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ELRCAllowedMemorandum of Appeal dated 18th September 2024

Gathuthi Tea Factory v Kamunya (Employment and Labour Relations Appeal E023 of 2024) [2025] KEELRC 1367 (KLR)

Employment and Labour Relations Court
9 May 2025
2,563 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court in Nyeri threw out a seasonal worker's damages award because the claims for leave, overtime and NSSF money were never properly pleaded or proved.

What this practically means

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Executive summary

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The Employment and Labour Relations Court at Nyeri (Onesmus N Makau, J) allowed a first appeal against a trial magistrate's judgment in a seasonal employment dispute. The respondent, employed by the appellant under successive seasonal contracts from 2001 (last contract 1st-31st July 2020 at Kshs.1,289 per day under a CBA), sued after the appellant opted to outsource labour at Kshs.400 per day. The trial court found no unfair termination and dismissed the compensation and notice claims, but awarded Kshs.114,631 for pro-rata leave (59/69 days), overtime and unremitted NSSF deductions based on CBA clause 22(c)(iii). On appeal, the court, applying Selle v Associated Motor Boat Co Ltd and Peters v Sunday Post Ltd, held it could re-evaluate the evidence. It found the trial court's awards perverse: the leave and overtime particulars were not pleaded, payslips showed the leave and overtime were paid, the contract schedule showed the respondent never worked in December 2019, and the NSSF claim's 64 months were neither pleaded nor proved. Critically, the trial court had shifted the burden of proof to the employer by awarding claims merely because the employer had not proved payment. The court set aside the trial judgment, substituted an order dismissing the respondent's statement of claim, and awarded the appellant costs of both courts plus interest at court rates. Judgment was delivered virtually via Teams with the parties' consent, waiving 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 award of damages granted by the trial court should be disturbed

Key legal issues

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01

Whether the trial court's award of pro-rata leave, overtime pay and unremitted NSSF deductions was supported by pleadings and evidence

Holding

The awards were perverse: the particulars were not pleaded and there was evidence (payslips, contract schedule and NSSF statement) that leave and overtime were paid and NSSF remitted; the awards were set aside.

Reasoning

The trial court awarded 59/69 leave days and overtime without those particulars being pleaded and contrary to payslips showing payment. For NSSF, the respondent never pleaded or proved the 64 months of non-remittance; the burden of proof was wrongly shifted to the employer. Findings not flowing from pleadings and evidence are perverse and amenable to interference on first appeal.

p. 5
02

Whether the trial court wrongly shifted the burden of proof to the employer on overtime and NSSF claims

Holding

Yes - the trial court awarded these claims only because the employer had not proved payment, reversing the burden of proof.

Reasoning

The trial court reasoned that since no evidence of payment was tendered by the employer, the claims were awarded as prayed. The court held this contrary to the law of evidence: the party alleging overtime work or non-remittance of deductions must lead prima facie evidence before any burden shifts to the employer.

p. 5
03

The scope of a first appeal on findings of fact and quantum

Holding

The first appellate court may re-evaluate the evidence and draw its own conclusions but will interfere only where findings are unsupported by evidence or perverse.

Reasoning

Applying Selle v Associated Motor Boat Co Ltd and Peters v Sunday Post Ltd, the court reiterated that an appellate court is not bound by trial findings of fact but must exercise the jurisdiction with caution, given it neither saw nor heard the witnesses.

p. 5

Legal principles established

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  • A first appellate court is not bound by the trial court's findings of fact and may re-evaluate the evidence, but must make due allowance for not having seen or heard the witnesses.
  • A finding of fact not supported by the pleadings and evidence is perverse and may be interfered with on appeal.
  • The burden of proving overtime work and non-payment lies on the employee; it does not shift to the employer absent prima facie evidence.

Court orders

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  1. 1.Appeal allowed
  2. 2.Trial court's judgment set aside and substituted with an order dismissing the respondent's statement of claim
  3. 3.Appellant awarded costs of the appeal and the court below plus interest at court rates

The bench

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

majority

Wrote the judgment

On appeal from
Magistrates' Court (ELRC subordinate court)
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's decision (Memorandum of Appeal dated 18th September 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.

Consequently, I allow the appeal, set aside the trial court's judgment and substitute it with an order dismissing the respondent's statement of claim. The appellant is also awarded costs of the appeal and the court below plus interest at court rates.
p. 6Final orders - disposition
Without such prima facie evidence the burden of proof cannot shift to the employer.
p. 5Burden of proof on overtime claims
A finding of fact by the trial court that does not fiow from the pleadings and evidence is perverse and may occasion miscarriage of justice, and is therefore amenable to interference by the appellate court.
p. 5Interference with perverse findings of fact

Issues in the judgment

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minor

The judgment inconsistently states the pro-rata leave award as Kshs.79,051 (grounds of appeal) and Kshs.76,051 (determination), and the NSSF award as Kshs.29,200 in the pleadings but Kshs.29,600 in the trial court's quoted ruling and in the determination.

minor

The prayer for overtime in the pleadings refers to 69 hours at Kshs.220 per hour totalling Kshs.15,180, but the trial court's quoted ruling refers to '59 overtime hours' and the appeal grounds refer to a 59-day leave award, creating ambiguity in the figures.

minor

Paragraph 31 of the judgment contains an internally contradictory sentence regarding the NSSF evidence.

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, "Gathuthi Tea Factory v Kamunya (Employment and Labour Relations Appeal E023 of 2024) [2025] KEELRC 1367 (KLR)", Case Analysis (2025). Memorandum of Appeal dated 18th September 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1367/eng@2025-05-09

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