Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCOtherNot stated in judgment

Koech v Cooperative Bank of Kenya Limited (Cause E065 of 2024) [2024] KEELRC 2429 (KLR)

Employment and Labour Relations Court
4 October 2024
643 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~3 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled an unfair dismissal claim was not automatically time-barred because the clock starts when an employee receives the termination decision, not the letter's date.

What this practically means

#

Executive summary

#
The Claimant, a former Relationship Manager employed by the Respondent Bank, filed a Statement of Claim on 25th January 2024 seeking compensation for unfair termination and terminal benefits. He did not plead the date of termination. The Respondent filed an application dated 21st March 2024 seeking striking out of the Claim as time-barred under Section 89 of the Employment Act, 2007, asserting the Claimant was summarily dismissed on 17th December 2020 and that the three-year limitation period expired on 17th December 2023. The application was supported by an affidavit of Florence Njuguna, the Respondent's Legal Officer, and was canvassed on pleadings, affidavits, documents and submissions. The Court doubted whether Section 89 prescribes limitation for employment disputes, noting the 3-year limitation is prescribed under Section 90. It held that the cause of action in termination arises on the Effective Date of Termination - when the employee receives the termination decision - not necessarily when the dismissal letter is drawn. The record did not disclose when the Claimant received the letter of 17th December 2020; his certificate of service indicated he left employment on 18th December 2020; and he pursued an internal appeal, advised of its failure only on 27th January 2021, receipt date undisclosed. The Court held it could not conclusively determine the EDT without trial evidence, that alternative EDTs must be eliminated through evidence, and that the strike-out application was premature and its orders draconian. The time-bar issue was directed to full trial, with costs in the cause.

Questions the Court framed

#

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

  1. 1.Whether the Claim is time-barred under Section 89 of the Employment Act, 2007
  2. 2.When the cause of action in a termination of employment arises, i.e. the Effective Date of Termination (EDT)

Key legal issues

#
01

Whether Section 89 of the Employment Act prescribes limitation for employment disputes

Holding

The Court doubted that Section 89 prescribes limitation, noting Section 90 prescribes a 3-year limitation period

Reasoning

The Court observed uncertainty as to whether Section 89 governs limitation of time for filing employment disputes, and stated that, unless revised, the 3-year limitation from accrual of the cause of action is prescribed by Section 90. This pointed to Section 90 as the operative limitation provision.

p. 2
02

When the cause of action arises in termination of employment

Holding

The cause of action arises on the EDT - when the employee receives the termination decision - which requires evidential determination at trial

Reasoning

The Court held that the EDT, not the date the dismissal letter is drawn, is when the cause accrues. Since the record did not disclose when the Claimant received the dismissal letter or the appeal outcome, and the certificate of service suggested 18th December 2020, alternative EDTs had to be eliminated through evidence at full trial. The strike-out application was therefore premature.

p. 2

Legal principles established

#
  • The cause of action in termination of employment arises on the Effective Date of Termination, when the employee receives the termination decision, not necessarily the date the termination letter is drawn

Court orders

#
  1. 1.The issue raised preliminarily by the Respondent, on time-bar, is to be canvassed and determined upon the full trial.
  2. 2.Costs in the cause.

The bench

#

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 disputes (Employment Act, 2007)

Relief refused

#

Strike-out of the Claim on the ground of time-bar

Application premature; EDT cannot be conclusively determined without trial evidence

p. 2

Costs

Costs in the cause

Quotable passages

#

Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

The date the cause of action arises, in termination of employment, is the date termination decision, is received by the Employee. It is characterized as the Efiective Date of Termination [EDT] in employment law.
p. 2Effective Date of Termination
The Application filed by the Respondent is premature, and orders sought draconian.
p. 2Strike-out application refused
The issue raised preliminarily by the Respondent, on time-bar, is to be canvassed and determined upon the full trial.
p. 2Final orders

Issues in the judgment

#
minor

Judgment does not state the case number, parties' names, or neutral citation

minor

Respondent invokes Section 89 of the Employment Act for limitation while the Court notes limitation is prescribed by Section 90

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Koech v Cooperative Bank of Kenya Limited (Cause E065 of 2024) [2024] KEELRC 2429 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2429/eng@2024-10-04

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