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ELRCPartially AllowedMemorandum of Claim dated 19th June 2012 (number not stated in judgment)· [2014] KEELRC 230 (KLR)

Esther Wambui Karango v Palbina Travel & Tours Limited (Cause 1287 of 2012) [2014] KEELRC 230 (KLR)

Industrial Court (Employment and Labour Relations Court)
17 October 2014
2,209 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, a secretary employed by the Respondent on 22nd January 2007 at a monthly salary rising to Kshs.48,572/=, claimed that she was summarily dismissed verbally by the Managing Director, Mr. Nganga, on the evening of 9th March 2012 without reasons, without a dismissal letter, and without prior disciplinary process. She alleged the suggestion that she meet the Managing Director at a hotel to collect the letter was demeaning, and that a cheque of Kshs.107,609/= tendered through the Respondent's advocates was withdrawn after she objected. The Respondent, through its Human Resource officer Alex Mulwa Musembi, asserted the Claimant was habitually late, insubordinate, and had received warning letters and an interdiction letter, and was to attend a disciplinary hearing she declined to attend. The Court found the Claimant credible and the Respondent's witness contradictory; no show cause letter, notice of disciplinary hearing or minutes were produced; the warning and interdiction letters bore no acknowledgment of receipt and were held to have been tailored for the litigation. The Managing Director did not testify. Holding that the dismissal violated Section 45(1) read with Section 45(2)(a) and (c) of the Employment Act, the Court awarded 10 months' salary as compensation (Kshs.485,720/=) plus admitted terminal benefits of Kshs.107,609/=, with interest, a certificate of service within 14 days, and costs of the suit to the Claimant.

Key legal issues

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01

Whether the summary dismissal was for a valid reason and by fair procedure

Holding

The dismissal on 9th March 2012 was without a show cause letter, prior charge, notice of a disciplinary hearing or minutes; the defence evidence was fabricated and contradictory; the dismissal violated Section 45(1) as read with Section 45(2)(a) and (c).

Reasoning

The Court found as a fact that the Claimant was dismissed verbally on the evening of 9th March 2012. No notice of a disciplinary hearing or minutes were produced; the RW1's claim of a hearing on 15th March was deemed patently improbable and false. Warning and interdiction letters were unsigned by the Claimant and the Court accepted they were tailored for the case. The Managing Director did not testify to rebut the allegations.

p. 5
02

Remedies for unfair dismissal under Sections 49 and 50 of the Employment Act

Holding

The Claimant, having served five years, not contributing to her dismissal, and having been treated in a demeaning manner, was awarded 10 months' salary as compensation plus admitted terminal benefits.

Reasoning

Applying Section 49(1)(c) as read with Sections 49(4) and 50, the Court considered the five years of service, the Claimant's non-contribution, the loss of employment without notice, and the indignity of the Managing Director's suggestion of a hotel meeting, awarding 10 months' salary as compensation.

p. 5

Legal principles established

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  • Under Section 47(5) of the Employment Act, an employee who shows the dismissal was not for a valid reason or not effected through fair procedure discharges her burden, and the employer bears the evidential burden of rebuttal.
  • A summary dismissal without a show cause letter, prior charge, notice of disciplinary hearing or minutes of such hearing violates Section 45(1) read with Section 45(2)(a) and (c) of the Employment Act.
  • Warning letters and interdiction letters not acknowledged by signature may be treated as fabricated for purposes of litigation.

Court orders

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  1. 1.Kshs.485,720/= compensation for unlawful and unfair dismissal with interest at Court rates from 9th March 2012 till payment in full
  2. 2.Kshs.107,609/= net terminal benefits payable by the Respondent with interest at Court rates from date of the judgment till payment in full
  3. 3.Costs of the suit to the Claimant
  4. 4.Respondent to provide certificate of service within 14 days from date of judgment

Authorities

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Legislation

  • Employment ActSection 47(5)
  • Employment ActSection 45(1)
  • Employment ActSection 45(2)(a) and (c)
  • Employment ActSection 49(1)(c)
  • Employment ActSection 49(4)
  • Employment ActSection 50
Jurisdiction invoked
Employment Act, 2007 (Sections 45, 47(5), 49 and 50) - first-instance employment 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, "Esther Wambui Karango v Palbina Travel & Tours Limited (Cause 1287 of 2012) [2014] KEELRC 230 (KLR)", Case Analysis (2014). Memorandum of Claim dated 19th June 2012 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/230/eng@2014-10-17

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