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ELRCPartially AllowedCause No 197 of 2013· [2013] KEELRC 953 (KLR)

Anthony Kiragu Ngang’a v Taidy’s Restaurant [2013] KEELRC 953 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
20 December 2013
1,223 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan restaurant was ordered to pay a waiter Kshs.35,000 because he was fired without notice or a hearing.

What this practically means

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Executive summary

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The claimant, employed as a waiter from January 2006 and later promoted to barman, sued Taidy's Restaurant claiming payment for a 14-day unpaid suspension, annual leave, notice pay, overtime, house allowance, underpayment and six months' wages as compensation for wrongful termination, totalling Kshs.245,326.30. He was suspended by letter dated 14.03.2012 over stock management irregularities, resumed duty, and was terminated on 1.05.2012 for allegedly failing to remit Kshs.1,290.00 cashed-out bills. He appealed internally without success and reported to the Labour Office. The respondent's General Manager admitted the shortfall was deducted from the claimant's salary and that such deductions were normal, though he contradicted himself in re-examination. The court framed a single issue: whether the claimant was entitled to the prayers made. It found the claims for annual leave, overtime, house allowance and underpayment not established, and rejected the claim for payment for the suspension period as it flowed from a concluded disciplinary action not appealed against. However, it held the termination was effected without notice or hearing contrary to section 41 of the Employment Act, 2007, and that the reasons were not valid given the certificate of service describing the claimant as of impeccable character. The court awarded Kshs.5,000.00 in lieu of notice and Kshs.30,000.00 as six months' compensation, total Kshs.35,000.00, with 50% of the costs of the suit, payable by 1.2.2013, failing which interest at court rates would run from the date of judgment.

Key legal issues

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01

Procedural fairness in termination

Holding

The termination was unfair because the claimant was neither given notice nor heard before termination

Reasoning

Section 41 of the Employment Act, 2007 requires notice and a hearing before termination. The claimant was dismissed on allegations of cashing out bills not remitted to the cash box without any notice or hearing. The court therefore awarded six months' salary as compensation, noting also that the reasons were not valid given the certificate of service praising the claimant's impeccable character.

p. 3
02

Notice pay

Holding

Claimant entitled to one month's pay in lieu of notice (Kshs.5,000.00)

Reasoning

The termination letter of 1.05.2012 was delivered without any prior termination notice. The court therefore held the claimant entitled to his last gross pay of Kshs.5,000.00 as pay in lieu of termination notice.

p. 3
03

Validity of reasons for termination

Holding

The reasons for termination were not valid

Reasoning

The court relied on the certificate of service describing the claimant as hardworking, of impeccable character and leaving on his own accord, and on the respondent's witness admission that the alleged Kshs.1,290.00 shortfall had been deducted from the claimant's salary and was normal, which contradicted his re-examination evidence.

p. 3
04

Claims for leave, overtime, house allowance and underpayment

Holding

Failed for lack of establishment

Reasoning

These claims were not raised while the claimant was in employment, and the respondent demonstrated through exhibit FK1 that the claimant took his due leave days. The claimant therefore failed to discharge the burden of establishing these heads of claim.

p. 3

Legal principles established

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  • An employer must accord an employee notice and a hearing before termination as envisaged in section 41 of the Employment Act, 2007, failing which compensation may be awarded
  • Termination without notice entitles the employee to pay in lieu of notice

Court orders

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  1. 1.The respondent to pay the claimant Kshs.35,000.00 by 1.2.2013, in default, interest to be payable at court rates from the date of the judgment till full payment
  2. 2.The respondent to pay 50% of the costs of the suit

Authorities

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Legislation

  • Employment Actsection 41
Jurisdiction invoked
Employment and labour relations dispute under the Employment Act, 2007 (first-instance industrial court claim)

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, "Anthony Kiragu Ngang’a v Taidy’s Restaurant [2013] KEELRC 953 (KLR)", Case Analysis (2013). Cause No 197 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/953/eng@2013-12-20

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