Daudi Mohammed v Rafiki Business Park Limited [2015] KEELRC 67 (KLR)
The bottom line
#A Kenyan court ruled that firing an employee without a valid reason and a fair hearing was unlawful, awarding him a full year's salary in compensation.
What this practically means
#Executive summary
#Key legal issues
#Whether there were valid reasons to warrant summary dismissal of the Claimant
No valid reasons existed; the alleged handing of office keys to an unauthorised person did not amount to gross misconduct under Section 44(4) of the Employment Act.
The Respondent justified the dismissal on the ground that the Claimant left office keys with an unauthorised person, causing a security lapse. The Claimant explained that he had to attend to other duties, including paying workers in other companies. The Court examined the grounds for summary dismissal under Section 44(4) of the Employment Act and found that the Claimant's conduct did not fall within any of them, making the summary dismissal very harsh.
Whether the Claimant was accorded due process before dismissal
The Claimant was not accorded due process; even if misconduct existed, he was entitled to a hearing under Section 41 of the Employment Act.
The Court held that under Section 41 of the Employment Act, an employer must, before terminating employment on grounds of misconduct, poor performance or physical incapacity, explain the reasons to the employee and hear any representations. Assuming the Claimant had committed misconduct, he was still entitled to a hearing, which the Respondent did not demonstrate was accorded to him.
What remedies the Claimant is entitled to
The Claimant was awarded one month's salary in lieu of notice, service pay for 5 years, 12 months' salary as compensation for wrongful termination, costs, a certificate of service, and interest.
Having found the termination unfair and unjustified under Section 45 of the Employment Act, the Court found for the Claimant and awarded notice pay of Kshs. 25,000/=, service pay computed at half pay for 5 years (Kshs. 35,000/=), and the maximum 12 months' salary as compensation for wrongful termination (Kshs. 300,000/=), plus costs, a certificate of service and interest from the date of judgment.
Legal principles established
#- Summary dismissal is justified only where the employee's conduct amounts to gross misconduct within the grounds set out in Section 44(4) of the Employment Act, 2007.
- Even where misconduct is established, an employee is still entitled to a hearing under Section 41 of the Employment Act, 2007 before termination or summary dismissal.
- A termination is unfair where the employer fails to prove a valid reason, a fair reason, and a fair procedure, as contemplated under Section 45 of the Employment Act, 2007.
Court orders
#- 1.Award of one month's salary in lieu of notice of Kshs. 25,000/= to the Claimant
- 2.Award of service pay for 5 years of Kshs. 35,000/= to the Claimant
- 3.Award of 12 months' salary as compensation for wrongful termination of Kshs. 300,000/= to the Claimant
- 4.Claimant to be issued with a Certificate of Service
- 5.Respondent to meet costs of the suit
- 6.Amount awarded to attract interest at court rates from the date of the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (employment dispute over unfair termination)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Daudi Mohammed v Rafiki Business Park Limited [2015] KEELRC 67 (KLR)", Case Analysis (2015). Cause No. 417 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/67/eng@2015-12-16
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.