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ELRCPartially AllowedCause No. 807 of 2012· [2013] KEELRC 856 (KLR)

Lilian Nyaboe Nyaribo v Wireless Innovations Nairobi Limited [2013] KEELRC 856 (KLR)

Industrial Court of Kenya
2 October 2013
3,069 words in judgment
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The bottom line

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Kenya's employment court ruled that firing an employee without a hearing is unfair, awarding her over Kshs.823,000 plus costs.

What this practically means

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Executive summary

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The claimant, employed as an Administrative Secretary from 1st May 2002, was suspended on 16th July 2009 ostensibly over a delay in the purchase of a billboard for a GSU tender, and on resuming duty was informed of her summary dismissal. No letter of dismissal was ever issued and she was not afforded a hearing. The respondent, through its Business Manager Charles Mutua, contended the termination was for misconduct including attitude and failure to respect the company code, and that terminal dues were paid. The court framed three issues: whether the termination was wrongful, unfair and unlawful; whether the claimant was entitled to relief; and who should bear costs. Applying section 45 of the Employment Act, the court held the employer failed to prove a valid reason and fair procedure. Relying on Article 47 of the Constitution and the Shankar Saklani decision, it held that managerial decisions in the private sector are administrative actions subject to the right to fair administrative action. The claimant was never heard, and the dismissal was accordingly wrongful, unfair and unlawful. The court awarded 12 months' gross salary as damages (Kshs.441,000), severance pay (Kshs.128,625), salary for the suspension month with interest, one month's salary in lieu of notice, unpaid leave (Kshs.180,075) and a certificate of service, totaling Kshs.823,200, and ordered the respondent to bear the costs. Reliefs for salary until retirement and unremitted statutory deductions were not included in the final award.

Key legal issues

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01

Whether the termination of the claimant's employment was wrongful, unfair and unlawful

Holding

The termination was wrongful, unfair and unlawful because the claimant was not afforded a hearing, no valid reason was proved, and no reasons were communicated

Reasoning

The court found the claimant was suspended verbally without reasons and summarily dismissed without being heard, contrary to sections 41 and 45 of the Employment Act. Section 45(2) places the burden on the employer to prove a valid reason and fair procedure, which the respondent failed to discharge. Article 47 of the Constitution on fair administrative action applies to private-sector employment. The respondent was casual and unobservant of the claimant's legal and constitutional rights.

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02

Whether the claimant is entitled to the relief sought

Holding

Yes; the claimant was awarded damages of 12 months' gross salary, severance pay, suspension salary, notice pay, unpaid leave and a certificate of service

Reasoning

Having found the termination unlawful, the court held the claimant entitled to compensation and redress as the hallmark of civil law and fair play. Specific reliefs were enumerated in the final orders, though salary until retirement and unremitted statutory deductions were not included in the award.

p. 6

Legal principles established

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  • An employer bears the burden of proving a valid reason and fair procedure for termination under section 45 of the Employment Act
  • Article 47 of the Constitution on fair administrative action applies to employers in both the public and private sectors
  • Failure to afford an employee a hearing before dismissal contravenes section 41 of the Employment Act and renders the dismissal unfair

Court orders

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  1. 1.12 months gross salary as damages for unlawful and unfair termination amounting to Kshs.441,000/=
  2. 2.Severance pay for each completed year of service amounting to Kshs.128,625
  3. 3.Salary for the month of suspension amounting to Kshs.36,750 plus interest at court rates from August 2009 until payment in full
  4. 4.One month's salary in lieu of notice amounting to Kshs.36,750.00
  5. 5.Certificate of Service to be issued to the claimant
  6. 6.Unpaid leave for the period worked computed as 21/30 x 36,750.00 x 7, total Ksh.180,075.00
  7. 7.Total award of Ksh.823,200.00
  8. 8.Costs of the cause to be borne by the respondent

Authorities

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Legislation

  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 46
  • Employment Act, 2007Section 51
  • Employment Act, 2007Section 10
  • Employment Act, 2007Section 74
  • Constitution of Kenya, 2010Article 47
  • Constitution of Kenya, 2010Article 10

Cases cited (5)

  • Kenneth Njiru Njorani Versus Dodhia Packaging Limited
    Cause No.431 of 2010
  • Shankar Saklani versus DHL Global Forwarding (K) Limited
    [2012] eKLR
  • Samuel Kamau Macharia & Another versus Kenya Commercial Bank and Others
    Nairobi Supreme Court Application No. 2 of 2011 (Unreported)
  • Esther Achieng Juma versus Cooperative Bank of Kenya Ltd
    Petition No.220 of 2012 (unreported)
  • Samson Buluma versus DPL Festive Limited
    (2012) eKLR
Jurisdiction invoked
Employment Act, 2007 (ss. 41, 45) and Article 47 of the Constitution of Kenya, 2010

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, "Lilian Nyaboe Nyaribo v Wireless Innovations Nairobi Limited [2013] KEELRC 856 (KLR)", Case Analysis (2013). Cause No. 807 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/856/eng@2013-10-02

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