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ELRCPartially AllowedCause No 2 of 2014· [2014] KEELRC 1265 (KLR)

Lonah Alumera Anyera v Eldoret Wagon Hotel [2014] KEELRC 1265 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
19 September 2014
1,059 words in judgment
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The bottom line

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A Kenyan court ruled that forcing an employee to resign makes the termination unfair, awarding her a full year's salary.

What this practically means

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Executive summary

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The claimant, employed by the respondent from 07.01.2002 to 13.08.2013 as a cleaner and later floor supervisor, claimed that her employment was terminated without notice or a formal termination letter after a boardroom meeting at which she was directed to write a resignation letter on pain of adverse consequences. She sought a declaration of unlawful or unfair termination, one month's notice pay, leave pay, 12 months' compensation under section 49(1)(c) of the Employment Act, underpayment for 12 years, overtime, a certificate of service, costs and interest. The respondent filed a memorandum of response seeking dismissal of the claim but adduced no evidence to rebut the claimant's account. The court found that the reason for termination was alleged poor performance and that the applicable procedure was notice and a hearing under section 41 of the Employment Act. The respondent's self-devised procedure - a general staff performance meeting followed by a directive to resign - was held devoid of due process. Examining the resignation letter, the court held that a voluntary resignation would not import a plea to be recalled, and found the resignation involuntary and the termination unfair under sections 43 and 41. The claimant was awarded 12 months' salary (Kshs.96,000.00) as compensation, considering her 12 years of diligent service, commendation letters and non-contribution to the termination. Notice pay was refused because she received full pay for August and September 2013 after ceasing work, and the leave, underpayment and overtime claims failed for want of evidence. The certificate of service was ordered delivered and the respondent was ordered to pay costs.

Key legal issues

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01

Whether the resignation was voluntary

Holding

The resignation was not voluntary; the claimant was forced out against her intention to continue in employment, so the alleged reason for termination was not valid

Reasoning

The court examined the resignation letter, noting it contained a plea for forgiveness and an offer to be recalled, inconsistent with a genuine desire to leave. The director demanded the letter on pain of adverse consequences, denying the claimant time to reflect. The respondent adduced no rebuttal evidence. Accordingly the resignation was a device invented by the employer and the termination failed both substantive and procedural fairness under sections 43 and 41.

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02

Procedural fairness in termination for poor performance

Holding

The respondent's procedure of a staff meeting followed by a directive to resign was devoid of due process and contravened section 41

Reasoning

Section 41 of the Employment Act mandates notice and a hearing before termination on grounds of poor performance. The respondent instead convened a general performance review meeting and then compelled the claimant to write a resignation letter. No notice to show cause or hearing on the specific allegation of poor performance was given, rendering the process invalid and the termination unfair.

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Remedies for unfair termination

Holding

Claimant awarded 12 months' gross salary as compensation under section 49(1)(c), plus certificate of service; other heads failed for want of evidence

Reasoning

In assessing compensation the court considered the claimant's over 12 years of diligent service, letters of commendation, her non-contribution to the termination, and her expectation of long continued employment. The award was fixed at 12 months' salary of Kshs.8,000.00. Notice pay was refused because she had already been paid two months' full salary after ceasing work, and the remaining heads failed for want of proof.

p. 2

Legal principles established

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  • A resignation must be voluntary and unconditional; a resignation procured by the employer's directive or pressure is not valid and does not constitute a valid reason for termination
  • Termination for poor performance requires notice and a hearing under section 41 of the Employment Act

Court orders

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  1. 1.Declaration that the termination of the claimant's employment by the respondent was unfair
  2. 2.Respondent to pay the claimant Kshs.96,000.00 for unfair termination by 1.11.2014, in default interest at court rates from the date of judgment till full payment
  3. 3.Respondent to deliver to the claimant the certificate of service by 1.11.2014
  4. 4.Respondent to pay costs of the suit

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 49(1)(c)
  • Employment Act, 2007section 51
Jurisdiction invoked
Employment and labour relations jurisdiction under the Employment Act, 2007 (sections 41, 43, 49(1)(c) and 51)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Lonah Alumera Anyera v Eldoret Wagon Hotel [2014] KEELRC 1265 (KLR)", Case Analysis (2014). Cause No 2 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1265/eng@2014-09-19

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