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ELRCPartially AllowedNot stated in judgment

Seventh Day Adventist Church (EA) Limited & another v Onderi (Appeal E003 of 2025) [2025] KEELRC 1460 (KLR)

Employment and Labour Relations Court
15 May 2025
2,243 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed a pastor's dismissal was unfair because the employer proved no reason, but reinstatement was barred by the three-year statutory deadline.

What this practically means

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Executive summary

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The Respondent, a pastor employed by the Appellants, sued before the Magistrate's Court at Ogembo claiming unfair termination following allegations of sexual misconduct and a dismissal on 17th June 2019 after a disciplinary hearing. He sought reinstatement, salary in lieu of notice, service pay, damages, leave pay, pension refund and costs. The Appellants entered appearance but filed no defence and called no witnesses. On 28th August 2024 the Learned Magistrate found the termination substantively and procedurally unfair, ordered reinstatement with full salary for the period out of employment. The Appellants appealed, arguing that reinstatement was granted without regard to section 49(4) of the Employment Act and outside the three-year limit in section 12(3)(vii) of the Employment and Labour Relations Act, and that back salary was contrary to the doctrine that salary rewards work done. The Respondent maintained the appeal was incompetent and that the Appellants' case was uncontroverted. Applying the first-appeal standard in Selle v Associated Motor Boat Co, the Court upheld the finding of unfair termination under section 43 of the Employment Act, given the employer's failure to prove reasons for dismissal. However, it held reinstatement erroneous as the statutory period had lapsed, and set aside the trial judgment, substituting a declaration of unfair dismissal, 12 months' salary as compensation, re-engagement on the same terms with no loss of benefits, and costs of the suit before the Magistrate's Court, with no order on the costs of the appeal.

Questions the Court framed

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

  1. 1.Whether the trial Magistrate erred in granting reinstatement without considering the factors in section 49(4) of the Employment Act
  2. 2.Whether reinstatement granted more than three years after dismissal contravened section 12(3)(vii) of the Employment and Labour Relations Act
  3. 3.Whether the award of salary arrears from dismissal to reinstatement was contrary to law
  4. 4.Whether the trial Magistrate erred in evaluating the evidence given that the Appellants called no witnesses

Key legal issues

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01

Whether the reinstatement ordered by the trial court was lawful

Holding

The reinstatement was erroneous because the statutory three-year period under section 12(3)(vii) of the Employment and Labour Relations Act had elapsed; re-engagement and compensation were substituted.

Reasoning

While the trial court was entitled to grant reliefs for unfair termination, reinstatement was time-barred since more than three years had passed from dismissal. The Court substituted the remedy of 12 months' salary as compensation and ordered re-engagement on the same terms with no loss of benefits, in line with Employment Act remedies of re-engagement or compensation.

p. 5
02

Burden of proving reasons for termination

Holding

Under section 43 of the Employment Act the employer must prove the reasons for termination; the Appellants offered no defence or evidence, so the termination was unfair.

Reasoning

Section 43 imposes a reverse burden on the employer to tender reasons satisfying the statutory test; where no reason is proved, termination is unfair under section 45. The Appellants entered appearance but filed no defence, called no witnesses and left the Respondent's testimony unchallenged, so the finding of both substantive and procedural unfairness stood, justifying the declaration and compensation.

p. 4
03

Whether back salary is recoverable upon reinstatement

Holding

Salary is an entitlement, not a common law reward for work done; reinstatement can be accompanied by back pay, but here backpay was displaced by the compensation award.

Reasoning

The Court corrected the Appellants' contention that the common law doctrine that salary is a reward for work done bars salary arrears. Employment law is a special area; reinstatement can include back pay, as the cited TSC v Olale decision recognised. However, since reinstatement itself was set aside, the Court substituted 12 months' salary compensation instead of backpay.

p. 4

Legal principles established

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  • A first appellate court must reconsider the evidence, evaluate it afresh and draw its own conclusions while making allowance for not having seen or heard the witnesses.
  • Salary is an entitlement of the employee, not a common law reward for work done; reinstatement can be ordered with back pay.
  • Under section 43 of the Employment Act, the employer bears the burden of proving the reasons for termination, failing which the termination is unfair.

Court orders

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  1. 1.A declaration issued that the dismissal of the Respondent was unfair and unlawful within the meaning of section 43
  2. 2.An award of 12 month's salary compensation for the dismissal
  3. 3.Re-engagement of the Respondent on the same terms with no loss of benefits
  4. 4.Costs of the suit before the Magistrate's Court awarded to the Respondent

The bench

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

majority

Wrote the judgment

On appeal from
Magistrate's Court at Ogembo
Not stated in judgment
Jurisdiction invoked
First appellate jurisdiction over the Magistrate's Court claim decided under the Employment Act

Relief refused

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Reinstatement as ordered by the trial Magistrate

The statutory period for reinstatement had passed

p. 5

Costs of the appeal

The Court made no order on costs in respect of the appeal

p. 5

Costs

Respondent to have the costs of the case before the Magistrate's Court; no order on costs in respect of the appeal (implying each party bears their own costs of the appeal).

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.

In the final analysis the decision of the Magistrate's Court is set aside and substituted with an order as follows:a. A declaration be and is hereby issued that the dismissal of the Respondent was unfair and unlawful within the meaning of section 43.
p. 5Final orders - declaration of unfair dismissal
The reinstatement ordered was erroneous for having fallen out of the legal parameters. Instead of the backpay which was ordered by the Learned Magistrate, the Court will grant the remedy of 12 month's salary as compensation to the Respondent and order a re-engagement to the position he held with no loss of benefit.
p. 5Substitution of reinstatement with compensation and re-engagement
Employment law is a special area of law, it is not akin to civil litigation where common law paradigms hold sway. In appropriate cases reinstatement can be ordered together with back pay. A salary is not a reward for work done. It is an entitlement to an employee.
p. 4Nature of salary and back pay in employment law
The case before the Court being a first appeal in the hierarchy of judicial avenues for determination of disputes, requires the appellate court to reconsider the evidence, evaluate it afresh and draw its own conclusions but making allowance for the fact that it neither saw nor heard the witnesses.
p. 4Duty of a first appellate court

Issues in the judgment

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minor

The judgment refers to the Respondent being 'summoned for a disciplinary hearing' and then says he 'was simply issued with a dismissal letter when he presented himself for the disciplinary hearing', and the parties dispute whether the hearing occurred as described; the judgment does not resolve this evidentiary conflict explicitly.

minor

The judgment twice misspells 'offered' and 'sufficient' as 'ofiered' and 'suficient' in the text, and the Appellants' actual names do not appear anywhere in the judgment.

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, "Seventh Day Adventist Church (EA) Limited & another v Onderi (Appeal E003 of 2025) [2025] KEELRC 1460 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1460/eng@2025-05-15

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