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ELRCAllowedCause No. 1861 of 2011· [2013] KEELRC 104 (KLR)

Gladys Kakai v Pan Africa Chemicals Limited [2013] KEELRC 104 (KLR)

Industrial Court of Kenya
3 October 2013
2,820 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 secretary was unfairly fired because her employer gave no reasons and never heard her side, awarding her Kshs.238,410.

What this practically means

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Executive summary

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The claimant, employed by the respondent as a secretary from October 1999 (having earlier worked for the respondent's predecessors) at a monthly salary rising to Kshs.12,420/=, had her services terminated by letter dated 23rd March 2009 which gave no reasons. Reasons were only supplied by an internal memo of 25th March 2009, citing packaging of company files to Nairobi without authority and failure to ensure delivery of a parcel to Mombasa on 22nd March 2009. The respondent relied on prior warnings and asserted the claimant signed for her terminal dues. The claimant protested that the reasons were an afterthought, that she was never heard, and claimed overtime for 1324 hours worked between 15th October 2004 and 25th March 2009 plus 12 months' salary as compensation. The court framed three issues: fairness of the termination, entitlement to relief, and costs. It found the termination not justifiable on the evidence, offending Section 45 of the Employment Act, 2007 on valid reason and fair procedure, and Section 41 because the provision for hearing the claimant was 'absent in toto'. The post-termination memo reasons were held to be an afterthought. The respondent also failed to rebut the claimant's evidence on working hours, she having combined secretarial, receptionist and clocking duties. The court allowed the claim in full, awarding Kshs.89,370/= in overtime and Kshs.149,040/= as compensation (12 months' salary), totaling Kshs.238,410/=, with costs to the respondent. Judgment was delivered on 3rd October 2013 by D.K. Njagi Marete, J.

Key legal issues

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01

Whether the termination of the claimant's employment was unfair, wrongful and unlawful

Holding

The termination was unfair, wrongful and unlawful. No reasons were given in the termination letter dated 23rd March 2009; the reasons in the memo of 25th March 2009 were an afterthought; and the claimant was never heard before termination, offending Sections 41 and 45 of the Employment Act, 2007.

Reasoning

The court found the employer failed to prove a valid and fair reason for termination as required by Section 45(2) of the Employment Act. The reasons were only recited in an internal memo of 25th March 2009, two days after the termination letter, following the claimant's protest. No explanation was given to the claimant and no opportunity to be heard was afforded, offending Section 41. The claimant's salary increments and a letter of recommendation further undermined the employer's case of poor performance.

p. 6
02

Whether the claimant was entitled to overtime pay for 1324 hours worked between 15th October 2004 and 25th March 2009

Holding

The claim was allowed; the respondent failed to rebut the claimant's evidence of extended working hours, given that she combined the duties of typist/secretary, receptionist and clocking officer.

Reasoning

The respondent did not bring out a clear case to rebut the claimant's working hours, bearing in mind that she combined the duties of typist/secretary, receptionist and clocking officer, implying she reported earlier and left later than all other employees. The court found she must be compensated for the extra hours at 1½ times the normal hourly rate.

p. 6
03

Whether the claimant was entitled to 12 months' salary as compensation for unfair termination

Holding

Compensation equivalent to 12 months' gross salary at the time of termination was awarded as all elements of the prayers were proven in evidence and law.

Reasoning

Having found the termination unfair, wrongful and unlawful, the court held the claimant entitled to the relief sought and assessed compensation at the maximum of 12 months' gross salary (Kshs.149,040/=) in addition to the overtime award, finding all elements of the prayers proven in evidence and law.

p. 6

Legal principles established

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  • An employer bears the burden of proving both the validity of the reason for termination and that a fair procedure was followed; failure to give reasons at the time of termination and to hear the employee offends Sections 41, 43 and 45 of the Employment Act, 2007.
  • Reasons for termination communicated by an employer only after the employee protests are an afterthought and not valid reasons for termination.

Court orders

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  1. 1.Payment of Kshs.89,370/= to the claimant for 1324 hours of extra hours/overtime worked from 15th October 2004 to 25th March 2009, calculated at 1½ times the normal hourly rate
  2. 2.Compensation equivalent to 12 months' salary (Kshs.149,040/=) for unfair and wrongful termination
  3. 3.Total award of Kshs.238,410/= in favour of the claimant
  4. 4.Costs of the cause to be borne by the respondent

Authorities

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Legislation

  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44
  • Employment Act, 2007Section 46
  • Employment Act, 2007Section 51
  • Employment Act, 2007Section 42(1)
Jurisdiction invoked
Original jurisdiction of the Industrial Court of Kenya over employment and labour relations disputes (claim of wrongful and unfair termination of employment)

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, "Gladys Kakai v Pan Africa Chemicals Limited [2013] KEELRC 104 (KLR)", Case Analysis (2013). Cause No. 1861 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/104/eng@2013-10-03

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