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ELRCDismissedCause (transferred from High Court; number not stated in judgment)· [2015] KEELRC 209 (KLR)

Duncan Kariuki Kinyanjui v Kenya Power & Lighting Company Ltd [2015] KEELRC 209 (KLR)

Employment and Labour Relations Court
27 November 2015
1,369 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenya Power employee's termination claim failed because older employment law didn't require a hearing, and courts won't award wages up to retirement.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent in 1992 as a Foreman/Supervisor, sued on 2 November 2010 alleging unlawful termination of his employment by letter dated 2 November 2007, seeking a declaration that the termination was unlawful and lost earnings up to the retirement age of 60. The suit was filed in the High Court and transferred to the Employment and Labour Relations Court in February 2014. The Respondent filed a defence and called no witnesses at trial. The court identified two issues: whether the termination was unlawful, and appropriate remedies. Applying the law applicable at the date of termination - the repealed Employment Act, cap. 226, the Employment Act, 2007 having commenced only on 2 June 2008 - the court held there was no statutory right to a pre-termination hearing unless contractually agreed, and no natural justice complaint could succeed absent a contractual foundation, which was not pleaded. The employer had given the reason for termination and offered one month's pay in lieu of notice under clause 13 of the contract, so the termination was lawful and the question of unlawfulness became academic. On limitation, the six-year contractual period under the Limitation of Actions Act had not expired when suit was filed. On remedies, the court held there is no contractual, statutory or other legal basis for compensating an employee for earnings up to retirement, applying Bank of Uganda v Tinkamanyire. The claim was dismissed with costs to the Respondent, the Claimant also having filed submissions late without explanation.

Key legal issues

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01

Whether the termination was unlawful and whether natural justice was breached

Holding

The termination was lawful under the then-applicable repealed Employment Act (Cap. 226), which did not require a hearing or proved reasons; the natural justice complaint failed absent a contractual basis

Reasoning

The termination occurred on 2 November 2007, before the Employment Act, 2007 commenced on 2 June 2008, so the repealed Act applied. That Act provided no right to a pre-termination hearing, and a natural justice complaint could only rest on contract, none being pleaded. The employer gave notice/pay in lieu under clause 13, and even reasons for termination. The authorities relied on by the Claimant concerned a specific statutory framework (police service) of no general application.

p. 2
02

Limitation

Holding

The claim was filed within the six-year limitation period for contract claims under the Limitation of Actions Act

Reasoning

The cause of action arose on 2 November 2007 and suit should have been commenced on or before 1 November 2013 under the Limitation of Actions Act's six-year period for contract claims. The cause was filed on 2 November 2010 and was therefore not time-barred. The court noted this issue was identified but not pursued by the parties.

p. 3
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Remedies for unfair/wrongful termination

Holding

Lost earnings up to retirement age are not recoverable; no legal foundation for the relief was laid

Reasoning

Apart from the declaration, the Claimant sought wages he would have earned to age 60. The court held there is no contractual, statutory or other legal foundation for such a head of damages, citing Ugandan Supreme Court authority that compensation for the remainder of years to retirement is unattainable in law. The claim for lost earnings accordingly failed.

p. 3

Legal principles established

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  • Before the Employment Act, 2007 came into force, there was no general statutory right to a hearing in employment contracts unless contractually agreed
  • Under the repealed Employment Act regime, an employer could terminate for a bad or good reason, provided the agreed notice or pay in lieu was given
  • Compensation for the unexpired period up to retirement is not an available remedy for wrongful termination

Court orders

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  1. 1.The Claimant's case is dismissed with costs to the Respondent

Authorities

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Legislation

  • Employment Act, cap. 226 (repealed)general
  • Employment Act, 2007commencement 2 June 2008
  • Limitation of Actions Actsix-year limitation period in contract

Cases cited (7)

  • Gedo Abdulahi Mohamed v Commissioner of Police & Attorney General
    (2015) eKLR
  • Abbot v Sullivan
    (1952) 1 KB 189
  • Cyrus Nyaga Kabute v Kirinyaga County Council
    Civil Appeal No. 29 of 1985
  • Rift Valley Textiles Ltd v Edward Onyango Oganda
    Nakuru Civil Appeal No. 27 of 1992
  • Peter Whitton & Ar v Kenya Educational Trust Ltd
    Nakuru High Court Civil Case No. 56 & 57
  • Amos Sasine Kitaika v Masaai Mara University
    (2015) eKLR
  • Bank of Uganda v Tinkamanyire
    (2009) 2 EA 66
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction following transfer of the suit from the High Court by the Deputy Registrar's direction of 21 February 2014

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Duncan Kariuki Kinyanjui v Kenya Power & Lighting Company Ltd [2015] KEELRC 209 (KLR)", Case Analysis (2015). Cause (transferred from High Court; number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/209/eng@2015-11-27

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