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ELRCPartially AllowedCivil Suit No. 715 of 2006 (originally High Court, transferred to Employment and Labour Relations Court)· [2014] KEELRC 9 (KLR)

Michael Munyi v Hotel Intercontinental Nairobi [2014] KEELRC 9 (KLR)

Employment and Labour Relations Court
9 May 2014
MNMathews N. Nduma
3,721 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 1990 and promoted to Purchasing Manager in 2005, was summarily dismissed on 10th January 2006 following the purchase of two Miniset valves found to be defective. The Respondent relied on a statement by the supplier, John Gitonga Thuo, alleging he had given the Claimant money to secure orders. The Claimant sued for unlawful dismissal, notice pay, and overtime dating from 1994, after the suit was transferred from the High Court. The supplier testified that he had been arrested and detained at Central Police Station and forced under duress to fabricate the statement implicating the Claimant, which he later recanted by affidavit. The Claimant's immediate supervisor confirmed he had authorised the purchase and that returning non-conforming goods was normal practice. The Respondent's witness, who joined in 2010, could not refute the Claimant's case and admitted no notice to show cause was issued and no charges were brought. Applying Sections 43(1), 45(1) and 47(5) of the Employment Act, the court held the dismissal was both substantively and procedurally unfair, the reason for dismissal being false and maliciously orchestrated. The court awarded maximum compensation of twelve months' gross salary (Kshs.975,000), one month's salary in lieu of notice (Kshs.81,250), and overtime for two hours per day worked, limited to the six-year limitation period and excluding the managerial period, with quantum to be computed and filed within fourteen days. The Respondent was ordered to pay the costs of the suit.

Key legal issues

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01

Validity of reason for dismissal

Holding

The dismissal was founded on a false statement obtained under duress from a supplier; the reason was not valid and the dismissal was substantively unfair under Section 45(1) of the Employment Act

Reasoning

The Claimant, a 15-year employee with an excellent record, purchased two valves which were found defective on inspection by the Assistant Chief Engineer. Returning non-conforming goods was normal practice. The supplier recanted the statement implicating the Claimant, evidencing it was fabricated under police duress orchestrated by the Respondent's security. The Respondent failed to rebut the prima facie case.

p. 7
02

Procedural fairness of the dismissal

Holding

The dismissal was procedurally unfair: the Claimant was neither charged nor given a notice to show cause, and his exculpatory statements were ignored

Reasoning

The Claimant was interrogated by security and dismissed summarily without a hearing. The court found that the failure to accord him an opportunity to be heard, coupled with reliance on a fabricated statement, violated the fair-hearing requirements attaching to termination of employment.

p. 7
03

Overtime claim and limitation

Holding

Overtime payable for two hours per day worked, but only for the six years preceding suit and excluding the managerial period

Reasoning

The Respondent failed to produce clocking records despite a notice to produce, warranting an adverse inference. However, claims under the contract of service are limited to six years under Cap 22, and the Claimant conceded he was not entitled to overtime as a manager.

p. 8

Legal principles established

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  • In a claim arising out of termination, the employer bears the burden of proving the reason for termination, failing which the termination is deemed unfair under Section 45
  • Once an employee makes a prima facie case of wrongful dismissal, the burden shifts to the employer to justify the grounds for dismissal

Court orders

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  1. 1.Respondent to pay the Claimant maximum compensation of twelve (12) months gross salary for unlawful and unfair dismissal, Kshs.975,000
  2. 2.Respondent to pay one month salary in lieu of notice, Kshs.81,250
  3. 3.Respondent to pay overtime for two hours per day worked, excluding the period as manager and any period outside six years' limitation from 6th July 2006, with quantum to be computed by the Claimant and filed within 14 days for the Court to award accordingly
  4. 4.Respondent to pay the costs of the suit

Authorities

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Legislation

  • Employment ActSection 43(1)
  • Employment ActSection 45(1)
  • Employment ActSection 47(5)
  • Limitation of Actions ActCap 22 (six-year limitation)
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court over a claim for unlawful dismissal (suit transferred from the High Court)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Michael Munyi v Hotel Intercontinental Nairobi [2014] KEELRC 9 (KLR)", Case Analysis (2014). Civil Suit No. 715 of 2006 (originally High Court, transferred to Employment and Labour Relations Court). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/9/eng@2014-05-19

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