Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedStatement of claim dated 30th May 2024

Muriu v Njuca Consolidated Limited (Employment and Labour Relations Cause E025 of 2024) [2025] KEELRC 363 (KLR)

Employment and Labour Relations Court
13 February 2025
2,037 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

#

Kenya's ELRC in Nyeri ruled that forced resignation through employer frustration counts as unfair constructive dismissal, awarding an employee over Kshs.1.3 million.

What this practically means

#

Executive summary

#
The claimant, employed by the respondent as Security Manager from 15th June 2001, was sent on 30 days' compulsory leave on half salary on 10th August 2023 to pave way for investigations into alleged misconduct. He was never informed of the outcome, was not allowed back to work, and his salary was paid in small instalments. He resigned by letter dated 1st December 2023 citing frustrations, and sued for a declaration of constructive dismissal, twelve months' compensation under section 49(1)(c) of the Employment Act, unremitted NSSF and NHIF dues, salary arrears and leave arrears. The respondent denied the claim, alleging absconding after the compulsory leave and raising limitation, but did not tender any evidence at the defence hearing. The court held that the claimant's unrebutted evidence proved on a balance of probability that his resignation was involuntary and amounted to constructive dismissal, applying the Coca Cola v Ligaga principles that the employer's conduct must be a fundamental breach assessed objectively. Judgment was entered for the claimant for compensation of Kshs.1,140,000 (12 months' gross salary) and salary arrears of Kshs.198,627, totalling Kshs.1,338,627, subject to statutory deductions, with costs and interest at court rates. The claims for unremitted NSSF and NHIF dues failed for lack of proof, and the leave arrears claim for 2019 and 2020 failed because that leave had been forfeited. The suit therefore partially succeeded.

Questions the Court framed

#

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

  1. 1.Whether the resignation amounted to constructive dismissal.
  2. 2.Whether the claimant is entitled to the reliefs sought.

Key legal issues

#
01

Whether the claimant's resignation amounted to constructive dismissal

Holding

The resignation was involuntary and amounted to constructive dismissal caused by the employer's fundamental breach - unending compulsory leave without investigation outcome, repossession of his car, and payment of salary in small instalments.

Reasoning

The court applied the Coca Cola v Ligaga principles: the employer's conduct must be a fundamental breach going to the root of the contract, evaluated objectively. The claimant's uncontroverted evidence showed he was sent on compulsory leave, never recalled, never given the investigation report or a chance to explain, and was paid in small bits. A clear link existed between the resignation and the employer's conduct, proved on a balance of probability.

p. 4
02

Entitlement to compensation under section 49(1)(c) of the Employment Act

Holding

The claimant was entitled to compensation of twelve months' gross salary (Kshs.1,140,000) given his 22 years of unblemished service and non-contribution to the termination through misconduct.

Reasoning

Constructive dismissal is unfair and unlawful as it is not grounded on the employee's conduct and no fair procedure is followed. Taking into account the claimant's long service of 22 years, the certificate of appreciation, and the fact that the alleged misconduct was never communicated to him nor proven, twelve months' gross salary at Kshs.95,000 was held reasonable.

p. 4
03

Effect of failure by the respondent to adduce evidence

Holding

The respondent's defence, alleging absconding and limitation, remained unsubstantiated and the claimant's evidence stood uncontroverted.

Reasoning

Despite filing a response denying the claim and asserting the claim was statute-barred, the respondent neither attended the defence hearing nor filed witness statements. Relying on Linus Ng'ang'a Kiongo v Town Council of Kikuyu, the court held that pleadings unsupported by evidence remain mere statements of fact, leaving the claimant's evidence unrebutted.

p. 3

Legal principles established

#
  • Where a respondent files a defence but fails to adduce evidence at the hearing, the defence remains a mere statement of unsubstantiated facts and the claimant's evidence is uncontroverted and unrebutted.
  • Constructive dismissal occurs where an employee involuntarily resigns due to the employer's conduct; the focus is on the employer's conduct, tested objectively, amounting to fundamental breach.

Court orders

#
  1. 1.A declaration that the claimant was constructively dismissed from employment by the respondent
  2. 2.Compensation of twelve (12) months gross salary at Kshs.1,140,000.00
  3. 3.Salary arrears for August to December 2023 of Kshs.198,627.00, total judgment of Kshs.1,338,627.00
  4. 4.The award is subject to statutory deductions but in addition to costs and interest at court rate from the date of the judgment

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 under the Employment Act (section 49(1)(c) invoked for compensation)

Relief refused

#

NSSF unremitted dues at Kshs.19,440 and NHIF unremitted dues at Kshs.24,000

No evidence tendered to prove the deductions were made by the respondent and not remitted

p. 4

Leave arrears at Kshs.190,000 for 2019 and 2020

Leave for 2019 and 2020 had been forfeited; only accumulated leave in the current calendar year was payable on exit

p. 4

Costs

The award is subject to statutory deductions but in addition to costs and interest at court rate from the date of this judgment (costs of the suit to the claimant).

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.

I enter judgment for the claimant as follows: a. Compensation……………………………… Kshs.1,140,000.00 b. Salary arrears………………………………….Kshs.198,627.00 Total Kshs.1,338,627.00
p. 5Final orders - judgment entered for the claimant
The award is subject to statutory deductions but in addition to costs and interest at court rate from the date of this judgment.
p. 5Interest, costs and statutory deductions
in constructive dismissal, the issue to consider is the conduct of the employer and not that of the employee.
p. 3Test for constructive dismissal
It follows that the claim is not merited because the leave had been forfeited.
p. 4Rejection of leave arrears claim

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Muriu v Njuca Consolidated Limited (Employment and Labour Relations Cause E025 of 2024) [2025] KEELRC 363 (KLR)", Case Analysis (2025). Statement of claim dated 30th May 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/363/eng@2025-02-13

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