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ELRCPartially AllowedCause 269 of 2012· [2013] KEELRC 269 (KLR)

FREDRICK MURIITHI THUITA V FIVE FOURTY AVIATION LIMITED [2013] KEELRC 269 (KLR)

Industrial Court of Kenya
3 May 2013
2,474 words in judgment
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The bottom line

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A Kenyan court ruled a pilot's dismissal unfair because the employer's termination letter gave no reasons, awarding him over Kshs 1.8 million.

What this practically means

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Executive summary

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The claimant, a pilot employed by the respondent Five Forty Aviation Limited under a contract dated 1st August 2009 at USD 3,000 monthly, claimed wrongful/unfair termination by letter dated 29th November 2011 without notice, severance, leave pay, overtime or terminal dues. The respondent admitted termination but alleged it was by mutual consent after discussions, asserting the claimant failed conversion training to CRJ aircraft, became uncooperative and quarrelsome in the cockpit, and that all dues were paid. Before judgment, the parties settled by consent payment in lieu of notice, November 2011 salary and 16 leave days totalling Kshs.1,020,000, and the claimant withdrew the severance pay claim. The remaining issues were general damages for wrongful dismissal, overtime/incentive for 193.54 hours at USD 19,354, interest and costs. The court held that the termination letter gave no reasons, contrary to Sections 43 and 46 of the Employment Act, and that the employer failed to prove reasons or to comply with the hearing requirements of Section 41; the alleged mutual agreement was inconsistent with the unilateral termination letter. Termination was declared unfair. The respondent's assertions of fraudulent overtime were unsupported by evidence, and the overtime claim was confirmed, converted at the Central Bank rate of 2nd May 2013 to Kshs.1,619,941.40. Interest was declined as a matter not claimable as of right under Section 49. Compensation of one month's pay (Kshs.225,000) was awarded, a Certificate of Service ordered, and each party directed to bear its own costs.

Key legal issues

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01

Fairness of the termination

Holding

The termination was unfair: the letter of 29th November 2011 gave no reasons, and the employer failed to prove the reasons or to follow the procedural requirements of Sections 41 and 43 of the Employment Act

Reasoning

The termination letter referred only to 'discussions' without stating reasons, yet Section 46 read with Section 43 requires the employer to give and prove reasons for termination. The alleged misconduct (failed training, quarrelsome attitude) was undocumented, disputed, and never addressed through appraisal or the hearing process mandated by Section 41(1) and (2). The claimed mutual agreement was inconsistent with the issuance of a unilateral termination letter. The court therefore found the termination unfair.

p. 5
02

Overtime/incentive flying claim

Holding

The claim for 193.54 hours of overtime/incentive at USD 19,354 was confirmed; the respondent's allegations of fraud and lack of authorisation were unsupported by evidence

Reasoning

The respondent asserted the extra hours were flown fraudulently without the Chief Pilot's permission, but produced no evidence: the colluding staff were not called and no statements were submitted. Given monthly schedules and systems, such fraud would have been easily detected. The contract itself provided for the incentive, and control over overtime hours beyond 65 per month lay with the employer, not the claimant. The claim was therefore confirmed and converted to Kshs at the Central Bank rate of 2nd May 2013.

p. 5
03

Interest

Holding

The prayer for interest was declined

Reasoning

The court accepted the respondent's submission that interest is discretionary upon good reasons and cannot be claimed as of right against the remedies provided under Section 49 of the Employment Act. No good reasons having been shown, the prayer was refused.

p. 6
04

Settled heads under the consent

Holding

Payment in lieu of notice, November 2011 salary and leave days were settled by consent at Kshs.1,020,000.00, with the severance pay claim withdrawn

Reasoning

After extensive evidence and submissions, the parties drew a consent settling payment in lieu of three months' notice (Kshs.675,000), November 2011 salary (Kshs.225,000) and 16 leave days (Kshs.120,000). The claimant withdrew the claim for severance pay of USD 3,000. These heads were no longer before the court for determination.

p. 3

Legal principles established

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  • An employer exercising the right to terminate must give the reason or reasons for termination; failure to prove reasons renders the termination unfair
  • The reasons for termination must be indicated in the termination notice itself; it is a legal requirement
  • A termination by mutual agreement would result in consent, not a letter of termination; issuing a termination letter indicates the parties were not in agreement
  • Where an employer alleges poor performance it must show attempts to address it through a structured performance-appraisal system

Court orders

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  1. 1.A declaration that the claimant's termination by the respondent was unfair
  2. 2.Compensation equivalent to one month pay amounting to Kshs 225,000.00
  3. 3.Overtime/incentive amounting to Kshs.1,619,941.40 (total award Kshs. 1,844,941.40)
  4. 4.Respondent to issue a Certificate of Service to the claimant
  5. 5.Each party to bear their own costs

Authorities

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Legislation

  • Employment ActSection 46
  • Employment ActSection 43
  • Employment ActSection 41(1) and 41(2)
  • Employment ActSection 42(1)
  • Employment ActSection 45
  • Employment ActSection 49
Jurisdiction invoked
Original jurisdiction of the Industrial Court over a claim for wrongful/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, "FREDRICK MURIITHI THUITA V FIVE FOURTY AVIATION LIMITED [2013] KEELRC 269 (KLR)", Case Analysis (2013). Cause 269 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/269/eng@2013-05-03

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