Kensalrise Limited v Makundi (Employment and Labour Relations Appeal E009 of 2023) [2025] KEELRC 1258 (KLR) (4 April 2025) (Judgment)

Facts

The Respondent, Makundi, sued the Appellant, Kensalrise Limited, for compensation and terminal dues for alleged unfair termination of his employment. The trial court awarded him Kshs. 12,800 as one month's pay in lieu of notice and Kshs. 166,400 as 12 months' salary as compensation for unfair termination.

Issues

1. Whether the trial court erred in law and fact by holding that the Respondent was an employee of the Appellant and awarding him compensation of Kshs. 239,195
2. Whether the trial court erred in fact and law by failing to take into account the lack of an employment contract between the Respondent and the Appellant
3. Whether the trial court erred in law and fact by disregarding the agreement between Kensalrise Limited and Saipo Ventures, who was an independent contractor providing manpower services to the Appellant Company
4. Whether the trial court erred in law and fact by disregarding the evidence in court showing that the Notice to show cause letter, minutes of the disciplinary meeting, and the subsequent termination letter were issued by Saipo Ventures

Reasoning

The court re-evaluated the evidence and found that the Respondent was not an employee of the Appellant but an independent contractor. The trial court's award of compensation was based on incorrect facts and legal errors.

Outcome

Appeal upheld

Authorities cited