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ELRCPartially AllowedAppeal Number E006 of 2026· [2026] KEELRC 2479 (KLR)

Swan Carriers Limited v Fredrick Ochieng Onyango

Employment & Labour Relations Court of Kenya
18 September 2026
7,388 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~30 min to read original · ~4 min brief

The bottom line

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A Kenyan court cut a sacked turnboy's award but confirmed employers must formally terminate employment, even when a worker allegedly absconds.

What this practically means

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Executive summary

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The Employment and Labour Relations Court at Machakos (Jemimah Keli J) heard the appellant's appeal against the judgment of Hon. M. A. Nanzushi (SPM) in Mavoko MCELRC Cause No. E512 of 2023, which had partially allowed the respondent turnboy's claim, awarding Kshs. 217,800/- comprising one month's pay in lieu of notice, three months' compensation for unfair termination, unpaid salaries, costs and interest. The respondent had been arrested in July 2018 over a criminal case arising from his employment, was later acquitted, and claimed he was denied access to work while the appellant withheld his salary; the appellant asserted he absconded from 30th July 2018. On appeal, the court adopted the parties' agreed issues. It held that combining a tort claim with an employment claim was a procedural technicality that could not oust jurisdiction. On limitation, it held the claim was not time-barred because the employer failed to terminate the employment after asserting abscondment, leaving the cause of action open-ended. However, the court found the respondent did not prove on a balance of probabilities that he returned to work or rendered services after arrest; the appellant's letter to the Labour Officer reporting abscondment was unrebuted, and wages under Section 17(1) of the Employment Act are payable only for work done. The award of Kshs. 169,400/- salary arrears was set aside. The court upheld the finding of constructive dismissal despite it not being pleaded, holding it flowed logically from undisputed facts, and affirmed notice pay and three months' compensation under Sections 49 and 50, recalculated on gross salary of Kshs. 12,075/-. The appeal was allowed partially; the trial judgment was substituted with awards of Kshs. 12,075/- notice pay and Kshs. 36,225/- compensation, with costs and interest. Each party was ordered to bear its own costs of the appeal, and a 30-day stay was granted.

Key legal issues

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01

Jurisdiction after striking out of the tort claim

Holding

Combining a tort claim with an employment claim is a procedural technicality; the trial court properly determined the employment claim on its merits

Reasoning

The court invoked Section 20 of the Employment and Labour Relations Court Act directing courts not to determine cases on procedural technicalities. The omnibus pleading combining malicious prosecution and employment claims was treated as a technicality that could not defeat substantive justice, so the trial magistrate's assumption of jurisdiction over the employment claim was upheld.

p. 8
02

Limitation under Section 89 of the Employment Act

Holding

The claim was not time-barred because the employer failed to terminate the employment after asserting abscondment, leaving the cause of action open-ended

Reasoning

Although the arrest occurred in July 2018 and the suit was filed in June 2023, the court held that the claim for salary arose from the date of arrest and that the employer's failure to terminate the employment under Section 41 left the cause of action open-ended. It is the employer's duty to bring the employment relationship to an end, so the limitation period did not bar the claim.

p. 13
03

Burden of proof on salary arrears

Holding

The respondent failed to prove on a balance of probabilities that he returned to work or rendered services after arrest; the salary award was set aside

Reasoning

The appellant's documentary evidence (letter to the Labour Officer reporting abscondment from 30th July 2018) was unrebuted. The respondent gave no name of the guard who allegedly turned him away, no date of return, and no corroborating evidence. Under Section 17(1) of the Employment Act wages are payable only for work done, so the award of Kshs. 169,400/- as salary arrears could not stand.

p. 22
04

Unpleaded constructive dismissal and remedies

Holding

The trial court did not err in finding constructive dismissal and awarding notice pay and 3 months' compensation despite no specific prayer, as the facts disclosed unfair termination

Reasoning

Employment, lack of termination and stoppage of salary were undisputed; the employer knew of the arrest but never afforded the respondent an opportunity to explain his absence under Section 41. The finding of constructive dismissal flowed logically from the facts and was not a new cause of action. Upon finding unfair termination, the court was bound to consider remedies under Sections 49 and 50 of the Employment Act.

p. 24
05

Computation of awards on gross salary

Holding

Notice pay and compensation recalculated on gross salary of Kshs. 12,075/- as required by Section 49

Reasoning

The respondent pleaded net salary, but Section 49 of the Employment Act bases the equivalent of months' wages on gross monthly wage or salary at the time of dismissal. The payslip (PEXB 4) showed gross salary of Kshs. 12,075/-. The court therefore interfered with the awards of notice pay and compensation to reflect gross salary, yielding Kshs. 12,075/- and Kshs. 36,225/- respectively.

p. 27

Legal principles established

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  • Wages are payable only in respect of work done; an employee who renders no services earns no wages
  • It is the employer's duty to bring an employment relationship to an end; failure to terminate upon asserting abscondment leaves the cause of action open-ended and defeats a limitation defence
  • Even where an employee absconds, the employer must terminate fairly and lawfully in compliance with Section 41 of the Employment Act
  • A finding of constructive dismissal may flow logically from unpleaded facts and is not a new cause of action where employment, lack of termination and salary stoppage are undisputed
  • Once a court finds termination wrongful or unfair, the only question is the appropriate remedy under Section 49 of the Employment Act
  • Compensation and notice pay under Section 49 are computed on gross salary, not net salary

Court orders

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  1. 1.Appeal allowed partially; the award of unpaid salary is set aside
  2. 2.Judgment and Decree of the Hon. M. A. Nanzushi (SPM) delivered on 10th December 2025 in Mavoko MCELRC Cause No. E512 of 2023 set aside and substituted with judgment for the claimant against the 1st defendant: notice pay of 1 month's salary Kshs. 12,075/-; 3 months compensation for unlawful termination Kshs. 36,225/-; costs and interest
  3. 3.Each party to bear own costs of the appeal
  4. 4.Stay of 30 days granted on application of the appellant
On appeal from
Chief Magistrates Court (Mavoko MCELRC)
Mavoko MCELRC Cause No. E512 of 2023
Jurisdiction invoked
First appellate jurisdiction over the subordinate court under the Employment and Labour Relations Court Act (guidance provision at Section 20 invoked); appeal from Mavoko MCELRC Cause No. E512 of 2023

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, "Swan Carriers Limited v Fredrick Ochieng Onyango", Case Analysis (2026). Appeal Number E006 of 2026. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2479/eng@2026-09-18

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