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ELRCPartially AllowedNot stated in the judgment (Statement of Claim dated 2/7/2009, filed 6/7/2009)· [2012] KEELRC 32 (KLR)

JOSEPH TOWETT V KALEE LTD [2012] KEELRC 32 (KLR)

Industrial Court (Employment and Labour Relations Court)
15 October 2012
3,047 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled KASS FM unfairly dismissed its General Manager without a hearing, awarding him over Ksh.1.3 million in compensation and refunds.

What this practically means

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Executive summary

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The Claimant, Joseph Towett, sued the Respondent (operator of KASS FM) seeking reinstatement, salary arrears, special damages, 12 months' compensation for wrongful dismissal, or alternatively terminal dues. He claimed he was employed in February 2005 as General Manager on a verbal three-year contract at Ksh.85,000 per month, and was dismissed on 3/7/2006 after being accused of client money irregularities, without being heard by any investigative panel. The Respondent denied a valid General Manager contract, alleging summary dismissal followed investigations into misappropriation, and that Ksh.14,488 was lawfully surcharged and Ksh.120,000 deducted for a vehicle. The court framed two issues: whether the termination was unlawful, and the remedies available. It found the termination unfair because the claimant was never given an opportunity to appear before an investigative panel, breaching natural justice; because the employer omitted the mandatory written contract under Section 9 of the Employment Act, making the claimant's duties unascertainable; and because allegations regarding the vehicle lacked valuation or assessor reports. Reinstatement was declined as impracticable after six years under Section 49(4)(a). The court awarded Ksh.120,000 refund of the vehicle deduction, Ksh.1,020,000 being 12 months' salary compensation, one month's salary in lieu of notice, one month's salary in lieu of leave, a certificate of service, and costs to the Respondent. Judgment was signed, dated and delivered on 15 October 2012 by Hellen Wasilwa, Judge.

Key legal issues

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01

Whether the claimant's termination was unlawful/unfair

Holding

The termination was unfair: the claimant was never heard before an investigative panel, no written contract existed (the employer's statutory omission), and allegations of loss were unsupported by valuation or assessor reports

Reasoning

The court found the claimant was suspended and dismissed after an allegedly unsatisfactory written reply but was never given the chance to appear before any investigative panel. The absence of a written contract, which Section 9 of the Employment Act mandates the employer to draw, made it impossible to fix the claimant's duties, so the anomalies could not be blamed on him. Allegations about the vehicle lacked documentary proof. Termination was therefore unfair.

p. 5
02

What remedies flow from unfair termination

Holding

Reinstatement was refused as impracticable six years on; the court awarded compensation of 12 months' salary under Section 49, notice and leave pay, refund of the Ksh.120,000 vehicle deduction, a certificate of service, and costs

Reasoning

Applying Section 49(4)(a) of the Employment Act, the court held reinstatement after six years was impracticable. It substituted monetary remedies: 12 months' salary at Ksh.85,000, one month's notice pay, one month's leave pay, refund of the Ksh.120,000 deducted for the vehicle, a certificate of service, and costs against the Respondent.

p. 5

Legal principles established

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  • An employer must issue a written contract of service for contracts of three months or more, and failure to do so cannot be visited against the employee
  • Termination without an opportunity to be heard before an investigative or disciplinary panel breaches the rules of natural justice

Court orders

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  1. 1.Payment of Ksh.120,000/= deducted from his salary towards purchase of the car
  2. 2.Payment of Ksh.85,000 x 12 = Kshs.1,020,000/= equivalent to 12 months salary compensation for wrongful termination
  3. 3.One month's salary in lieu of notice – Ksh.85,000/=
  4. 4.One month's salary in lieu of leave – Ksh.85,000/=
  5. 5.The Claimant be issued with a certificate of service
  6. 6.Costs of this suit to be paid by the Respondent

Authorities

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Legislation

  • Employment ActSection 9(1) and (2)
  • Employment Act 2007Section 49(4)(a)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes; Employment Act 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "JOSEPH TOWETT V KALEE LTD [2012] KEELRC 32 (KLR)", Case Analysis (2012). Not stated in the judgment (Statement of Claim dated 2/7/2009, filed 6/7/2009). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2012/32/eng@2012-10-15

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.