Medalion Steakhouse Limited v Francis Musyoka Samuel
The bottom line
#A Kenyan court confirmed that employees are owed leave, overtime and house allowance dues even when their dismissal was fair or they resigned.
What this practically means
#Executive summary
#Key legal issues
#Whether terminal dues can be awarded where the claim for unfair termination is dismissed
Yes; leave, house allowance, public holidays and overtime are statutory dues awardable irrespective of how employment ended.
The court held that dues awardable to an employee do not depend on the fairness of termination. Even where separation is cordial or by resignation, statutory dues remain payable. The trial court was therefore correct to dismiss the unfair termination claim yet award terminal dues.
Whether the trial court's capping of awards at three years under section 90 of the Employment Act was correct
No; the capping was a wrong interpretation. Claims filed within 12 months of cessation are not limited to three years.
Section 90 requires continuing-injury claims to be filed within 12 months of cessation of employment. The Respondent resigned in June 2023 and filed in December 2023, within time. The claims could therefore cover the full 4 years 9 months of employment, following the German School Society decision on continuing wrongs.
Burden of proof on leave, house allowance, overtime and public holidays
The employer bore the burden to produce records and a written contract; failing that, the employee's allegations stood uncontroverted.
Sections 9, 10(6) and (7), 31 and 74 of the Employment Act obliged the employer to keep and produce records and to issue a written contract showing consolidated salary. The Appellant produced no attendance registers, muster roll or written contract, so the trial court's findings on unpaid leave, house allowance, overtime and public holidays were upheld.
Legal principles established
#- Terminal dues such as leave, house allowance, public holidays and overtime are statutory dues payable to an employee irrespective of whether the termination was fair or unfair, or whether the employee resigned.
- Under section 90 of the Employment Act, a claim based on continuing injuries must be filed within 12 months of cessation of employment, and if so filed, is not limited to the three years preceding dismissal.
- Where an employer fails to reduce the contract into writing and fails to produce employment records under sections 9, 10(6) and (7) and 74 of the Employment Act, allegations of unpaid leave, unconsolidated salary and overtime stand uncontroverted.
Court orders
#- 1.Appeal dismissed with costs to the Respondent
- 2.Awards capped at three years by the trial court varied to the period worked of 4 years and 9 months
- 3.Leave pay Kshs 511,909.06/=
- 4.Overtime pay Kshs 1,024,069/=
- 5.House allowance Kshs 234,070.52/=
- 6.Public Holidays worked Kshs 145,293.30/=
- 7.Total award Kshs 1,915,341.88/=
- On appeal from
- Magistrates' Court (Milimani, ELRC)
- Milimani MCELRC No. E2203 of 2023
- Jurisdiction invoked
- First appellate jurisdiction over the subordinate court's judgment (Employment and Labour Relations Court Appeals Division)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Medalion Steakhouse Limited v Francis Musyoka Samuel", Case Analysis (2026). Appeal No. E189 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2506/eng@2026-09-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.