https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/1762

**REPUBLIC OF KENYA** **IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI** **ELRC CAUSE NO. E580 OF 2024** **PAUL NYAEGA………………………………………………........CLAIMANT** **VERSUS** **MEDIHEAL GROUP OF HOSPITALS…..............................RESPONDENT** **JUDGMENT** **Background** 1. The parties to the action had an employment relationship which the Claimant contends came to a close in January 2024 when he reported to work only to find the workplace closed. He asserts that the Respondent did not readmit him to the workplace thereafter thus effectively but unlawfully closing the employment relationship between the parties. 2. It is the Claimant’s case that the Respondent had hired his services as a Chief Nurse with effect from January 2020. He contends that the parties agreed on a monthly salary of Ksh. 121,269.00. 3. The Claimant asserts that the Respondent defaulted in paying his salary from October 2023. He asserts that this state of affairs persisted until January 2024 when his services were terminated. 4. The Claimant avers that he reported to work on an undisclosed date in January 2024 and found the hospital closed. He asserts that the Respondent sent him and other employees several text messages promising to reopen the hospital but this did not happen. 5. The Claimant asserts that the Respondent did not issue him with notice to terminate his services. In the premises, he contends that his contract of service was improperly closed. As such, he prays for, inter alia, payment of his salary arrears and compensation for unfair termination of his services. 6. Although the Respondent was served with Summons to Enter Appearance, it did not enter appearance or file a defense to the cause. As such, the suit proceeded to hearing as an undefended cause. **Analysis and Determination** 1. The Claimant produced a letter dated 19th July 2023 which was addressed to him by the Respondent. The letter asked him to explain why disciplinary action should not be taken against him for alleged negligence of duty. 2. This letter confirms the Claimant’s contention that he was an employee of the Respondent. The fact that the Respondent was exercising disciplinary control over the Claimant for neglecting his duties at its (the Respondent’s) premises implies that the two had an employment relationship. Based on this uncontroverted evidence, the court finds that the parties had an employment relationship. 3. The Claimant has stated on oath that his salary per month was Ksh. 121,260.00. This evidence was not controverted by the defense. In the premises, the court is convinced on a balance of preponderances that the Claimant’s monthly salary was Ksh. 121,260.00. 4. The Claimant asserts that the Respondent did not remunerate him for the months of October, November and December 2023 and January 2024. The Respondent did not provide evidence to the contrary. In the premises, the court is convinced on a balance of probabilities that the Respondent did not remit the Claimant’s salary for the aforesaid months and hereby enters judgment for him for Ksh. 485,040 being salary arrears. 5. The Claimant asserts that when he reported to work in January 2024, he found the hospital closed. He contends that the Respondent sent him a message informing him that it was to reopen the hospital shortly. However, he states that this did not happen. 6. The Claimant asserts that the Respondent neither issued him with notice to terminate his services nor formally closed the employment relationship between them in accordance with the law. As such, he contends that his services were improperly terminated. 7. The law obligates an employer to follow a prescribed procedure to close an employee’s contract of service. If the reason for termination of the contract is misconduct, poor performance or incapacity on the part of the employee, the employer ought to notify the employee of the particular ground upon which he proposes to close the contract. He should also accord the employee an opportunity to be heard before the contract is closed (see section 41 of *the Employment Act*). In case of redundancy, the employer ought to issue the affected employee with the requisite redundancy notice and pay him severance pay (see section 40 of *the Employment Act*). 8. There is no evidence that the Respondent informed the Claimant of the reasons why his services were discontinued. There is no evidence that the Claimant was served with the requisite notice to terminate his services. There is no evidence that the Respondent accorded the Claimant an opportunity to be heard before his contract was closed. 9. In the premises, it is apparent that the Claimant’s services were improperly terminated. It is so declared. 10. The Claimant is entitled to compensation for unfair termination of his contract. Taking into account the fact that he had served the Respondent for close to four years when his services were terminated, the court awards him compensation for unfair termination of his contract which is equivalent to his salary for four months, that is to say Ksh. 485,040.00. 11. The Claimant is also entitled to pay in lieu of notice to terminate his contract in terms of sections 35 and 36 of *the Employment Act*. As such, the court awards him Ks. 121,260.00 under this head. 12. The Claimant is awarded interest on the amount awarded at court rates from the date of judgment. 13. The award herein is subject to the statutory deductions which were applicable at the time the contract between the parties was terminated. 14. The Claimant is awarded costs of the suit. **Summary of Findings and Award** 1. After evaluating the pleadings and evidence on record against the applicable law, the court makes the following findings and attendant orders:- 2. The court finds that the Respondent failed to pay the Claimant salary for October, November and December 2023 and January 2024. Accordingly, the court enters judgment for the Claimant for Ksh. 485,040.00 being salary arrears. 3. The court finds that the Respondent unfairly terminated the Claimant’s contract of service. 4. The court awards the Claimant Ksh. 485,040.00 as compensation for unfair termination of his contract of service. 5. The court awards the Claimant Ksh. 121,260.00 as pay in lieu of notice to terminate his contract of service. 6. The court awards the Claimant interest on the aforesaid amounts at court rates from the date of this decision. 7. The award to the Claimant is subject to the statutory deductions that were applicable at the time the contract of service between the parties was terminated. 8. The court awards the Claimant costs of the case. **Dated, signed and delivered on the 26th day of June, 2026** **B. O. M. MANANI** **JUDGE** In the presence of: …………….for the Claimant …………….for the Respondent **ORDER** **In light of the directions issued on 12th July 2022 by her Ladyship, the Chief Justice with respect to online court proceedings, this decision has been delivered to the parties online with their consent, the parties having waived compliance with Rule 28 (3) of the ELRC Procedure Rules which requires that all judgments and rulings shall be dated, signed and delivered in the open court.** **B. O. M MANANI**