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ELRCAllowedCause No. 599 of 2010· [2015] KEELRC 421 (KLR)

Musyoki Mweleli v Masaku Lucky Wholesalers [2015] KEELRC 421 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
8 October 2015
863 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court awarded a worker 12 months' salary after finding his employer fired him without a valid reason or a fair hearing.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a general labourer from March 1996 at a salary that rose to Kshs. 6,000 per month by 2007, claimed unfair termination of employment and non-payment of terminal benefits. He stated that on 13 April 2010 he handed over sales at the end of the day and was given permission to leave by one Kenzi, but the following morning the boss sent him away, accusing the workers of abandoning duty the previous evening. He was dismissed verbally, without an appointment letter or dismissal letter, and denied causing any loss. The Respondents, through B. M. Mung'ata & Company Advocates, filed an Amended Statement of Defence and Counterclaim admitting the employment but asserting the Claimant was dismissed for failing to account for goods supplied to customers, and counterclaimed Kshs. 31,280 as the alleged loss, while also alleging he absconded duty. The court framed three issues: validity of reasons, due process, and remedies. It found no valid reason for dismissal, since the Respondents produced no itemized list of goods and prices against monies returned, and the reason contradicted the pleaded abscondment. It further found that Section 41 of the Employment Act's procedural requirements were not observed, the dismissal being verbal. The termination was thus unfair and unjustified under Section 45. The court awarded the Claimant Kshs. 120,000 comprising one month's notice pay, service pay for 14 years, and 12 months' salary as compensation, plus interest.

Key legal issues

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01

Whether there were valid reasons for dismissal

Holding

No valid reasons were established; the employer produced no itemized evidence of the alleged shortfall, and the pleaded reason contradicted the claim of abscondment.

Reasoning

The Respondents alleged the Claimant failed to account for goods worth Kshs. 31,280 supplied to customers. However, they adduced no itemized list of goods and prices given to the Claimant against the money he returned to demonstrate any shortfall. Moreover, the reason advanced at trial contradicted the defence pleading that the Claimant absconded duty, undermining the credibility of the dismissal ground.

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02

Whether due process was followed before dismissal

Holding

No due process was followed; the Claimant was dismissed verbally without explanation or hearing as required by Section 41 of the Employment Act.

Reasoning

Section 41 of the Employment Act obliges an employer, before terminating on grounds of misconduct, to explain the reasons to the employee in a language he understands and to hear and consider any representations. The Respondents followed none of these steps, dismissing the Claimant verbally the morning after he had been given permission to leave work. The statutory procedure was therefore breached in its entirety.

p. 2
03

Whether the Claimant was unfairly terminated and entitled to remedies

Holding

The termination was unfair and unjustified under Section 45; the Claimant was awarded notice pay, service pay and 12 months' compensation.

Reasoning

Having found no valid reason and no fair procedure, the court concluded the termination was unfair under Section 45 of the Employment Act, which prohibits unfair termination and requires the employer to prove validity, fairness and procedural regularity. The court found for the Claimant and awarded one month's salary in lieu of notice, service pay for 14 years of service, and the maximum 12 months' salary as compensation for the unfair termination.

p. 2

Legal principles established

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  • An employer must prove both a valid reason and fair procedure before termination; absence of either renders termination unfair under Section 45 of the Employment Act.
  • Before terminating an employee for misconduct, the employer must explain the reasons and hear the employee's representations as required by Section 41 of the Employment Act.

Court orders

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  1. 1.Award of 1 month salary in lieu of notice of Kshs. 6,000
  2. 2.Award of service pay of 15 days salary for each year worked being 3,000 x 14 years = Kshs. 42,000
  3. 3.Award of 12 months salary compensation for unlawful and unfair termination = 6,000 x 12 = Kshs. 72,000
  4. 4.Total award of Kshs. 120,000 plus cost of interest

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 45
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act ( unfair termination claim)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Musyoki Mweleli v Masaku Lucky Wholesalers [2015] KEELRC 421 (KLR)", Case Analysis (2015). Cause No. 599 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/421/eng@2015-10-08

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