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ELRCOtherNot stated in judgment

Oluoch v Mehta Electricals Limited (Appeal E065 of 2021) [2024] KEELRC 2645 (KLR)

Employment and Labour Relations Court
31 October 2024
1,015 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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Kenya's Employment Court upheld a dismissal appeal loss but refused to make a low-earning worker pay legal costs, protecting access to justice.

What this practically means

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Executive summary

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The Appellant, a General Labourer employed by the Respondent on 28th August 2009, took 25 days' annual leave from 27th May 2017. While on leave, the Respondent instructed him in writing (letters of 30th May 2017 and 25th August 2017) to report to Capital Hill Police Station to assist with investigations into a robbery at the Respondent's business. He did not report to the Police, nor did he return to work. His Claim for compensation for unfair termination and terminal benefits was dismissed with costs to the Respondent on 21st May 2021. On appeal on seven grounds, the Court found no error in the Trial Court's assessment: there was no evidence of termination, constructive or otherwise, no evidence of reporting back to work, and the witnesses the Appellant claimed would prove he was told to leave were never called. The Court held that compliance with lawful employer instructions is an implied contractual term and a statutory requirement under Section 44(4) of the Employment Act, defiance amounting to insubordination, a gross misconduct justifying summary dismissal. Grounds 1 to 6 accordingly failed. However, Ground 7 succeeded: the costs order against a General Labourer earning Kshs 14,786 monthly, who had become an informal worker in Busia County, was unsuitable, since costs orders against blue-collar workers discourage claims and stifle workers' rights. The appeal was declined on all grounds save Ground 7, and no order on costs was made in the Appeal and the Trial Court. Judgment delivered at Nairobi on 31st October 2024 by James Rika, Judge.

Questions the Court framed

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

  1. 1.Whether the Appellant reported back to work after annual leave and was constructively dismissed
  2. 2.Whether there was evidence that the Appellant absconded
  3. 3.Whether termination of employment was unfair
  4. 4.Whether the Trial Court erred in imposing on the Appellant the duty to produce employment records
  5. 5.Whether the Trial Court misapprehended legal principles on the concept of absconding
  6. 6.Whether the order awarding costs to the Respondent was appropriate

Key legal issues

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01

Whether the Appellant was constructively or otherwise dismissed

Holding

No termination by the Respondent was established; the Appellant defied lawful instructions to report to the Police and never reported back to work

Reasoning

The Respondent wrote letters on 25th August 2017 and 30th May 2017 asking the Appellant to report to Capital Hill Police Station; he did not report. There was no evidence he returned to work. His claimed witnesses were never availed, and no employment records he was required to exhibit were produced. Compliance with lawful employer instructions is an implied term and a statutory requirement under Section 44(4) of the Employment Act; defiance constitutes insubordination, gross misconduct.

p. 2
02

Whether the costs order in favour of the Respondent was appropriate

Holding

The costs order was unsuitable against an impoverished General Labourer; the E&LRC regime is designed to protect workers' rights and keep access to industrial justice open

Reasoning

The Claimant earned Kshs 14,786 monthly and had retreated to his rural home as a Juakali worker after losing his job. Although costs follow the event, in the specialized E&LRC jurisdiction the maxim must be contextualized: costs orders against blue-collar workers discourage claims and stifle the advancement of workers' rights. Ground 7 was accordingly allowed.

p. 3

Legal principles established

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  • An implied term of every contract of employment is that the employee shall comply with lawful instructions of the employer; failure amounts to insubordination, a gross misconduct under Section 44(4) of the Employment Act justifying summary dismissal
  • The maxim that costs follow the event must be contextualized in the E&LRC's specialized jurisdiction; costs orders against blue-collar workers discourage filing of claims and stifle workers' rights

Court orders

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  1. 1.The Appeal is declined on other Grounds, save Ground No 7
  2. 2.There shall be no order on costs in this Appeal, and the Trial Court

The bench

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

majority

Wrote the judgment

On appeal from
Trial Court (Employment and Labour Relations Court at first instance)
Not stated in judgment
Jurisdiction invoked
Appellate jurisdiction of the Employment and Labour Relations Court over an appeal from the Trial Court (Memorandum of Appeal dated 18th June 2021)

Relief refused

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Setting aside the Trial Court judgment dismissing the Claim and allowing the prayers before the Trial Court

No evidence that the contract was terminated; the Appellant defied lawful instructions to report to the Police and did not report to work

p. 2

Costs

There shall be no order on costs in this Appeal, and the Trial Court.

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.

It is always an implied term in a contract of employment, that an Employee shall comply with any lawful instructions issued by his Employer, or persons placed in authority by his Employer.
p. 2implied duty to obey lawful instructions
Failure to obey instructions results in an act of gross misconduct called insubordination, which the Claimant may well have been dismissed for, summarily.
p. 2insubordination as gross misconduct
Although costs follow the event under our civil law, the E&LRC regime is a specialized jurisdiction, designed to encourage the promotion and protection of workers’ rights.
p. 3costs follow the event contextualized in E&LRC
a. The Appeal is declined on other Grounds, save Ground No 7. b. There shall be no order on costs in this Appeal, and the Trial Court.
p. 3final orders

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, "Oluoch v Mehta Electricals Limited (Appeal E065 of 2021) [2024] KEELRC 2645 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2645/eng@2024-10-31

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