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ELRCPartially AllowedNot stated in judgment (former Cause 15/2010 referenced is a separate criminal case)· [2013] KEELRC 94 (KLR)

Mary W. Ndirangu v Board Of Trustee National Social Security Fund [2013] KEELRC 94 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
15 January 2013
2,391 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled NSSF unfairly retired an employee facing criminal charges, ordering half pay restored and dues paid within 15 days.

What this practically means

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Executive summary

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The Claimant, employed by the National Social Security Fund in July 1990 as a Senior Accountant and later Internal Audit Manager, was suspended on half salary on 9th April 2010 after being charged as the 9th accused in Criminal Case No. 15 of 2010 with neglect of official duty over an alleged 1.6 billion loss. She discovered in September 2011 that she had been removed from the payroll with effect from 31st August 2011 via a pay change advice showing retirement under the Respondent's '50 year rule' (Staff Employment Guideline clause 5:8), with no prior notice or opportunity to make representations. She sought an order restraining termination until the criminal case concluded, payment of half salary, and costs. The Respondent maintained she was lawfully retired under the 50-year rule, that she had been paid and her dues calculated. The court framed two issues: wrongful termination and entitlement to half pay during suspension. Applying Section 43 of the Employment Act, it found the employer gave no reasons for the termination, rendering it unfair. It further held that under Section 62 of the Anti-Corruption and Economic Crimes Act the Claimant was entitled to half pay with full allowances from the date of charge, which was breached. Invoking Article 50's presumption of innocence, the court lifted the termination, placed the Claimant on suspension on half pay until the criminal case concludes or she attains 60 years, whichever is earlier, allowed reinstatement and full pay if acquitted, and directed calculation and payment of dues (including the Kshs. 2,100,000) within 15 days. Judgment delivered by Justice Nzioki wa Makau on 15th January 2013 in Nairobi.

Key legal issues

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01

Whether the Claimant's retirement/termination under the 50-year rule was lawful

Holding

The termination was unfair and improper as no reasons were given and the rule used did not strictly fit the Claimant

Reasoning

The Claimant only learned of her removal from the payroll when collecting her payslip, and the pay change advice showed retirement under the 50-year rule with no prior notice or opportunity to make representations. Section 43 of the Employment Act places the burden on the employer to prove reasons for termination; none were given. Further, retiring her while she faced an ongoing criminal charge ascribed guilt contrary to Article 50's presumption of innocence.

p. 3
02

Whether the Claimant was entitled to half-pay during suspension

Holding

Yes; the Respondent breached Section 62 of the Anti-Corruption and Economic Crimes Act by failing to pay half salary and full allowances from the date of charge

Reasoning

The Claimant was suspended on 9th April 2010 after being charged in Criminal Case No. 15 of 2010, but her half salary was never effected and was ultimately stopped on 31st August 2011. Section 62(1) and (2) of the Anti-Corruption and Economic Crimes Act mandates suspension at half pay from the date of charge, with allowances paid in full. The Respondent is bound to honour these provisions and calculate the sums due from the date of charge until termination.

p. 4

Legal principles established

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  • In any claim arising out of termination, the employer must prove the reason or reasons for termination, failing which the termination is deemed unfair
  • A public officer charged with corruption or economic crime must be suspended at half pay from the date of charge with allowances paid in full
  • An accused person is presumed innocent until found guilty

Court orders

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  1. 1.The termination of the Claimant is lifted and she is placed on suspension on half pay until termination of the criminal case or attainment of 60 years, whichever comes earlier
  2. 2.If the trial court finds her not guilty she is entitled to her full pay and reinstatement
  3. 3.The sum of Kshs. 2,100,000/- already prepared to be factored into the Claimant's dues
  4. 4.The Claimant's pay to be calculated and paid out within the next 15 days
Jurisdiction invoked
Employment dispute heard by the Industrial Court; filed under certificate of urgency (specific enabling provision not stated in judgment)

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, "Mary W. Ndirangu v Board Of Trustee National Social Security Fund [2013] KEELRC 94 (KLR)", Case Analysis (2013). Not stated in judgment (former Cause 15/2010 referenced is a separate criminal case). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/94/eng@2013-01-15

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