telephone allowance from the date of judgment until payment in full

Authorities

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Legislation

  • Employment ActSection 10(5)
  • Employment ActSection 45
  • Employment ActSection 49 and Section 49(4)
  • Employment ActSection 5
  • Constitution of KenyaArticle 27(4)

Cases cited (8)

  • Elizabeth Kwamboka Khaemba v Cardinal Otunga High School Mosocho & 2 Others
    [2014] eKLR
  • Green v AIG Life Insurance Co. of Canada
    [2000]
  • Western Excavating [ECC] Ltd v Sharp
    [1978] ICR 222 / [1978] 2 WLR 344
  • Coca Cola East & Central Africa Ltd v Maria Kagai Ligaga
    [2015] eKLR
  • Catherine M. Njoroge v Purple Star Kenya Limited
    [2017] eKLR
  • Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 others
    [2014] eKLR
  • Alphonce Maghanga Mwachanya v Operation 680 Limited
    [2013] eKLR
  • Kenya Broadcasting Corporation v Geofirey Wakio
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment 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, "Meriko v Jubilee Insurance Company Kenya Limited (Cause E704 of 2021) [2025] KEELRC 2856 (KLR)", Case Analysis (2025). Cause No E704 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2856/eng@2025-10-23

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