[2023] KEELRC 1747 (KLR)
The court found that the claimant's letter of appointment clearly established an employment relationship with the 1st respondent, Arrow Motors Group East Africa Limited. The 2nd respondent was referenced as the main company, with the 1st respondent as its automotive division, creating ambiguity as to the actual...
Source-derived case information.
- Citation
- [2023] KEELRC 1747 (KLR)
- Parties
- Applicant: Elizabeth Ngina Mutisya; Respondent: Arrow Motors Group East Africa Limited; Respondent: Amgea Automotive Division Limited; Respondent: Aakif Virani
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause E407 of 2022
- Procedural Posture
- Preliminary Objection / Ruling on Preliminary Objection
- Outcome
- Preliminary objection partially upheld; 3rd respondent struck off; matter to proceed against 1st and 2nd respondents.
- Judges
- NJ Abuodha
- Legal Topics
- Jurisdiction of Elrc, Employer Employee Relationship, Preliminary Objection, Personal Liability of Directors
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Elizabeth Ngina Mutisya
Applicant
Arrow Motors Group East Africa Limited
Respondent
Amgea Automotive Division Limited
Respondent
Aakif Virani
Respondent
Procedural Posture
Preliminary Objection / Ruling on Preliminary Objection
Legal Issues
- 1 Whether the Employment and Labour Relations Court has jurisdiction over the 1st and 3rd respondents in the absence of an employer-employee relationship.
- 2 Whether the 3rd respondent can be personally liable as a managing director in an employment dispute.
- 3 Whether the question of who is the actual employer between the 1st and 2nd respondent is a matter of law or fact.
Ratio Decidendi
The court found that the claimant's letter of appointment clearly established an employment relationship with the 1st respondent, Arrow Motors Group East Africa Limited. The 2nd respondent was referenced as the main company, with the 1st respondent as its automotive division, creating ambiguity as to the actual employer, which is a factual issue to be determined at trial. The 3rd respondent, Aakif Virani, was merely the managing director of the 1st and 2nd respondents and acted as an agent of disclosed principals. There was no allegation or evidence that he acted outside his authorized responsibilities to warrant personal liability. Therefore, the preliminary objection succeeded only to...
Court Disposition
Preliminary objection partially upheld; 3rd respondent struck off; matter to proceed against 1st and 2nd respondents.
Orders
- The 3rd respondent is struck off from the proceedings.
- The issue of the actual employer between the 1st and 2nd respondents to be determined at trial.
Full Case Text
Judgment text and source record
25 paragraphs
Mutisya v Arrow Motors Group East Africa Limited & 2 others (Cause E407 of 2022) [2023] KEELRC 1747 (KLR) (14 July 2023) (Ruling)
Neutral citation: [2023] KEELRC 1747 (KLR)
Republic of Kenya
In the Employment and Labour Relations Court at Nairobi
Cause E407 of 2022
NJ Abuodha, J
July 14, 2023
Between
Elizabeth Ngina Mutisya
Claimant
and
Arrow Motors Group East Africa Limited
1st Respondent
Amgea Automotive Division Limited
2nd Respondent
Aakif Virani
3rd Respondent
Ruling
1. The 1st and the 3rd respondent herein raised a preliminary objection on the ground that this court does not have jurisdiction to determine the dispute herein under section 12 of the Employment and Labour Relations Court Act as there was never any employer-employee relationship between the claimant and the 1st and 3rd respondent.
2. According to the applicant, nowhere in the claimant’s pleadings has she demonstrated an employment nexus between her and the 1st and 3rd respondent herein. The claimant produced a letter of appointment indicating that 1st respondent was her employer hence she could not have been possibly employed by three different employers to undertake the same work. In relation to the 3rd respondent, the applicant contended that the only reason he had been dragged into the suit was because a manager of the claimant’s alleged employers. There was no allegation that the said respondent was her employer. The applicant therefore contended that the mere fact that the 3rd respondent was a manager of the alleged employers did not create an employer-employee relationship between the claimant and the 3rd respondent.
3. The respondent on the other hand contended that the issue raised by the applicant cannot be a preliminary objection because the question of whether on is an employee or not is not a question of law but rather a question of fact that must be ascertained. This according to the respondent could only be done after the full trial.
4. The court has reviewed and considered the pleadings as filed, the documents in support by the claimant particularly the letter of appointment and noted that it is evidently clear that the claimant was an employee of Arrow Motors E.A. ( the 1st respondent herein). The 2nd respondent has been mentioned in the letter of appointment as the main company with the 1st respondent as its automotive division. The 3rd respondent has been described as the managing director of the 1st and 2nd respondent who was in charge of the claimant’s employment. Whereas it was plausible to argue that it was not clear who between the 1st and 2nd respondent was the actual employer of the claimant, it is however clear that the 3rd respondent was the managing director of both respondents hence an agent of a disclosed principal. Nothing has been alleged that he did which was outside his authorized responsibilities that would make him personally liable. To this extent the preliminary objection succeeds to the extent that the 3rd respondent is struck off from the proceedings. The issue of whether who between the 1st or 2nd respondent was the claimant’s employer remains not clear and hence factual and can only be resolved after the trial.
5. The preliminary objection therefore succeeds to the extent only.
6. It is so ordered.
DATED, SIGNED AND DELIVERED VIRTUALLY AT NAIROBI ON THIS 14TH DAY OF JULY, 2023ABUODHA J. N.JUDGEIn the presence of:-………………………………………………..for the Appellant………………………………………………for the Respondent