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ELRCDismissedELRC Appeal No. E182 of 2025· [2026] KEELRC 2734 (KLR)

Hydery (P) Limited v Enock Bosire Ondieki

Employment and Labour Relations Court
30 September 2026
4,806 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~19 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Employment and Labour Relations Court at Mombasa (Ocharo Kebira, J) dismissed Hydery (P) Limited's appeal against a Chief Magistrate's Court judgment awarding Enock Bosire Ondieki Kshs. 289,400 for unfair termination. The Respondent claimed he was employed as a loader at the Appellant's Shimanzi go-down from August 2020 until 20th April 2023, when he was told not to report after failing to renew a medical certificate the Appellant itself declined to facilitate. The Appellant denied employing him, asserting a triangular arrangement through an 'external supervisor' and a gang leader. The Court identified a single threshold question: whether an employment relationship existed. Applying the control, integration, economic-reality and mutuality tests, it found the work was the core of the Appellant's warehousing business, performed on its premises with its tools, recorded on its attendance registers and wages vouchers, and governed by its medical-certificate requirement. No outsourcing agreement was produced, RW2 was unregistered and kept no records, and the gang leader was not called. The Court distinguished Rapid Kate Services and Thome, and followed its own Naushad decisions on the gang system, Cable & Wireless v Muscat and Vincent Owino Oduor. It held the engagement converted under section 37 after some two years and eight months of continuous work, that the termination was unfair both substantively and procedurally, and that each award was justified. The trial judgment was upheld in its entirety, with costs of the appeal to the Respondent.

Key legal issues

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01

Whether the Respondent was the Appellant's employee despite the alleged triangular gang-leader arrangement

Holding

The Respondent was at all material times the Appellant's employee; the alleged outsourcing was unsupported by any document and contradicted by the Appellant's own records.

Reasoning

Applying the control, integration, economic-reality and mutuality tests, the work was the core of the Appellant's business, done on its premises and goods; workers signed its attendance register, were paid from its money, used its tools, and held medical certificates in its name. No outsourcing agreement was produced, RW2 was unregistered and kept no records, and the gang leader was not called as a witness.

p. 17
02

Whether the casual engagement converted under section 37 of the Employment Act

Holding

The engagement converted to one payable monthly under section 35(1)(c), continuous work having been performed for some two years and eight months.

Reasoning

Loading and offloading at a permanent go-down is continuous work not completable within three months, satisfying either limb of section 37(1). The Appellant, custodian of the records under section 74, produced only six scattered days and put forward no other start date; under section 10(7) the burden of disproving the alleged term fell on it.

p. 22
03

Whether the termination was fair

Holding

The termination was unfair both substantively and procedurally; the Appellant proved no reason and no process.

Reasoning

The Respondent discharged his initial burden under section 47(5) and the burden of justification passed to the Appellant, which offered only a bare denial. The alleged reason - lapse of the medical certificate - was of the Appellant's own making since it withdrew the renewal letter. No section 41 process was followed; the Respondent was simply turned away at the end of a shift.

p. 24
04

Whether the awards (notice pay, compensation, leave pay, service pay) were justified

Holding

Each award was justified; the challenge rested solely on the premise of no employment relationship, which failed.

Reasoning

Notice pay followed from conversion under section 35(1)(c); the three months' compensation for a termination with neither reason nor process after nearly three years was moderate and disclosed no error of principle; leave pay was justified as the employer produced nothing to show leave was taken; service pay stood because the Appellant did not establish NSSF membership or another qualifying scheme.

p. 24

Legal principles established

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  • An employer cannot escape employment obligations by placing an intermediary between itself and the worker; the statute anticipates employers acting through agents, foremen, managers or factors.
  • Employment status is determined by the combined indicators of control, integration, economic reality and mutuality of obligation, not by the parties' labels.
  • When a respondent puts forward a positive case that a third party was the employer, the burden of proving that case is its own.
  • An employer who produces only a sample of attendance records from scattered days cannot displace evidence of continuous service; the adverse inference is that the complete record would not have supported it.
  • A reason for termination manufactured by the employer is neither valid nor fair within sections 43 and 45(2) of the Employment Act.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The judgment of the trial court delivered on 21st August 2025 in Mombasa MCELRC No. E813 of 2023 is upheld in its entirety
  3. 3.The Appellant shall bear the Respondent's costs of this appeal
On appeal from
Chief Magistrate's Court at Mombasa
Mombasa MCELRC No. E813 of 2023
Jurisdiction invoked
First appeal from the Chief Magistrate's Court under the Employment and Labour Relations Court's appellate jurisdiction

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, "Hydery (P) Limited v Enock Bosire Ondieki", Case Analysis (2026). ELRC Appeal No. E182 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2734/eng@2026-09-30

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