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ELRCPartially AllowedCause No 214 of 2013· [2014] KEELRC 1210 (KLR)

Edward Juma Masakha v National Environment Management Authority [2014] KEELRC 1210 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
31 July 2014
2,490 words in judgment
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The bottom line

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Kenya's Employment Court ruled that a NEMA director was unfairly sacked for trusting his deputy, and ordered his full reinstatement with back pay.

What this practically means

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Executive summary

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The claimant, employed by the respondent (NEMA) since 2003 and promoted to Provincial Director of Environment in 2009, was responsible for issuing Environmental Impact Assessment licences for low and medium risk projects only. While attending a workshop in Eldoret on 15.3.2012, he signed two blank licences at his deputy Kopejo's request for an urgent project. One was processed as a high risk licence for a project in the Maasai Mara Game Reserve, outside the claimant's authority, with licence fees belatedly and irregularly paid through an intermediary. Following a disciplinary advisory committee which found the claimant careless but recommended only transfer and a warning, the Director General overruled the committee and summarily dismissed him by letter dated 7.12.2012; the board upheld the dismissal on appeal while reinstating Kopejo with a warning and demotion. The court found due process under section 41 of the Employment Act was observed, but that there was no valid reason for dismissal under section 43: the claimant was entitled to trust his deputy, and all evidence showed Kopejo designed and executed the irregular issuance. The board's deviation from the committee's findings without new material, and the disproportionate retention of Kopejo, offended the proportionality principle in section 3 of the Industrial Court Act, 2012. Judgment was entered for the claimant: reinstatement with full pay from 7.12.2012, release of withheld salary, computation and payment timelines with interest on default, reporting for deployment, and costs of the suit to the claimant.

Key legal issues

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01

Whether there was a valid reason for the summary dismissal under section 43 of the Employment Act, 2007

Holding

There was no valid reason; the claimant's trusting his deputy was not misconduct, and the deputy Kopejo designed and executed the irregular issuance of the high risk licence.

Reasoning

The claimant signed blank licences at his deputy's request for an urgent project, which was within his authority. All evidence showed Kopejo processed the high risk licence, orchestrated the belated fee payment, and covered up the transaction. The disciplinary committee itself found Kopejo bore higher responsibility. Absent evidence of intent to issue the licence irregularly or fraudulently, the dismissal was unfair.

p. 4
02

Whether the procedural requirements of section 41 of the Employment Act were met

Holding

Yes; the claimant received notice and hearing before the disciplinary advisory committee.

Reasoning

The claimant was served a show cause notice, responded in writing, and was heard verbally before the committee. Due process was observed throughout the administrative disciplinary proceedings; the unfairness lay in the substantive decision, not the procedure.

p. 3
03

Whether the board's decision on appeal was proportional

Holding

No; upholding the claimant's dismissal while retaining Kopejo, the key culprit, was not proportional, contrary to section 3 of the Industrial Court Act, 2012.

Reasoning

The board deviated from the committee's findings without new material, and by referring the matter for further investigation suggested it lacked sufficient material to decide the appeal. Imposing graver punishment on the supervisor than on the officer who executed the irregularity failed the proportionality principle.

p. 4
04

Whether the claimant was entitled to the remedies prayed for

Holding

Yes; reinstatement with full pay from 7.12.2012, including release of withheld salary, was granted.

Reasoning

The termination was unfair; the claimant was a public officer with a clean record since 1989, the board acted without proportionality, and reinstatement was appropriate in the circumstances rather than the alternative monetary damages claimed.

p. 4

Legal principles established

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  • It would be unfair labour practice for an employer to terminate a manager or senior officer on account of an obvious breach of trust by a subordinate officer, because managers are entitled to trust those who work under them.
  • The principle of proportionality requires an employer to impose punishment corresponding to the gravity of each employee's liability for the misconduct.

Court orders

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  1. 1.Reinstatement with full pay with effect from 7.12.2012 including release of the withheld salary throughout the period of interdiction and to continue in the respondent's employment unless lawfully terminated
  2. 2.The claimant to compute the amount of money due under order (1) and serve upon the respondent by 15.08.2014, for the parties to record the amount in court
  3. 3.The respondent to pay the amount by 1.10.2014, failing which interest at court rates payable from the date of judgment till full payment
  4. 4.The claimant to report to the respondent's Director General between the date of the judgment and 8.8.2014 for appropriate deployment
  5. 5.The respondent to pay costs of the suit

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Industrial Court Act, 2012Section 3
  • Official Secrets ActNot specified
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court; Industrial Court Act, 2012 (Section 3)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (5)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Edward Juma Masakha v National Environment Management Authority [2014] KEELRC 1210 (KLR)", Case Analysis (2014). Cause No 214 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1210/eng@2014-07-31

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