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ELRCPartially AllowedCause No 1040 of 2010· [2012] KEELRC 142 (KLR)

KENYA UNION OF DOMESTIC, HOTELS, EDUCATIONAL INSTITUTIONS, HOSPITALS AND ALLIED WORKERS V BOARD OF GOVERNORS KERUGOYA BOYS SECONDARY [2012] KEELRC 142 (KLR)

Industrial Court of Kenya
12 October 2012
3,031 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Industrial Court ruled a school bursar's dismissal unfair because the wrong person fired him and he was never heard, awarding Ksh.472,000 plus costs.

What this practically means

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Executive summary

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The Claimant union, KUDHIEHA Workers, sued on behalf of its member, Charles Njue Gichuki, a School Bursar employed by the Respondent Board of Governors of Kerugoya Boys Secondary School since 1987, whose employment was terminated by the Respondent's Secretary by letter dated 19th October, 2006 on grounds of gross misconduct - presenting new workers' salary schedules without authorisation, having previously received a last warning over a similar issue. The Claimant sought three months' salary in lieu of notice (Ksh.47,640), service gratuity for 20 years (Ksh.233,800), 12 months' compensation (Ksh.140,280) and costs. The Respondent, represented by the Attorney General, defended the summary dismissal as justified gross misconduct and counterclaimed in effect on the breach of contractual duties. The court framed two issues: whether the termination was unfair, and entitlement to the remedies claimed. Relying on its earlier decision in Linus Barasa Odhiambo v Wells Fargo Limited, the court held that where gross misconduct is disputed, Section 41 protections apply. It found the reasons for dismissal invalid and the procedure unfair: the schedules were mere proposals which the Board itself considered as proper agenda on 11th October, 2006, and under Clause 6 of the Collective Agreement, dismissal authority vested in the Board, not its Secretary, who usurped it. All heads of relief succeeded except that gratuity on the age/service ground failed for want of evidence of the grievant's age, though gratuity was awarded on public-interest grounds; Section 35(6) was held to be a mere minimum provision. The court awarded Ksh.472,000.00 plus costs, and suggested the Board might recover its losses from its Secretary.

Key legal issues

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01

Whether the grievant's summary dismissal was procedurally fair and for valid reasons

Holding

The termination was unfair both procedurally and substantively

Reasoning

The court found the schedules presented were proposals considered by the Board as proper agenda, with no recorded embarrassment. Clause 6 of the Collective Agreement vested dismissal authority in the Board, not its Secretary. The Secretary usurped that authority and dismissed on imaginary particulars; neither valid reasons nor due process under Section 41 were established.

p. 5
02

Whether the grievant was entitled to three months' salary in lieu of notice

Holding

Granted - Ksh.47,640 under Clause 6(a)(ii) of the Collective Agreement

Reasoning

Clause 6(a)(ii) provides for three months' notice or pay in lieu for employees of five or more years' service. The grievant had served since 1987, so the remedy as prayed for was granted.

p. 5
03

Whether the grievant was entitled to service gratuity of Ksh.233,800 despite NSSF membership and despite not retiring

Holding

Granted on public-interest grounds under Clause 31(c), as unfair termination was the only obstacle to payment

Reasoning

Clause 31(a) failed for want of proof of age, and ill-health did not apply. However, where parties agree to gratuity, it is in the public interest to pay if unfair termination is the only reason for non-payment. Section 35(6) is a mere minimum and does not preclude better agreed benefits.

p. 6
04

Whether the grievant was entitled to 12 months' salary compensation for loss of employment

Holding

Granted - Ksh.190,560 being twelve months' gross salary

Reasoning

Section 49(1)(c) permits compensation up to twelve months' gross salary. The court considered the six years elapsed since dismissal, the grievant's recourse to dairy farming, and that he would have retired at 60 as a public school employee.

p. 6

Legal principles established

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  • Summary dismissal is lawful only where the statutory criteria for gross misconduct are complied with; where gross misconduct is disputed or absent, the protections of Section 41 (notification and hearing) apply
  • Where a Collective Agreement reserves to the Board (the employer body) the right to terminate for gross misconduct, dismissal by another officer usurping that authority is procedurally unfair and the reasons invalid
  • Section 35(6) of the Employment Act, precluding service pay for NSSF members, is a minimum provision that does not bar agreed better service payments; where an employee has more than one entitlement option, he elects or is deemed to elect the most favourable option

Court orders

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  1. 1.Judgment entered against the Respondent for payment to the grievant of Ksh.472,000.00 being service pay, payment in lieu of notice and compensation for unfair termination
  2. 2.Payment of the costs of this cause by the Respondent

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 44 (including subsections 44(2), 44(3), 44(4))
  • Employment Act, 2007Section 35(6)
  • Employment Act, 2007Section 49(1)(c)
  • Education (Board of Governors) Order, 1964(as establishing the Respondent)
  • Collective Agreement between the partiesClause 6; Clause 6(a)(ii); Clause 31; Clause 31(a), (b), (c)

Cases cited (1)

  • Linus Barasa Odhiambo Vs Wells Fargo Limited
    Industrial Court Cause No. 275 of 2012
Jurisdiction invoked
Original jurisdiction of the Industrial Court under the Industrial Court Act (established under Article 162(2) of the Constitution); the judgment does not cite the specific provision

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "KENYA UNION OF DOMESTIC, HOTELS, EDUCATIONAL INSTITUTIONS, HOSPITALS AND ALLIED WORKERS V BOARD OF GOVERNORS KERUGOYA BOYS SECONDARY [2012] KEELRC 142 (KLR)", Case Analysis (2012). Cause No 1040 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2012/142/eng@2012-10-12

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