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ELRCPartially AllowedMemorandum of Claim dated 26th November 2020 (Nairobi)· [2025] KEELRC 2507 (KLR)

Kenya Hotels Allied Workers Union & another v Crest Hotel t/a Hotel Rio (Employment and Labour Relations Cause E6497 of 2020) [2025] KEELRC 2507 (KLR)

Employment and Labour Relations Court
22 September 2025
7,553 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~30 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that firing a hotel manager without a disciplinary hearing was unfair, awarding him over Kshs 1.4 million despite weak documentation.

What this practically means

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Executive summary

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The Claimant union, on behalf of grievant Michael Barasa, a former General Manager of the Respondent hotel, challenged the termination of his employment on 8th December 2018 on grounds of 'loss of faith' linked to doubtful debts allegedly incurred under his watch. The grievant denied causing the debts, attributed them to the hotel's pre-existing credit policy and other staff, and complained that he was condemned unheard. The Respondent filed a defence and counterclaim, asserting the grievant was on a fixed-term contract, had admitted wilful negligence, and had guaranteed debts of Kshs 505,455, and that the conciliator's report of 29th July 2020 bound the parties. The court framed three issues: fairness of the termination, proof of the counterclaim, and remedies. It held that the grievant was never subjected to a disciplinary hearing as required by section 41 of the Employment Act, and since the employer must prove a valid reason and fair procedure under section 45(2), the termination was unfair and unjustified. On the counterclaim, the respondent failed to call its receptionist or any evidence directly linking the grievant to the debts, and it was dismissed. The court awarded the grievant unpaid November 2018 salary, 7 days' December salary, accrued leave days, 14 off days, one month's notice pay and 3 months' salary as compensation for unfair termination, totalling Kshs 1,407,667 less statutory deductions. The Respondent was ordered to pay costs plus interest from the date of judgment.

Key legal issues

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01

Whether the termination was substantively and procedurally fair

Holding

The termination was unfair and unjustified because no disciplinary hearing under section 41 was held and the employer did not prove a valid reason.

Reasoning

The termination letter of 1st December 2018 cited 'loss of faith' over doubtful debts. Section 41 requires the employer to explain the reasons and allow the employee to be accompanied and heard before termination. Section 45(2) requires the employer to prove both a valid and fair reason and a fair procedure. No hearing was held, so the court could not find a valid reason existed, rendering the termination unfair.

p. 13
02

Whether the respondent proved its counterclaim of Kshs 505,455

Holding

The counterclaim was not established and was dismissed.

Reasoning

RW2 admitted the grievant worked with others and that the receptionist checked guests in and out, but the receptionist was not called as a witness. Without that evidence, the court could not ascertain that guests left on the grievant's authorisation, and no evidence directly connected the grievant to the debts.

p. 14
03

What remedies the grievant is entitled to

Holding

The grievant was awarded terminal dues totalling Kshs 1,407,667/- less statutory deductions, including 3 months' compensation for unfair termination.

Reasoning

Having found the termination unfair, the court awarded unpaid November salary, 7 days' December salary, accrued leave days, 14 off days, one month's notice pay, and 3 months' salary as compensation under section 49, in place of the 12 months sought.

p. 14

Legal principles established

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  • An employer must subject an employee to a hearing under section 41 of the Employment Act before termination; without it, termination is unfair regardless of the reason.
  • A party alleging that an employee authorised guests to leave without paying bears the burden of proving it; failure to call the key witness is fatal.

Court orders

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  1. 1.Payment of unpaid November 2018 salary of Kshs 206,000/-
  2. 2.Payment of 7 days worked in December 2018 of Kshs 48,066.67/-
  3. 3.Payment of unpaid leave days not taken of Kshs 233,466.67/-
  4. 4.Payment of 14 off days not taken of Kshs 96,133.33/-
  5. 5.Payment of one month pay in lieu of notice of Kshs 206,000/-
  6. 6.Payment of 3 months' salary as compensation for the unfair termination (Kshs 618,000/-), total award Kshs 1,407,667/- less statutory deductions
  7. 7.Respondent to pay costs of the suit plus interest at court rates from the date of judgment
  8. 8.Counterclaim dismissed
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the Employment and Labour Relations Court Act (trade dispute referred under the Labour Relations Act, section 69(a) conciliation)

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, "Kenya Hotels Allied Workers Union & another v Crest Hotel t/a Hotel Rio (Employment and Labour Relations Cause E6497 of 2020) [2025] KEELRC 2507 (KLR)", Case Analysis (2025). Memorandum of Claim dated 26th November 2020 (Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2507/eng@2025-09-22

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