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ELRCPartially AllowedCause No 297 of 2011· [2012] KEELRC 266 (KLR)

GICHUKI KABUKURU V POSTAL CORPRATION OF KENYA [2012] KEELRC 266 (KLR)

Industrial Court of Kenya
5 October 2012
2,438 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's employment court ruled that probation cannot legally exceed 12 months, and firing without proving reasons makes a dismissal unfair.

What this practically means

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Executive summary

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The Claimant was employed by the Respondent as Assistant Manager/Corporate Communication by letter dated 5th May 2009 on a 12-month probation. On 4th June 2010 the Respondent extended the probation by a further six months, and on 21st December 2010 it terminated the probationary appointment with immediate effect without stating reasons, paying only Ksh.43,959.60 as one month's salary in lieu of notice after demand. The Claimant sued for salary arrears for acting as Manager/Corporate Communication, notice pay and a declaration that the termination was unlawful. The parties consented to determination on pleadings and written submissions. The court framed two issues: whether the termination was unfair and wrongful, and what remedies were due. It held that Section 42 of the Employment Act caps probation at twelve months in mandatory terms, so the purported extension was void and the Claimant automatically became a permanent employee on 5th May 2010. The termination letter gave no reasons; under Section 43(1) the employer must prove reasons for termination, failing which the termination is unfair under Section 45. The poor-performance justification was an afterthought contradicted by a commendation letter from the Permanent Secretary two months before termination. The claim for higher-duties salary arrears failed for want of proof of the higher post's salary. The court converted the dismissal into a normal termination and awarded Ksh.38,500 notice pay differential and Ksh.1,111,560 as 12 months' compensation, plus a certificate of service, with costs to the Respondent.

Key legal issues

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01

Legality of extending probation beyond the statutory maximum

Holding

The extension of the 12-month probation by a further six months was unlawful; the probation ceased automatically and the Claimant became a permanent employee on 5th May 2010.

Reasoning

Section 42 of the Employment Act caps probation at six months, extendable once by up to six months with the employee's agreement, and prohibits employment under a probationary contract beyond that aggregate. The court held the wording mandatory, so the purported extension had no legal effect and the Claimant automatically converted to a permanent employee at the expiry of 12 months.

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02

Whether the termination was unfair and unlawful

Holding

The termination was unfair and unlawful because the termination letter gave no reasons and the employer failed to prove the alleged poor performance, which was an afterthought contradicted by letters of commendation.

Reasoning

The 21st December 2010 letter merely referred to the earlier deferral of confirmation and terminated the probation appointment without explaining reasons. Under Section 43(1) the employer bears the burden of proving reasons; failing that, the termination is unfair under Section 45. A commendation letter from the Permanent Secretary dated 18th October 2010, two months before termination, contradicted the poor-performance justification.

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Remedies for the unlawful termination

Holding

The dismissal was converted into a normal termination with one month's pay in lieu of notice at gross pay and the maximum 12 months' compensation, plus a certificate of service; the higher-duties pay claim failed for want of proof.

Reasoning

Having found unfair termination, the court awarded the difference between basic and gross pay for one month's notice (Ksh.38,500) and 12 months' gross salary as compensation (Ksh.1,111,560). The claim for higher-duties salary arrears failed because neither party evidenced the higher post's salary, and the court declined to speculate.

p. 5

Legal principles established

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  • Under Section 42 of the Employment Act, a probationary period shall not exceed six months, extendable by not more than six months with the employee's agreement, and the aggregate cannot exceed twelve months; the provision is mandatory.
  • Where the employer fails to prove the reasons for termination, the termination is deemed unfair under Sections 43(1) and 45 of the Employment Act.

Court orders

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  1. 1.Payment of the difference in one month's notice pay in lieu of notice from basic pay to gross pay amounting to Ksh.38,500
  2. 2.Compensation equivalent to 12 months' salary for wrongful termination amounting to Ksh.1,111,560 (Ksh.92,630 x 12), grand total Ksh.1,150,060
  3. 3.Claimant to be issued with a certificate of service
  4. 4.Costs of the suit borne by the Respondent

Authorities

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Legislation

  • Employment ActSection 42(2) and (3)
  • Employment ActSection 43(1)
  • Employment ActSection 45
Jurisdiction invoked
Jurisdiction of the Industrial Court over employment and labour relations disputes (Employment Act, Sections 42, 43 and 45 applied)

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, "GICHUKI KABUKURU V POSTAL CORPRATION OF KENYA [2012] KEELRC 266 (KLR)", Case Analysis (2012). Cause No 297 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2012/266/eng@2012-10-05

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