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ELRCPartially AllowedCause No 1270 of 2010· [2014] KEELRC 1123 (KLR)

Kudheiha Workers v Muthaiga Country Club [2014] KEELRC 1123 (KLR)

Industrial Court of Kenya at Nairobi
9 July 2014
1,886 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An Kenyan court ruled that an employer who sacks staff over an alleged strike must actually prove it, or the dismissal is unfair and compensation follows.

What this practically means

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Executive summary

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The Industrial Court of Kenya at Nairobi, presided over by Linnet Ndolo, Judge, determined a claim by Kudheiha Workers on behalf of 19 grievants summarily dismissed by Muthaiga Country Club in late 2009. The 1st-17th Grievants were dismissed for allegedly participating in an illegal strike on 5th December 2009; the 18th for negligently placing drinks on an unoccupied table; and the 19th for negligent driving damaging a gate and reporting to work intoxicated. The Court framed three issues: validity of reason, procedural fairness, and entitlement to reliefs. On validity, it found the Respondent failed to prove the strike allegation against the 1st-17th Grievants: the managers who identified them were not called to testify, the Respondent did not rebut the Claimant's detailed account of each Grievant's activities on the day, and the selection criteria were unexplained. On procedure, the Court was satisfied all disciplinary hearings complied with Section 41 of the Employment Act, with a union representative participating. The 19th Grievant's admission of causing damage established a valid reason for his dismissal, and his claim was dismissed. The 18th Grievant's claim failed for lack of evidence. The Court awarded the 1st-17th Grievants notice pay per the applicable Collective Bargaining Agreement plus individualised compensation of one to twelve months' pay for unfair termination, with amounts to be agreed by counsel within 21 days. Reinstatement was not granted. Each party was ordered to bear its own costs.

Key legal issues

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01

Validity of reason for dismissal of the 1st-17th Grievants (alleged strike)

Holding

The Respondent failed to establish a valid reason for the dismissal of the 1st-17th Grievants

Reasoning

The managers who allegedly identified the Grievants as refusing to resume work were not called to testify. The Respondent did not rebut the Claimant's detailed account of each Grievant's activities on 5th December 2009. The Court could not discern the criteria used to single out the 17 employees, so the allegation of participation in an illegal strike was not proved.

p. 3
02

Procedural fairness of the disciplinary process

Holding

The 1st-17th Grievants and the 19th Grievant were given an opportunity to be heard in accordance with Section 41 of the Employment Act

Reasoning

Evidence from both the Respondent's Human Resource Officer and the 12th Grievant confirmed that a union representative took part in the disciplinary proceedings for the 1st-17th Grievants. The 19th Grievant was heard and it was agreed the damage he caused would be assessed for him to make good. The procedure was therefore fair even though the substantive reason failed.

p. 4
03

Validity of dismissal of the 19th Grievant for negligent driving and reporting to work intoxicated

Holding

The Respondent had a valid reason to terminate the 19th Grievant's employment

Reasoning

The Grievant admitted driving a motor vehicle within the premises and causing damage to one of the Respondent's gates. The admission established the misconduct, and since he was accorded a fair hearing, his dismissal was upheld and his claim dismissed.

p. 3

Legal principles established

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  • The burden is on the employer to prove the reasons for termination, failing which the termination is deemed unfair

Court orders

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  1. 1.Each of the 1st-17th Grievants shall be paid notice in accordance with the Collective Bargaining Agreement obtaining at the date of dismissal
  2. 2.Each of the 1st-17th Grievants shall be paid compensation for unfair termination ranging from 1 to 12 months' pay as individually awarded
  3. 3.The amounts payable to each Grievant shall be agreed upon by Counsels for the parties within 21 days from the date of the award
  4. 4.Each party will bear their own costs

Authorities

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Legislation

  • Employment Act, 2007Section 43(1)
  • Employment Act, 2007Section 44(4)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 12
  • Employment Act, 2007Section 45
Jurisdiction invoked
Original jurisdiction of the Industrial Court over employment and labour relations disputes

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, "Kudheiha Workers v Muthaiga Country Club [2014] KEELRC 1123 (KLR)", Case Analysis (2014). Cause No 1270 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1123/eng@2014-07-09

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