Chrisantus Barasa Munyekenye v Kenya Yuncheng Making Limited [2014] KEELRC 949 (KLR)
The bottom line
#A Kenyan employer who sacks a worker without giving reasons and a hearing breaches the Employment Act, even if terminal dues were accepted.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination was unfair
Termination was unfair because the Claimant was not notified of reasons nor given a hearing as required by Section 41 of the Employment Act
Section 41 of the Employment Act requires notification of reasons and a hearing. The Claimant testified he was simply issued a termination letter without reasons or a chance to defend himself, and the Respondent did not contest this allegation. Non-compliance with Section 41 rendered the termination unfair.
Whether acceptance of terminal dues and delay barred the claim
No; acceptance of payment does not waive the unfair termination claim, and filing within the limitation period defeats the laches argument
The Respondent argued the Claimant accepted terminal dues without protest and delayed over two years before claiming. The court rejected both points: acceptance of payment does not compromise the right to claim, and the suit having been filed within the limitation period, no laches arose.
Severance pay on redundancy
Termination for lack of work amounts to redundancy, entitling the Claimant to 15 days' salary per completed year under Section 40
RW1 testified the Claimant's termination was due to technology, with machines modified so that two of seven employees were excess. The court held such termination falls within the definition of redundancy and awarded severance pay of 15 days' salary per completed year, being Kshs. 7,500 for one year.
Quantum of compensation for unfair termination
Two months' salary awarded instead of the 12 months sought, considering the short service of 14 months
Although unfair termination entitled the Claimant to compensation under Section 49 of the Employment Act, the court held that full 12 months' compensation would be excessive given only 14 months of service. Weighing all circumstances, two months' salary (Kshs. 26,000) was deemed reasonable.
Legal principles established
#- Failure to notify an employee of reasons for termination and grant a hearing contravenes Section 41 of the Employment Act and renders the termination unfair
- Acceptance of terminal dues does not compromise an employee's right to claim unfair termination
Court orders
#- 1.Award of Kshs. 4,211.54 being balance of annual leave
- 2.Award of Kshs. 7,500 being severance pay for one year worked
- 3.Award of Kshs. 26,000 being two months' salary as compensation for unfair termination
- 4.Claimant awarded costs, with instruction fees assessed at 50% of scale fees
- 5.Interest at court rates payable after 30 days if the decretal sum is unpaid
- 6.Dismissal of claims for travelling allowance, unpaid salary and public holidays
- Jurisdiction invoked
- Employment and labour relations jurisdiction under the Employment Act (Cap 226); specific court not stated in judgment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Chrisantus Barasa Munyekenye v Kenya Yuncheng Making Limited [2014] KEELRC 949 (KLR)", Case Analysis (2014). Cause No 747 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/949/eng@2014-03-12
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.