Godfrey M Mae v Equity Bank Limited [2014] KEELRC 943 (KLR)
The bottom line
#A Kenyan court ruled Equity Bank unfairly fired an employee because it investigated him but never gave him a chance to respond before dismissal.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of the summary dismissal
Dismissal was procedurally unfair as no show cause letter was issued and no hearing or consideration of representations occurred
The Respondent's HR Manual required a written show cause letter and a detailed inquiry. The Claimant was only interviewed by an investigator gathering facts, then summoned to Nairobi and handed a dismissal letter. The investigation could not replace the section 41 process. Appeals went unanswered. The court found both the statutory and internal procedural minimums were breached.
Whether the court needed to determine substantive fairness of the reasons for dismissal
Not necessary to determine since dismissal was already procedurally unfair
Section 45(2)(c) renders a termination unfair if the employer fails to prove it followed fair procedure. Having found procedural unfairness, the court did not need to consider whether the reasons (gross negligence causing loss of Kshs 1,232,000/-) were valid and fair.
Reliance on pre-2007 Employment Act authority (Gakonyo)
Distinguished as decided under the repealed Employment Act (cap 226)
The respondent relied on Gakonyo to argue no termination notice was required for summary dismissal on gross misconduct. The court held that decision was made under the repealed Act under which an employer could dismiss for any reason with notice pay; the 2007 Act fundamentally changed the legal relationship.
Quantum of remedies
Awards computed under sections 28, 49(1)(b) and 49(4) of the Employment Act and the contract
Unpaid July 2011 wages were prorated for days worked up to 22 July 2011; one month accrued leave, contractual leave allowance of Kshs 3,000/- and one month pay in lieu of notice per the contract were awarded; six months' gross wages (Kshs 501,600/-) were awarded as compensation considering the claimant's six years of service and alternative employment.
Legal principles established
#- Burden of proving unfair termination rests on the employee while the employer bears the burden of justifying the grounds for termination
- Procedural fairness under section 41 requires the employer to inform the employee of the charges, give an opportunity to prepare and be heard, and hear and consider representations before dismissal
- An employer's internal investigation cannot substitute the disciplinary process contemplated by section 41
- The Employment Act, 2007 changed the pre-2007 common-law position that an employer could dismiss for any reason provided notice pay was given
- Internal HR manual procedures supplement, and do not replace, the statutory minimums in section 41
Court orders
#- 1.Declaration that the summary dismissal was unfair
- 2.Award of unpaid salary for July 2011 of Kshs 70,738/-
- 3.Award of one month accrued leave of Kshs 83,600/-
- 4.Award of leave allowance of Kshs 3,000/-
- 5.Award of one month pay in lieu of notice of Kshs 83,600/-
- 6.Award of six months gross wages as compensation for unfair termination of Kshs 501,600/- (total Kshs 742,538/-)
- 7.Respondent ordered to issue the Claimant with a Certificate of service
- Jurisdiction invoked
- Employment Act, 2007 (ss. 41, 43, 45, 47(5), 49) – first-instance employment claim
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (2)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Anne Wino Misumi Gumbi v Youth Enterprise Development Fund Board [2018] KEELRC 38 (KLR)[2018] KEELRC 38 (KLR)20 Dec 2018
- Agnes Kavata Mbiti v Housing Finance Company Limited [2017] KEELRC 287[2017] KEELRC 287 (KLR)27 Jul 2017
Cite this brief
#Cite this brief
Caselaw, "Godfrey M Mae v Equity Bank Limited [2014] KEELRC 943 (KLR)", Case Analysis (2014). Cause (Mombasa) – Statement of Claim filed 27 March 2013 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/943/eng@2014-04-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.