Odundo v Kenya Institute of Management (Cause E320 of 2023) [2025] KEELRC 1430 (KLR)
The bottom line
#The Employment Court ruled a Kenyan institute unfairly dismissed an employee it hadn't paid, awarding him about Kshs 2.1 million plus interest.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of the disciplinary process
The hearing process was tainted by bias because managers who suspended the Claimant sat on both the Disciplinary Committee and the Appeals Disciplinary Committee
The Claimant's uncontroverted testimony was that at least two managers who suspended him sat on the initial Disciplinary Committee and one also sat on the Appeals Committee. Applying the principle that a person who decided a matter should not sit on its appeal, the Court found the apprehension of bias well-founded. The failure to disclose the identity of the student allegedly solicited also impeded the Claimant's defence, though that allegation did not lead to dismissal.
Substantive fairness of the dismissal
The reason for dismissal - absence from work without permission - did not meet the test of sections 43 and 45(4) of the Employment Act
The Respondent had withheld salary and maintenance during suspension, and the Claimant had communicated about this before failing to report on 18 August 2022. The Court held the employer could not benefit from its own breach of contractual obligations, so the absence was not a valid and fair reason for summary dismissal.
Unpaid salaries and leave allowance
The claims for unpaid salaries and accrued leave allowance succeeded because the Respondent produced no pay records or evidence of payment
The Respondent made only general denials and, as custodian of employee records, produced no pay records under sections 18 and 20 of the Employment Act, no schedule of final dues, and no records showing payment of the contractual leave allowance under clause 7.4 of the HR Manual. The unchallenged computations by the Claimant were therefore accepted.
Compensation and notice pay
Compensation of 3 months' gross salary and 1 month's pay in lieu of notice were awarded; reinstatement was refused
Considering the roughly 3 years of service, the Court found the equivalent of 3 months' gross salary (Kshs 96,000/- monthly) appropriate as compensation, plus 1 month's salary in lieu of notice. Reinstatement failed because the Claimant laid no basis for it.
Legal principles established
#- An employer, as custodian of employee records, bears the evidential burden to produce pay records when it denies wage claims
- Persons who suspended an employee should not sit on the disciplinary committee or appeal committee hearing that employee's case
- An employer that fails to fulfil its contractual obligations during suspension cannot rely on the employee's failure to report to work as a valid reason for dismissal
Court orders
#- 1.Declaration that the summary dismissal of the Claimant was unfair and that the Respondent was in breach of contract
- 2.Award of unpaid half-salaries Kshs 336,000/-
- 3.Award of unpaid full salary Kshs 1,248,000/-
- 4.Award of leave allowance Kshs 144,000/-
- 5.Award of compensation equivalent to 3 months' gross salary Kshs 288,000/-
- 6.Award of 1 month's pay in lieu of notice Kshs 96,000/- (total Kshs 2,112,000/-)
- 7.Award to attract interest at court rates from the date of judgment
- 8.Counterclaim dismissed with no order on costs
- 9.Claimant denied costs for filing submissions outside the agreed timelines
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over unfair termination and breach of contract under the Employment Act, 2007
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Odundo v Kenya Institute of Management (Cause E320 of 2023) [2025] KEELRC 1430 (KLR)", Case Analysis (2025). Not stated in the judgment text supplied. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1430/eng@2025-05-15
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.