Medalion Steakhouse Limited v Francis Musyoka Samuel
The bottom line
#A Kenyan court confirmed that employees are owed leave, overtime and house allowance dues even when their dismissal was fair or they resigned.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the trial court erred by awarding the Respondent his terminal dues despite dismissing the claim for unfair termination
Key legal issues
#Whether terminal dues can be awarded where the claim for unfair termination is dismissed
Yes; leave, house allowance, public holidays and overtime are statutory dues awardable irrespective of how employment ended.
The court held that dues awardable to an employee do not depend on the fairness of termination. Even where separation is cordial or by resignation, statutory dues remain payable. The trial court was therefore correct to dismiss the unfair termination claim yet award terminal dues.
Whether the trial court's capping of awards at three years under section 90 of the Employment Act was correct
No; the capping was a wrong interpretation. Claims filed within 12 months of cessation are not limited to three years.
Section 90 requires continuing-injury claims to be filed within 12 months of cessation of employment. The Respondent resigned in June 2023 and filed in December 2023, within time. The claims could therefore cover the full 4 years 9 months of employment, following the German School Society decision on continuing wrongs.
Burden of proof on leave, house allowance, overtime and public holidays
The employer bore the burden to produce records and a written contract; failing that, the employee's allegations stood uncontroverted.
Sections 9, 10(6) and (7), 31 and 74 of the Employment Act obliged the employer to keep and produce records and to issue a written contract showing consolidated salary. The Appellant produced no attendance registers, muster roll or written contract, so the trial court's findings on unpaid leave, house allowance, overtime and public holidays were upheld.
Legal principles established
#- Terminal dues such as leave, house allowance, public holidays and overtime are statutory dues payable to an employee irrespective of whether the termination was fair or unfair, or whether the employee resigned.
- Under section 90 of the Employment Act, a claim based on continuing injuries must be filed within 12 months of cessation of employment, and if so filed, is not limited to the three years preceding dismissal.
- Where an employer fails to reduce the contract into writing and fails to produce employment records under sections 9, 10(6) and (7) and 74 of the Employment Act, allegations of unpaid leave, unconsolidated salary and overtime stand uncontroverted.
Court orders
#- 1.Appeal dismissed with costs to the Respondent
- 2.Awards capped at three years by the trial court varied to the period worked of 4 years and 9 months
- 3.Leave pay Kshs 511,909.06/=
- 4.Overtime pay Kshs 1,024,069/=
- 5.House allowance Kshs 234,070.52/=
- 6.Public Holidays worked Kshs 145,293.30/=
- 7.Total award Kshs 1,915,341.88/=
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- On appeal from
- Magistrates' Court (Milimani, ELRC)
- Milimani MCELRC No. E2203 of 2023
- Jurisdiction invoked
- First appellate jurisdiction over the subordinate court's judgment (Employment and Labour Relations Court Appeals Division)
Relief refused
#Setting aside of the trial court's judgment and dismissal of the Respondent's claim with costs
The court found terminal dues are payable irrespective of the manner of separation and the appeal lacked merit
Costs
Appeal dismissed with costs to the Respondent
Quotable passages
#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 upshot the Appeal is found unmerited and is hereby dismissed with costs to the Respondent while varying the awards made by the trial court which were capped at three years to the period worked of 4 years and 9 months
The employment courts have repeatedly held that those terminal dues are payable even if the termination was fair or unfair as these dues are an employee’s statutory dues.
The courts have in a number of cases clarified this section of the law to mean that for continuing injuries what the Claimant needs to do is file their claim 12 months after cessation of employment in order to claim the continuing injuries irrespective of the number of years it has taken.
This being a first appeal, we are reminded of our primary role as a first appellate court namely, to re-evaluate, re-assess and reanalyze the extracts on the record and then determine whether the conclusions reached by the learned trial Judge are to stand or not and give reasons either way
Issues in the judgment
#Judgment dated 22nd September 2026 but appeal filed June 2025 and submissions dated January and March 2026; dates internally consistent but the memorandum of appeal is dated 11th June 2025, one month after the judgment appealed.
Overtime rate stated as '1.5%' where 150% is evidently meant.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Medalion Steakhouse Limited v Francis Musyoka Samuel", Case Analysis (2026). Appeal No. E189 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2506/eng@2026-09-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.