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ELRCPartially AllowedCause No 332 of 2013· [2014] KEELRC 1245 (KLR)

Peter Maroko Omondi v Pandya Memorial Hospital [2014] KEELRC 1245 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
12 September 2014
2,402 words in judgment
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The bottom line

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Kenyan employers cannot fire staff on notice without reasons—the court ruled even a poorly behaved employee must get a fair hearing before dismissal.

What this practically means

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Executive summary

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The Claimant, a Kenya Registered Community Health Nurse, was employed by the Respondent hospital on a two-year renewable contract from 19 January 2012. On 9 February 2013, while on leave, he was summoned to the Human Resources Manager's office, questioned about a circulating letter and about alleged incitement of nurses at Coast General Hospital, and handed a dismissal letter, receiving one month's salary in lieu of notice. The dismissal letter gave no reasons. The Industrial Court at Mombasa framed two issues: whether the dismissal was unfair and the appropriate relief. On procedure, the court found section 41 of the Employment Act, 2007 was breached: no disciplinary hearing was held, the employee was not informed of the allegations, and the fairness safeguards cannot be suspended because of an employee's unbecoming conduct; a professional HR practitioner should have allowed tempers to cool and then commenced a disciplinary process. On substance, the court held that under sections 43 and 45 an employer must prove valid and fair reasons even where notice or payment in lieu is given; contractual provisions permitting termination on notice without reasons are unlawful and invalid. The dismissal was substantively unfair. On relief, the court awarded compensation equivalent to 4 months gross wages (Kshs 106,000/-) under section 49(1)(c), noting the Claimant's above-average re-employment prospects and the 11 months remaining on the contract. The claim for lost income to expiry of the contract was refused, the court holding the 'any other appropriate relief' jurisdiction is ancillary only. The Claimant received costs.

Key legal issues

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01

Whether the dismissal was procedurally fair under section 41 of the Employment Act, 2007

Holding

Procedurally unfair - no disciplinary hearing was held; the employee was not notified of charges or given an opportunity to be heard.

Reasoning

Section 41 requires an employer contemplating termination on grounds of misconduct to inform the employee of the allegations and give a reasonable opportunity to respond. The Respondent's own witness admitted no disciplinary hearing was held, describing the meeting as counselling. The court held a professional HR practitioner should have let tempers cool and commenced a disciplinary process, and that fairness safeguards cannot be waived due to an employee's conduct. The Board's decision-making process was also unexplained.

p. 3
02

Whether termination on notice without reasons can be substantively fair under sections 43 and 45 of the Employment Act

Holding

Substantively unfair - the dismissal letter gave no reasons and termination without cause on notice is no longer lawful.

Reasoning

The letter of dismissal gave no reasons. The court held that under the Employment Act, 2007 an employer must prove valid and fair reasons even where notice or payment in lieu is given; contract clauses permitting termination on notice without reasons are unlawful and invalid. The Respondent's asserted reasons (insubordination, a request to be dismissed, constructive dismissal, breakdown of trust) were advanced in an atmosphere of flare tempers and were not in accord with justice and equity.

p. 4
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What relief is appropriate for unfair termination

Holding

Compensation of 4 months gross wages (Kshs 106,000/-) under section 49(1)(c); lost income refused.

Reasoning

Section 49(1)(c) permits compensation of up to twelve months gross wages considering the thirteen factors in section 49(4). The court noted the Claimant had above-average prospects of alternative employment (working locum) and that 11 months of the two-year contract remained. It awarded the equivalent of 4 months gross salary. The claim for lost income under the Industrial Court Act was refused as the 'any other appropriate relief' jurisdiction is ancillary only.

p. 4

Legal principles established

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  • Under sections 43 and 45 of the Employment Act, 2007, an employer cannot terminate employment without cause by notice or payment in lieu of notice; contractual provisions permitting termination on notice without reasons are unlawful and invalid.
  • Procedural fairness safeguards under section 41 of the Employment Act cannot be suspended on the basis of an employee's unbecoming conduct.
  • An employer must prove valid and fair reasons for dismissal even where notice is given.

Court orders

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  1. 1.The Respondent to pay the Claimant 4 months gross wages as compensation under section 49(1)(c) of the Employment Act, 2007, assessed at Kshs 106,000/-
  2. 2.The relief for lost income is dismissed
  3. 3.Claimant to have costs of the Cause

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 45
  • Employment Actsection 49(1)(c)
  • Employment Actsection 49(4)
  • Industrial Court Actsection 12(3)(viii) and 4

Cases cited (2)

  • David Gichana Omuya v Mombasa Maize Millers Ltd
    (2014) eKLR
  • Alphonce Sulpice Mzenge v Mombasa Air Safari Ltd
    Mombasa Cause No. 110 of 2013
Jurisdiction invoked
Industrial Court Act, section 12 (including s.12(3)(viii) and 4) read with the Employment Act, 2007

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, "Peter Maroko Omondi v Pandya Memorial Hospital [2014] KEELRC 1245 (KLR)", Case Analysis (2014). Cause No 332 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1245/eng@2014-09-12

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