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ELRCPartially AllowedCause No. 1796 of 2014· [2015] KEELRC 37 (KLR)

Caroline Gathoni Gikonyo v Kenya Association of Investment Groups [2015] KEELRC 37 (KLR)

Employment and Labour Relations Court of Kenya
17 December 2015
3,928 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled an employer must pay a departing employee's full notice-period salary, largely because it never issued a written employment contract.

What this practically means

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Executive summary

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The Claimant was employed by the Respondent in July 2013 as Business Development Manager on a monthly salary of Kshs.89,608.00 net (Kshs.120,000.00 gross), serving a six-month probation without a written contract. She tendered a resignation notice in early November 2013 to take effect on 30th November 2013, but the Respondent failed to pay her October and November 2013 salaries and refused to issue a Certificate of Service, alleging she absconded duty from 16th to 31st October 2013 and retained company property (a laptop, petty cash book and parking fee receipts worth Kshs.18,000.00). The Claimant explained her absence as arising from a road accident on 20th October 2013. The court held that the Respondent's failure to issue a written contract under sections 9 and 10 of the Employment Act operated to its disadvantage, with disputed terms construed in the employee's favour. Having accepted the Claimant's 30-day resignation notice, the Respondent remained liable for her salary until 30th November 2013, since the notice period during probation was a matter for the employee to choose and for the employer to accept. However, because the Claimant failed to notify the employer of her incapacity or produce a certificate of incapacity as required by section 30(2), eleven days' salary (Kshs.44,000.00) for the period 21st to 31st October 2013 was deducted. The Respondent's demand for return of company property failed for want of a counter-claim and any written basis for lawful deduction. Judgment was entered for the Claimant for Kshs.135,216.00 plus costs, with an unconditional certificate of service to issue within 7 days.

Key legal issues

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01

Mandatory written contract of employment under sections 9 and 10 of the Employment Act

Holding

The Respondent's failure to issue a written contract within two months of employment operated to its disadvantage and shifted the benefit of doubt to the employee

Reasoning

Sections 9 and 10 of the Employment Act require a written contract stating particulars of employment within two months. The Respondent issued none. The court noted the absence of any record of duties, tools handed over, or accountability schedules, and held that disputes must be construed in the employee's favour where the employer avoided a written contract.

p. 4
02

Resignation during probation and the applicable notice period

Holding

An employee who resigns is free to give longer notice than the statutory minimum; once accepted, she remains employed until the notice lapses and is entitled to salary for that period

Reasoning

Section 42 permits termination during probation on short notice, but an employee may choose to give a longer notice of her own volition. The employer had the option to accept the notice conditionally or unconditionally, or to terminate earlier on 7 days' notice. Having accepted the 30-day notice, the Respondent remained liable for salary until 30th November 2013.

p. 4
03

Absence from work due to an accident and sick leave entitlement

Holding

The Claimant failed to notify the employer of her incapacity or produce a medical certificate, so she forfeits pay for the period 21st to 31st October 2013

Reasoning

Section 30(2) of the Employment Act requires an employee to notify the employer of absence due to sickness and, on resumption, to produce a certificate of incapacity. The Claimant's silence about her accident meant the absence was unexplained; the salary for that period is deductible. However, the employer also sat back and issued no notice under section 41(2), so summary dismissal was not available.

p. 5
04

Respondent's demand for return of company property without a counter-claim

Holding

The claim for the laptop, petty cash book and parking fees could not be entertained as no counter-claim was filed and no written basis for deduction existed

Reasoning

The rules of pleading required the Respondent to file a counter-claim to raise the alleged unreturned property. With no written contract or handover schedule, there was no documentary basis for any lawful deduction under section 19 of the Employment Act, and granting the claim would be a miscarriage of justice.

p. 6
05

Certificate of service

Holding

A certificate of service is due unconditionally under section 51 of the Employment Act

Reasoning

Section 51 entitles a departing employee to a certificate of service, which the Respondent had refused to issue. The court ordered it to issue unconditionally within 7 days.

p. 6

Legal principles established

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  • Where an employer fails to issue a written contract of employment, contested terms must be construed from the perspective of the employee
  • Once a resignation notice is accepted, the employee remains an employee until the notice period lapses and is entitled to salary for that period
  • An employee claiming sick leave must notify the employer and produce a certificate of incapacity from a qualified medical practitioner
  • An employer must hear and consider an employee's representations before terminating for absence or poor performance

Court orders

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  1. 1.Judgment entered for the Claimant for the sum of Kshs.135,216.00 together with costs
  2. 2.A certificate of service to be issued within 7 days
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act claims)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Caroline Gathoni Gikonyo v Kenya Association of Investment Groups [2015] KEELRC 37 (KLR)", Case Analysis (2015). Cause No. 1796 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/37/eng@2015-12-17

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