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ELRCPartially AllowedNot stated in judgment· [2014] KEELRC 840 (KLR)

Benard Mudiri Chanzu v Rift Valley Railways Kenya Limited [2014] KEELRC 840 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
7 March 2014
2,023 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 train guard employed by the respondent from 1.11.2006 to 23.08.2012 at a monthly gross pay of Kshs.37,798.00, sued for unfair dismissal arising from an accident on 29/30.06.2012 in which his train, after repeated unexplained shutdowns of a defective locomotive, rolled backwards and capsized. He claimed notice pay, provident fund, compensation under section 49(1)(c), and 20 years' lost future earnings. The respondent alleged he failed to secure the train adequately, an act of gross misconduct, and dismissed him after a show cause letter and an investigative inquiry. The inquiry report attributed the accident to governor tripping and possibly the driver's failure to engage the ODBV, noted the locomotive lacked data recorders, recorded that the claimant had been on duty over 20 continuous hours and likely fatigued, and recommended crew training and monitoring rather than discipline. The court framed two issues: whether the dismissal was unfair, and the remedies payable. It held the primary causes of the accident were the defective locomotive and the ODBV issue, beyond the claimant's duties; that he was likely fatigued; and that the reason for termination was not valid. Further, the claimant was not accorded the hearing promised in the show cause letter as envisaged in section 41 of the Employment Act. The termination was therefore unfair in substance and procedure. The court awarded maximum 12 months' gross salary under section 49(1)(c) and one month's pay under section 35(1)(c), but refused three months' notice pay and the 20-year future earnings claim. Judgment was entered for the claimant for a declaration of unfair termination and Kshs.491,394.00, with costs to the claimant.

Key legal issues

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01

Validity of the reason for termination

Holding

The accident's primary causes were the defective locomotive and the alleged failure to engage the ODBV, which were beyond the claimant's scope of duties; the reason for termination was not valid

Reasoning

The court found that the locomotive shut down repeatedly due to governor tripping, and that without ODBV engagement the necessary pressure escaped so the claimant could not engage the wagon hand brakes. The inquiry report attributed the accident to a locomotive malfunction and recommended training and monitoring of crew, including on fatigue, since the claimant had been on duty over 20 continuous hours. These causes were not attributable to the claimant's failures.

p. 3
02

Procedural fairness under section 41

Holding

The termination was procedurally unfair because the claimant was not accorded the hearing promised in the show cause letter

Reasoning

The show cause letter invited the claimant to appear before the disciplinary committee to provide further evidence, and the claimant requested to appear with a colleague or union representative. Despite this, he was dismissed without the promised hearing, contrary to section 41 of the Employment Act, 2007, rendering the dismissal procedurally unfair.

p. 3
03

Compensation under section 49(1)(c)

Holding

Maximum compensation of 12 months' gross salary awarded, considering the claimant's long service, training, years to retirement and the disproportionate dismissal

Reasoning

The claimant had served over 6 years, trained and improved himself for over 18 years, and had years left to retirement. The inquiry findings and recommendations supported that dismissal was grossly disproportionate. The court therefore awarded 12 months' gross salary of Kshs.37,798.00 per month under section 49(1)(c).

p. 3
04

20 years' future earnings claim

Holding

Refused; the reasonable expectation of continued employment is a discretionary factor under section 49(4)(f), not a separate head of damages

Reasoning

The court held that section 49(4)(f) requires the court to consider the employee's reasonable expectation as to the length of continued employment when exercising the section 49(1)(c) discretion, not to award pay for those years. Having already considered the 20-year expectation and awarded maximum 12 months' salary, the separate claim for 20 years' earnings failed.

p. 4

Legal principles established

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  • A termination is unfair where the reason for termination is not valid and the employee is not accorded the hearing promised and envisaged under section 41 of the Employment Act
  • Section 49(4)(f) of the Employment Act allows the court to consider reasonable expectation of continued employment as a factor in the discretion under section 49(1)(c), not as an entitlement to future earnings

Court orders

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  1. 1.A declaration that the termination of the claimant's employment by the respondent was unfair
  2. 2.The respondent to pay the claimant Kshs.491,394.00 by 1.4.2014, failing interest at court rates from the date of judgment till full payment
  3. 3.The respondent to pay costs of the suit

Authorities

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Legislation

  • Employment Act, 2007section 49(1)(c)
  • Employment Act, 2007section 49(4)(f)
  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 41
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act, 2007

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, "Benard Mudiri Chanzu v Rift Valley Railways Kenya Limited [2014] KEELRC 840 (KLR)", Case Analysis (2014). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/840/eng@2014-03-07

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