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)
The bottom line
#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
#Executive summary
#Key legal issues
#Whether the termination was substantively and procedurally fair
The termination was unfair and unjustified because no disciplinary hearing under section 41 was held and the employer did not prove a valid reason.
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.
Whether the respondent proved its counterclaim of Kshs 505,455
The counterclaim was not established and was dismissed.
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.
What remedies the grievant is entitled to
The grievant was awarded terminal dues totalling Kshs 1,407,667/- less statutory deductions, including 3 months' compensation for unfair termination.
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.
Legal principles established
#- 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
#- 1.Payment of unpaid November 2018 salary of Kshs 206,000/-
- 2.Payment of 7 days worked in December 2018 of Kshs 48,066.67/-
- 3.Payment of unpaid leave days not taken of Kshs 233,466.67/-
- 4.Payment of 14 off days not taken of Kshs 96,133.33/-
- 5.Payment of one month pay in lieu of notice of Kshs 206,000/-
- 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.Respondent to pay costs of the suit plus interest at court rates from the date of judgment
- 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
#Practical implications
#Frequently asked questions
#Cite this brief
#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.