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ELRCPartially AllowedCause No 299 of 2011· [2013] KEELRC 830 (KLR)

Hezekiel Oira v Kenya Broadcasting Corporation & another [2013] KEELRC 830 (KLR)

Industrial Court of Kenya
4 October 2013
2,080 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 KBC unfairly fired its Corporation Secretary without a hearing and awarded him over Kshs.5.7 million.

What this practically means

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Executive summary

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Hezekiel Oira, formerly Corporation Secretary of the Kenya Broadcasting Corporation, claimed that his suspension on 23rd June 2010 and termination on 6th September 2010 breached the law and KBC's Code of Regulations (2009), arguing he was never given an opportunity to defend himself and that the Board lacked capacity to terminate a contract to which it was not a party. He sought notice pay, travel allowance, unutilised leave, acting allowances, salary for the suspension period, damages for unlawful termination, and relied on his acquittal by the Anti-Corruption Court on 16th August 2012. The Respondents maintained the termination was justified by monetary and reputational loss from his mishandling of the 2010 FIFA World Cup broadcast rights, and that notice pay was withheld pending clearance. The Court held that acquittal in a criminal case does not automatically immunise an employee from discipline, but found no evidence of any hearing before suspension or termination, breaching Sections 41 and 45 of the Employment Act, 2007 and the Code of Regulations. The termination was declared unfair and the Claimant awarded 12 months' salary compensation, notice pay, salary for the suspension period, travel allowance, 35 days' leave pay, MD acting allowances limited to figures admitted by the Respondents, and a domestic allowance, totalling Kshs.5,742,410. Reinstatement, raised only in submissions, was refused; acting allowance claims without evidential support were rejected. The Respondents were ordered to pay the costs of the case.

Key legal issues

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01

Whether the termination of the Claimant's employment was lawful and fair

Holding

The termination was unfair under Section 45 of the Employment Act, 2007 because the Claimant was given no opportunity to defend himself before suspension or termination, contrary to the law and the Respondent's Code of Regulations.

Reasoning

Section 45(2) of the Employment Act places the burden on the employer to prove a valid and fair reason and a fair procedure. The Claimant was suspended while out of the country, never learned the outcome of investigations, and his termination letter was delivered to his house girl. The Respondents' own witness did not know whether any hearing was held or whether the Code of Regulations' disciplinary procedures were followed. There was therefore no evidence of any hearing, breaching Section 41 and the Code of Regulations, and rendering the termination unfair.

p. 4
02

Whether the Claimant's acquittal in the criminal proceedings vitiated the termination

Holding

No. Acquittal in a criminal case does not automatically immunise an employee from disciplinary action; the two processes are distinct with different standards of proof, and the sequencing of the termination before the criminal proceedings did not compromise the disciplinary process.

Reasoning

Applying its earlier decision in David O. Owino v Kenya Institute of Special Education, the Court held that criminal trials and internal disciplinary proceedings are distinct processes. The termination preceded the criminal proceedings, so the sequencing did not by itself taint the disciplinary process. The Court thus examined only the disciplinary procedure actually adopted by the Respondents, finding it wanting for want of a hearing.

p. 3
03

Quantum of the award

Holding

The Claimant was awarded 12 months' salary as compensation for unfair termination, one month's notice pay, salary for the suspension period, travel allowance, 35 days' leave pay, MD acting allowances (limited to figures admitted by the Respondents), and a domestic allowance, totalling Kshs.5,742,410.

Reasoning

Salary was computed from the May 2010 payslip discounted by Kshs.17,100 Mtangazaji dividends, adopting Kshs.322,335 as monthly salary. Acting allowance claims for Deputy Managing Director failed for want of evidence, and the Managing Director acting allowance was limited to figures admitted by the Respondents since reliance on a third party's contract was unjustified. Reinstatement was refused as not merited and improperly raised in submissions.

p. 5

Legal principles established

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  • Acquittal in a criminal case does not automatically render an employee immune to disciplinary action by an employer
  • A fair termination requires both substantive justification and procedural fairness
  • An employee suspended pending investigation has a legitimate expectation of being heard before termination is considered

Court orders

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  1. 1.12 months' salary for unfair termination (Kshs.3,868,020)
  2. 2.One month's salary in lieu of notice (Kshs.322,335)
  3. 3.Salary from 23rd June 2010 to 6th September 2010, 71 days (Kshs.762,860)
  4. 4.2 months' basic salary for travel allowance (Kshs.294,670)
  5. 5.Allowances for acting in the position of MD (Kshs.64,467)
  6. 6.Domestic allowance (Kshs.54,000)
  7. 7.Pay in lieu of 35 leave days (Kshs.376,058.30)
  8. 8.Total award of Kshs.5,742,410
  9. 9.The Respondents to pay the costs of the case

Authorities

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Legislation

  • Employment ActSection 45(2)
  • Employment ActSection 41
  • Criminal Procedure CodeSection 215
  • Kenya Broadcasting Corporation Code of RegulationsSection K.7.13
  • Kenya Broadcasting Corporation Code of RegulationsSection K.8
  • Kenya Broadcasting Corporation Code of RegulationsSection K.9

Cases cited (3)

  • David O. Owino Vs Kenya Institute of Special Education
    Industrial Court Cause No 453 of 2012
  • Walter Ogal Anuro Vs Teachers Service Commission
    [2013]eKLR
  • Alphonce Machanga Mwachanya Vs Operation 680 Limited
    [2013]eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction under Article 162(2) of the Constitution (Industrial Court of Kenya at Nairobi)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Hezekiel Oira v Kenya Broadcasting Corporation & another [2013] KEELRC 830 (KLR)", Case Analysis (2013). Cause No 299 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/830/eng@2013-10-04

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