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ELRCPartially AllowedCause 1082 of 2010· [2013] KEELRC 357 (KLR)

EVANS MOGUTE NYAUNDI V CHINA ROAD AND BRIDGE CORPORATION (K) LIMITED [2013] KEELRC 357 (KLR)

Industrial Court of Kenya
13 May 2013
1,492 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An employer can have a valid reason to fire you, but still lose in court if you were never given a chance to be heard.

What this practically means

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Executive summary

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The Claimant, employed as a Labourer from about 15th October 2009, sued for wrongful and unfair termination after his employment ended on 9th May 2010. He claimed a declaration that his dismissal was unlawful, one month's salary in lieu of notice, prorata leave, prorata gratuity, 12 months' salary as compensation for unfair termination, a certificate of service and costs. The Respondent admitted the employment but maintained that the dismissal was lawful because the Claimant was a chronic absentee who had deserted duty, that its internal disciplinary terms sufficed, and that all dues were paid. The Court first fixed the Claimant's salary at Kshs. 14,419 on the strength of his payslips, the Respondent having failed to produce records required under Sections 10 and 20 of the Employment Act. On substance, the Court found the Respondent had a valid reason for dismissal: the Claimant's claim of permission to be absent was uncorroborated, and desertion without lawful cause justifies summary dismissal under Section 44(4). On procedure, however, the Court held that even summary dismissal requires a hearing under Section 41; there is no summary disciplinary procedure, and internal employer procedures must yield to the law. Applying Justice Rika's holding in Anne Atieno Sadieda v Lavage Laundrette & Drycleaners, the termination was found unfair for want of due process. The Court awarded two months' salary as compensation, one month's salary in lieu of notice and prorata leave of 1.75 days for 7 months, totalling Kshs. 49,145. Gratuity was refused as the Claimant was an NSSF contributor. The Respondent was directed to issue a Certificate of Service, and each party was to bear their own costs.

Key legal issues

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01

Substantive justification for summary dismissal

Holding

The Respondent had substantive justification for terminating the Claimant's employment on the ground of desertion of duty.

Reasoning

The Respondent alleged the Claimant deserted duty. The Claimant claimed he had permission from his Foreman, but adduced no corroborative evidence. Under Section 44(4) of the Employment Act absence without leave or lawful cause justifies summary dismissal. The Court could not rely on the Claimant's uncorroborated word against the Respondent's denial, and found the reason valid.

p. 3
02

Procedural fairness in summary dismissal

Holding

The termination was unfair for want of due process because the Claimant was never given an opportunity to show cause.

Reasoning

Section 41 of the Employment Act requires an employer to explain the reasons for termination and hear the employee's representations before dismissal, including summary dismissal under Section 44(3) or (4). The Respondent relied on its own Terms and Conditions of Employment, but internal procedures must conform to the law. No evidence showed the Claimant was heard; the Court agreed with Justice Rika in the Anne Atieno Sadied case that substantive justification does not displace procedural fairness.

p. 3
03

Determination of the Claimant's salary

Holding

The Court adopted Kshs. 14,419 as the Claimant's monthly salary based on his payslips, the Respondent having produced no documentary evidence of the lower figure claimed.

Reasoning

The Claimant produced payslips showing gross pay varying with hours worked. The Respondent asserted a minimum salary of Kshs. 6,773.40 plus house allowance but provided no conclusive documentary proof. Sections 10 and 20 of the Employment Act place record-keeping obligations on employers, and in the absence of such records the Court adopts the employee's particulars.

p. 2
04

Entitlement to leave and gratuity

Holding

The Claimant was awarded prorata leave at 1.75 days per completed month under Section 28(1)(b) but was denied service gratuity as an NSSF contributor.

Reasoning

Leave accrues at 1.75 days per completed month of service under Section 28(1)(b) of the Employment Act, computed for 7 months of service. On gratuity, the payslips showed the Claimant was contributing to the National Social Security Fund, disqualifying him from service gratuity.

p. 3

Legal principles established

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  • Even in cases of summary dismissal, the employee retains the right to be heard; there is no summary disciplinary procedure.
  • Substantive justification for termination does not excuse the employer's duty to afford procedural fairness.
  • In the absence of employer records required under Sections 10 and 20 of the Employment Act, the Court will adopt the salary particulars provided by the employee.

Court orders

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  1. 1.Respondent to pay two months' salary in compensation for unfair termination of Kshs. 28,838
  2. 2.Respondent to pay one month's salary in lieu of notice of Kshs. 14,419
  3. 3.Respondent to pay prorata leave at 1.75 days for 7 months of service of Kshs. 5,888
  4. 4.Respondent to issue the Claimant with a Certificate of Service
  5. 5.Each party to bear their own costs

Authorities

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Legislation

  • Employment Act, 2007Section 20
  • Employment Act, 2007Section 10
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44(4)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 42(1)
  • Employment Act, 2007Section 28(1)(b)
  • Employment Act, 2007Section 44(3)

Cases cited (1)

  • Anne Atieno Sadieda Vs Lavage Laundrette & Drycleaners
    (2011 eKLR)
Jurisdiction invoked
Industrial Court of Kenya jurisdiction under the Employment Act, 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "EVANS MOGUTE NYAUNDI V CHINA ROAD AND BRIDGE CORPORATION (K) LIMITED [2013] KEELRC 357 (KLR)", Case Analysis (2013). Cause 1082 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/357/eng@2013-05-13

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