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ELRCAllowedELRC Cause No E577 of 2024

Godfrey Ashiundu Shilibwa v Mediheal Group of Hospitals

Employment and Labour Relations Court
8 October 2026
1,070 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~4 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that locking an employee out of work and stopping pay counts as unfair termination, awarding the worker over Ksh. 924,000.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Physiotherapist from 18th November 2019 at a monthly salary of Ksh. 84,000.00 and deployed to the Respondent's Eastleigh branch, sued for unfair termination. He alleged that the Respondent stopped paying his salary from September 2023, and that in January 2024 the Respondent's General Manager took the hospital keys and stopped reporting to work, locking him and other workers out of the workplace. He treated this lockout as a termination of his contract and claimed compensation. The Respondent was served but neither entered appearance nor filed a defence, so the suit proceeded as an undefended cause. The court found, on a salary revision letter dated 17th May 2021, that an employment relationship existed. Applying the principle that an employer who locks out an employee, stops assigning work and fails to pay salary repudiates the contract, the court held that the Respondent terminated the contract through its actions and conduct. Since no reasons for the termination were disclosed and there was no evidence of a disciplinary hearing or lawful redundancy process, the termination was found unlawful. The uncontroverted evidence established five months' unpaid salary (September 2023 to January 2024) totalling Ksh. 420,000.00. The court entered judgment for the Claimant for Ksh. 420,000.00 accrued salary, Ksh. 420,000.00 compensation for unfair termination under section 49 of the Employment Act, and Ksh. 84,000.00 in lieu of notice under sections 35 and 36, with interest at court rates from the date of judgment, costs of the case, and subject to applicable statutory deductions. Judgment was delivered online with the parties' consent, waiving compliance with Rule 28(3) of the ELRC Procedure Rules.

Questions the Court framed

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

  1. 1.Whether the parties had an employment relationship
  2. 2.Whether the Respondent unfairly terminated the Claimant's contract of service by locking him out of the workplace
  3. 3.Whether the Claimant proved unpaid salary for September 2023 to January 2024
  4. 4.What remedies the Claimant is entitled to under sections 35, 36 and 49 of the Employment Act

Key legal issues

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01

Existence of employment relationship

Holding

The court was satisfied an employment relationship existed based on a salary revision letter dated 17th May 2021.

Reasoning

The Claimant tendered a document dated 17th May 2021 through which the Respondent revised his salary from 1st April 2021. The Respondent, having not entered appearance or filed a defence, did not controvert this evidence, and the court accepted it as proof of the employment relationship.

p. 2
02

Constructive termination by lockout

Holding

The Respondent, through its actions and conduct, terminated the contract by locking the Claimant out of the workplace.

Reasoning

The Claimant testified that in January 2024 the Respondent's General Manager took the hospital keys and stopped reporting to work, preventing workers from accessing the hospital. Applying the repudiation principle, the court held the employee was entitled to treat the contract as terminated.

p. 3
03

Unlawfulness of the termination

Holding

The termination was unlawful as no reasons were disclosed and no disciplinary hearing or lawful redundancy process was undertaken.

Reasoning

The record did not disclose why the Respondent discontinued the Claimant's services, and there was no evidence of a disciplinary hearing or lawful redundancy. The Respondent having not defended the suit, the uncontroverted evidence established unfair termination.

p. 3
04

Accrued salary arrears

Holding

The Respondent failed to remunerate the Claimant for September 2023 to January 2024, and judgment was entered for Ksh. 420,000.00.

Reasoning

The Claimant's evidence that salary stopped from September 2023 until January 2024 was not controverted. At a monthly salary of Ksh. 84,000.00, the five months' accrued salary totalled Ksh. 420,000.00, for which judgment was entered.

p. 3
05

Compensation and notice pay

Holding

The Claimant was awarded Ksh. 420,000.00 compensation under section 49 of the Employment Act and Ksh. 84,000.00 in lieu of notice under sections 35 and 36.

Reasoning

The contract having been unfairly terminated, compensation equivalent to five months' salary was awarded under section 49. As no notice was issued, one month's salary in lieu of notice was awarded under sections 35 and 36 of the Employment Act.

p. 4

Legal principles established

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  • An employer who locks an employee out of the workplace, stops assigning work and fails to pay salary repudiates the contract, entitling the employee to treat it as terminated.
  • Termination without disclosed reasons, a disciplinary hearing or a lawful redundancy process is unlawful.

Court orders

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  1. 1.Declaration that the parties had an employment relationship
  2. 2.Finding that the Respondent unlawfully terminated the employment relationship
  3. 3.Respondent to pay the Claimant Ksh. 420,000.00 being accrued salary for September, October, November and December 2023 and January 2024
  4. 4.Respondent to pay the Claimant Ksh. 420,000.00 compensation for unfair termination of his contract of service
  5. 5.Respondent to pay the Claimant Ksh. 84,000.00 being one month's salary in lieu of notice
  6. 6.Interest on the aforesaid amounts at court rates from the date of the judgment
  7. 7.Costs of the case to the Claimant
  8. 8.The award is subject to the statutory deductions applicable when the contract was terminated

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations disputes (ELRC Cause No E577 of 2024)

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.

locks an employee out of the workplace; stops assigning the employee work; and fails to remunerate the employee his monthly salary, he will be deemed to have repudiated the contract of service between the parties
p. 2constructive termination by lockout
In the premises, the court finds that the Respondent unlawfully terminated the Claimant's services.
p. 3unfair termination
c) The court orders the Respondent to pay the Claimant the sum of Ksh. 420,000.00 being accrued salary for the months of September, October, November and December 2023 and January 2024.
p. 5final orders - accrued salary
d) The court orders the Respondent to pay the Claimant compensation for unfair termination of his contract of service in the sum of Ksh. 420,000.00.
p. 5final orders - compensation
f) The court awards the Claimant interest on the aforesaid amounts at court rates from the date of this judgment.
p. 5final orders - interest
h) The award to the Claimant is subject to the statutory deductions which were applicable when the contract between the parties was terminated.
p. 5final orders - statutory deductions

Issues in the judgment

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minor

Judgment delivery date appears inconsistent with the cause number year

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, "Godfrey Ashiundu Shilibwa v Mediheal Group of Hospitals", Case Analysis (2026). ELRC Cause No E577 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2782/eng@2026-10-08

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