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ELRCPartially AllowedCause 827 of 2010· [2013] KEELRC 519 (KLR)

JOSEPH OLUOCH OMOLE V CATHOLIC UNIVERSITY OF EASTERN AFRICA [2013] KEELRC 519 (KLR)

Industrial Court of Kenya
23 January 2013
2,144 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 a university unfairly fired a lecturer because it skipped the mandatory disciplinary procedure, awarding him eight months' salary plus dues.

What this practically means

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Executive summary

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The Claimant, a Lecturer at the Catholic University of Eastern Africa, claimed unfair termination of employment and unpaid terminal dues. He was dismissed with immediate effect on 21st May 2010 on grounds of a 'specific and consistent pattern of misconduct', a day after receiving a letter renewing his contract for three years. His dismissal followed a consultative meeting of 18th May 2010 at which he was shown newspaper articles he had authored, including opinion pieces on the Proposed Constitution and Kadhi's Courts that were said to be contrary to Catholic Church doctrines. The matter was heard partly by Madzayo J, and by consent the parties allowed the award to be issued on the documents and recorded proceedings. The Court held that the termination was unfair: the reason stated was misconduct, making the section 41 Employment Act procedure mandatory, but it was not followed; the Respondent also flouted its own Staffing Manual and never documented the verbal warnings it alleged. The Court declined payment of salary for the 37-month unexpired contract period, holding that such an award amounts to specific performance of a contract of service, permissible only in very exceptional circumstances under section 49(4)(d). It declined the claim for lost annual increments as speculative. The Court awarded eight months' salary as compensation, May 2010 salary, three months' salary in lieu of notice, pro-rata leave and leave allowance, earned gratuity up to the date of transition to the Provident Fund, and a Certificate of Service. Costs were awarded to the Claimant.

Key legal issues

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01

Whether the termination of the Claimant's employment was unfair under the Employment Act, 2007

Holding

The termination was unfair; the Respondent failed to follow the mandatory procedure in section 41 and its own Staffing Manual, and could not substantiate the claimed misconduct

Reasoning

The stated reason for termination was misconduct, making the section 41 procedure mandatory: the employer must explain the reasons to the employee and hear representations before termination. The consultative meeting minutes showed no proper process, warnings were never documented, and the Respondent flouted its own Staff Manual by dispensing with a disciplinary committee. Even where summary dismissal is justified, due process must be observed. On the evidence, the procedure was not followed, so the termination was unfair under section 45(2).

p. 4
02

Whether the Claimant was entitled to salary for the unexpired period of his contract

Holding

The prayer was declined because granting it would amount to an order for specific performance of a contract of service, which section 49(4)(d) restricts to very exceptional circumstances

Reasoning

Counsel for the Claimant relied on the Court of Appeal decision in Gad David Ojuando v Maseno University, which ordered payment of salary arrears to retirement age. The Court held that payment for the unexpired term of a contract effectively orders specific performance of employment, which the Employment Act permits only in very exceptional circumstances. On the facts, no such circumstances existed, so the prayer failed.

p. 4
03

Whether the Claimant was entitled to gratuity despite the Respondent's assertion that gratuity had been replaced by a Provident Fund

Holding

The Respondent was directed to pay all earned gratuity up to the date of transition, as it failed to prove when the transition occurred

Reasoning

The payslip showed the Claimant was a contributing member of the Provident Fund, but no evidence established the actual date of transition from gratuity to Provident Fund. The employer, bearing the evidential burden on this head, could not prove the transition date, so the Claimant was entitled to all gratuity earned as at the date of the transition.

p. 4

Legal principles established

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  • An employer bears the burden of proving the reason for termination, failing which the termination is deemed unfair under section 45
  • The due process requirements of section 41 of the Employment Act apply even where summary dismissal is warranted; there is no summary disciplinary procedure
  • Payment of salary for the unexpired period of a contract of employment amounts to specific performance, which is not granted except in very exceptional circumstances per section 49(4)(d) of the Employment Act
  • An employer must follow its own internal disciplinary procedures

Court orders

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  1. 1.Award of the equivalent of 8 months' salary as compensation for unfair termination of employment
  2. 2.Payment of salary for the month of May 2010
  3. 3.Payment of 3 months' salary in lieu of notice as per Respondent's Terms and Conditions of Service
  4. 4.Payment of pro-rata leave and leave allowance for the period between September 2009 and May 2010
  5. 5.The Respondent directed to pay the Claimant all earned gratuity as at the date of transition from Gratuity to Provident Fund
  6. 6.The Respondent directed to issue the Claimant with a Certificate of Service
  7. 7.Claim for salary for the unexpired period of the contract declined
  8. 8.Claim for lost annual increments declined
  9. 9.The Respondent to bear the costs of the case

Authorities

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Legislation

  • Employment ActSection 43(1)
  • Employment ActSection 45(2)
  • Employment ActSection 41(1) and (2)
  • Employment ActSection 49(4)(d)
  • Retirement Benefits Actgoverning the Provident Fund

Cases cited (1)

  • Gad David Ojuando Vs. Maseno University and 2 Others
    Kisumu Civil Appeal No. 336 of 2005
Jurisdiction invoked
Industrial Court of Kenya (Industrial Court Act, 2011) as the forum for employment and labour relations causes

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, "JOSEPH OLUOCH OMOLE V CATHOLIC UNIVERSITY OF EASTERN AFRICA [2013] KEELRC 519 (KLR)", Case Analysis (2013). Cause 827 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/519/eng@2013-01-23

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