[2025] KEELRC 1525 (KLR)

[2025] KEELRC 1525 (KLR)

The court found that the respondent's failure to pay the claimant's salary for three consecutive months, without justification, constituted a fundamental breach of the employment contract and amounted to constructive dismissal. The transfer to Nairobi was not a demotion or an act of bad faith, and the claimant...

Source-derived case information.

Citation
[2025] KEELRC 1525 (KLR)
Parties
Applicant: Naseem Khan; Respondent: MFI Document Solutions Limited
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Kisumu
Jurisdiction
Kenya
Judgment Date
27 May 2025
Case Number
Cause E005 of 2025
Procedural Posture
Employment Cause / Judgment
Outcome
Judgment for the claimant.
Judges
JK Gakeri
Legal Topics
Constructive Dismissal, Unlawful Termination, Salary Non Payment, Employee Transfer, Notice Pay, Leave Entitlement
Source Language
english
Employment and Labour Constructive Dismissal Unlawful Termination Salary Non Payment Employee Transfer Notice Pay Leave Entitlement

Source-derived case record

Summary, issues, holding and outcome

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Parties

Naseem Khan

Applicant

MFI Document Solutions Limited

Respondent

Procedural Posture

Employment Cause / Judgment

Legal Issues

  1. 1 Whether the claimant was constructively dismissed by the respondent.
  2. 2 Whether the claimant is entitled to the reliefs sought for constructive dismissal, unpaid salary, notice pay, and accrued leave.

Ratio Decidendi

The court found that the respondent's failure to pay the claimant's salary for three consecutive months, without justification, constituted a fundamental breach of the employment contract and amounted to constructive dismissal. The transfer to Nairobi was not a demotion or an act of bad faith, and the claimant failed to provide evidence of demotion or to request a review of the transfer. The court held that non-payment of salary is a central term of employment, and its breach entitled the claimant to treat the contract as repudiated. The claimant was therefore entitled to compensation for constructive dismissal, one month's salary in lieu of notice, accrued leave, unpaid salary for the...

Court Disposition

Judgment for the claimant.

Orders

  • Respondent to pay the claimant five months' gross salary as compensation for constructive dismissal (Kshs.561,585.00).
  • Respondent to pay one month's gross salary in lieu of notice (Kshs.112,317.00).