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ELRCPartially AllowedCause 1627 of 2011· [2013] KEELRC 464 (KLR)

MERCY W. KINYUA V WESTLIFE CONSTRUCTION COMPANY LTD [2013] KEELRC 464 (KLR)

Industrial Court of Kenya
7 February 2013
1,098 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 that while probationary employees can be dismissed without a hearing, employers must still give notice pay if they deny any chance to respond.

What this practically means

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Executive summary

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The Claimant was employed by the Respondent on 7th February 2011 as Finance Officer at a monthly salary of Kshs. 25,000 and was summarily dismissed on 20th April 2011 while on probation. She blamed the dismissal on the Respondent's failure to meet tender deadlines, specifically the failure to secure a Bid Bond and Manufacturer's Authorisation, and alleged she was given no opportunity to defend herself. She sought a declaration that the termination was unlawful, one month's notice pay, prorata pay and leave, and 12 months' compensation for unfair termination. The Respondent defended the dismissal as summary dismissal for gross misconduct and incompetence under Section 44(4)(c) of the Employment Act and Clause 12 of her contract, contending she failed to perform simple tasks. The court held that because the Claimant was on probation, Section 42(1) of the Employment Act expressly excluded her termination from the Section 41 hearing requirements, so her unfair termination claim failed. However, the court found she had no opportunity to mitigate her case and converted the summary dismissal to a normal termination, awarding one month's pay in lieu of notice, 3.5 days' pay in lieu of leave, and prorata pay for 1st to 20th April 2011. The 12 months' compensation and declaration were not granted. Costs were awarded to the Claimant.

Key legal issues

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01

Whether the summary dismissal of a probationary employee complied with the Employment Act

Holding

Summary dismissal of a probationary employee is excluded from the Section 41 procedural requirements, but the court converted the dismissal to normal termination because the employee was not given a chance to mitigate

Reasoning

Section 44 permits summary dismissal for wilful neglect or careless performance of duty, and the Respondent alleged the Claimant failed to secure a Bid Bond and Manufacturer's Authorisation. However, Section 42(1) excludes probationary contracts from the Section 41 hearing requirements. Despite this, the court exercised discretion to convert the dismissal to normal termination, awarding notice pay, because the Claimant had no opportunity to mitigate her case before dismissal.

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02

Whether the Claimant was entitled to prorata leave and prorata pay

Holding

Yes - prorata leave at 1.75 days per completed month and prorata pay for 1st to 20th April 2011

Reasoning

Having worked at least two months before termination, the Claimant accrued leave under Section 28(b) of the Employment Act. She was also awarded unpaid salary for the period worked in April 2011 up to the date of termination.

p. 3

Legal principles established

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  • The provisions of Section 41 of the Employment Act (right to be heard before termination) do not apply where a termination terminates a probationary contract
  • Even where Section 41 does not apply, an employee denied any opportunity to mitigate before dismissal may have the summary dismissal converted to normal termination with notice pay
  • An employee who has worked for at least two months is entitled to prorata leave at 1.75 days per completed month under Section 28(b) of the Employment Act

Court orders

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  1. 1.Conversion of the Claimant's summary dismissal to a normal termination
  2. 2.One month's pay in lieu of notice
  3. 3.3.5 days' pay in lieu of leave
  4. 4.Prorata pay for the period between 1st April and 20th April 2011
  5. 5.Costs of the case awarded to the Claimant

Authorities

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Legislation

  • Employment Act, 2007Section 44(4)(c)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 42(1)
  • Employment Act, 2007Section 28(b)
  • Employment Act, 2007Section 44(3) and (4)
Jurisdiction invoked
Employment and labour relations dispute referred to the Industrial Court 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, "MERCY W. KINYUA V WESTLIFE CONSTRUCTION COMPANY LTD [2013] KEELRC 464 (KLR)", Case Analysis (2013). Cause 1627 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/464/eng@2013-02-07

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