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ELRCPartially AllowedNot stated in judgment

Bamburi PLC v Macharia (Employment and Labour Relations Cause E753 of 2022) [2025] KEELRC 1715 (KLR)

Employment and Labour Relations Court
12 June 2025
2,480 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Claimant employer sued its former employee, the Respondent, for Kshs 2,067,765 comprising payment in lieu of notice and refund of school fees benefit. The Respondent had been employed from 4th November 2015 until her resignation effective 31st October 2019. Her contract required three months' written notice or three months' salary in lieu upon termination. She gave only six days' notice. She acknowledged in cross-examination that she did not pay the remainder of the notice period. The court found that the notice period envisaged under the contract was 90 days, and that the Respondent was obligated to pay for the 84 days not served, computed at 84/30 x Kshs 525,332 = Kshs 1,470,904.4, awarded less statutory deductions with interest at court rates from the date of judgment. On the school fees benefit, clause 12 of the contract entitled the Respondent to the education allowance scheme but contained no provision for refund upon separation; the Claimant's witness conceded the recoverability was not in the contract. The claim for refund of Kshs 880,044 therefore failed. On costs, the Respondent had offered to pay the notice pay owed and asked the Claimant not to file suit, but the Claimant filed anyway; the court held the Claimant was not entitled to any costs. The claim was thus partially allowed: notice pay awarded at a recomputed figure, school fees refund and costs refused.

Questions the Court framed

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

  1. 1.Whether the Claimant is entitled to the prayers sought in the Statement of Claim, namely payment in lieu of notice and refund of school fees benefit
  2. 2.Whether the school fees benefit paid to the Respondent was recoverable upon her leaving employment before the end of the year
  3. 3.Who should pay the costs of the Claim

Key legal issues

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01

Whether the Respondent was liable to pay salary in lieu of the unexpired notice period

Holding

Yes - the Respondent was obligated to pay for the 84 days of notice not served, calculated at 84/30 x Kshs 525,332 = Kshs 1,470,904.4

Reasoning

Clause 5 of the contract of employment dated 21/10/2015 required three months' written notice or three months' salary in lieu of notice upon termination by the employee. The Respondent gave only 6 days' notice instead of the 90-day period envisaged. She was therefore contractually bound to pay the remainder of the notice period, which the court computed and awarded less statutory deductions, with interest from the date of judgment.

p. 5
02

Whether the school fees benefit paid to the Respondent was refundable upon her leaving before year-end

Holding

No - the claim for refund of school fees could not stand

Reasoning

Clause 12 of the contract entitled the Respondent to the company's education allowance scheme in accordance with company policy, but contained no provision making the school fees refundable. CW1 conceded in cross-examination that the recoverability of the benefit was not provided in the contract. A claim for refund cannot be sustained where the contract is silent, and the Claimant bore the burden of proving that term.

p. 5
03

Whether the Claimant was entitled to costs

Holding

No - the Claimant was not entitled to any costs

Reasoning

The Respondent had admitted willingness to pay the notice period owed and requested the Claimant not to file suit while she arranged payment, but the Claimant's counsel ignored the request and filed suit. In those circumstances the court found the Claimant's conduct disentitled it to costs, and declined to award the Respondent costs either.

p. 5

Legal principles established

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  • An employee who resigns without serving the full contractual notice period is liable to pay salary in lieu of the notice period not served
  • A claim for refund of a benefit must be anchored in the contract of employment; absent such a provision, the claim fails

Court orders

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  1. 1.Judgment entered for the Claimant against the Respondent for payment in lieu of notice of Kshs 1,470,904.4/- less statutory deductions
  2. 2.Interest at court rates on the awarded amount with effect from the date of the judgment
  3. 3.Claim for refund of school fees benefit dismissed
  4. 4.No order as to costs - each party denied costs, the Claimant not entitled to any costs

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Employment and labour relations jurisdiction of the Employment and Labour Relations Court (Employment Act contract dispute)

Relief refused

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Refund of school fees benefit of Kshs 880,044

No contractual provision required refund of school fees upon termination of employment

p. 5

Costs of the suit

The Respondent had offered to pay the notice period owed and asked the Claimant not to file suit, but the Claimant filed suit anyway

p. 5

Notice pay at the sum claimed (Kshs 1,187,721 as pleaded plus higher demand)

Court recalculated the entitlement at 84 days rather than the amount claimed

p. 5

Costs

The Claimant is not entitled to any costs; no costs awarded to either party

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.

What the claimant is therefore entitled to from the claim is payment of the notice period which I award at kshs 1,470,904.4/- less statutory deductions with interest at court rates with efiect from the date of this judgment.
p. 5Final orders - award of notice pay with interest
Under the contract there is no indication that the school fees paid is refundable after it falls due. The claim for school fees refund by the claimant cannot therefore stand.
p. 5Dismissal of school fees refund claim
It is therefore true that the notice period envisaged under the contract was 90 days. The respondents having only given the claimants 6 days’ notice is obligated to pay the reminder period of 84 days.= 84/30x525,332= Kshs 1,470,904.4/-.
p. 5Computation of contractual notice pay
In the circumstances, I find that the claimants are not entitled to any costs.
p. 5Costs order

Issues in the judgment

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minor

Judgment refers to the parties inconsistently, describing the employee as the 'Respondent' and the employer as the 'Claimant', and at times swaps roles (e.g. 'The respondents having only given the claimants 6 days’ notice'), which can confuse the direction of obligations

material

The pleaded notice pay claim was Kshs 1,187,721 for 24 days' notice, but the court awarded Kshs 1,470,904.4 for 84 days, exceeding the amount claimed without explanation of the arithmetic basis

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, "Bamburi PLC v Macharia (Employment and Labour Relations Cause E753 of 2022) [2025] KEELRC 1715 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1715/eng@2025-06-12

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