Rahman & 3 others v Daallo Airlines Limited (Cause E543, E542, E544 & E545 of 2021 (Consolidated)) [2026] KEELRC 62 (KLR) (23 January 2026) (Judgment)
- Court
- Employment & Labour Relations Court
- Case number
- 62
- Citation
- [2026] KEELRC 62 (KLR)
- Decided
- 23 January 2026
The Court finds that the Claimants were constructively dismissed due to the Respondent's failure to pay their salaries and failure to honor a settlement agreement.
Facts
The Claimants were employed by the Respondent in various positions from 2006 to 2017. The Respondent failed to pay their salaries between 2018 and 2019, leading to a suspension and a settlement agreement that was not honored.
Issues
- Whether the Claimants were constructively terminated by the Respondent.
- Whether the Claimants were entitled to the reliefs sought.
Reasoning
The indefinite suspension and the settlement agreement that was not honored led to the conclusion that the Claimants were constructively dismissed. The court also found that the non-payment of salaries was a significant breach of the employment contract.
Outcome
The Claimants were found to be constructively dismissed and entitled to the reliefs sought.
Remedies
- Compensation for unfair termination of employment.
Authorities cited
Legislation (2)
- Employment Act
- Constitution of Kenya
Cases cited (4)
- Western Excavating (ECC) Ltd v Sharp
- Coca Cola East & Central Africa Ltd v Maria Kagai Ligaga
- Metto v Mediheal Group of Hospitals
- Nyabuti v East African Safari Express Ltd
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