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ELRCPartially AllowedCause No 1960 of 2014· [2015] KEELRC 483 (KLR)

Caroline Chemutai Rotich v Chase Bank (Kenya) Limited [2015] KEELRC 483 (KLR)

Employment and Labour Relations Court
2 October 2015
ANAbuodha J. N.
3,756 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, employed on 14th October 2013 as Senior Manager Retail Banking at a gross monthly salary of Kshs. 333,000, was barred from her workplace on 27th October 2014 when her staff badge was confiscated and her access to the respondent's ICT system disabled, without prior explanation. The respondent contended she was on an extended probation and was terminated on 27th October 2014 for incompetence and poor performance, following a meeting that day. The claimant maintained she was never warned, that her appraisals were satisfactory, that the emails relied on were routine office correspondence, and that the meeting was a surprise at which she was not allowed to defend herself. She sought a permanent injunction against breach of her employment contract or, in the alternative, compensation of 12 months' wages and damages for discrimination and inhuman treatment. The court framed three issues: validity of the reasons for termination, fairness of procedure, and quantum of compensation. It found the emails nonspecific and incapable of assigning individual blame in a team-oriented business strategy, noted the absence of a show cause letter, and held there was no valid reason for termination. The minutes of the 27th October meeting showed a predetermined outcome, contravening the Employment Act's requirement of advance notice of charges and a fair opportunity to respond. Awarding 10 months' salary as compensation, subject to taxes and authorized deductions, the court also granted the claimant the costs of the suit. The injunction and damages heads were not granted.

Key legal issues

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01

Validity of the reasons for termination on grounds of incompetence and poor performance

Holding

The court found no valid or justifiable reason for the termination; the emails relied on were general correspondence not specifically assigning blame to the claimant, and no show cause letter was issued.

Reasoning

The court held that non-performance in strategy-driven, team-oriented roles is hard to attribute to one individual and must be mapped over time using organizational performance tools. The email communications reviewed contained nothing specific blaming the claimant for any target failure. Had there been specific shortcomings attributable to her, a show cause letter would have been issued; none was. The court therefore could not find any reason whose validity could be examined.

p. 6
02

Fairness of the procedure adopted in the termination

Holding

The procedure was flawed and contravened the Employment Act and natural justice; the meeting of 27th October 2014 was a fait accompli convened without prior notice of charges.

Reasoning

The minutes indicated the meeting was convened to discuss reasons for termination of the claimant, showing a predetermined outcome. The Employment Act requires that an employee subject to a disciplinary hearing be furnished with the charges in advance and given a reasonable opportunity to respond. The claimant was not given a chance to defend herself. Even if valid reasons existed, the procedure adopted violated the Act and natural justice.

p. 7
03

Quantum of compensation for unfair termination

Holding

The court awarded 10 months' salary as compensation, considering the claimant's approximately one year of service and the financial disruption caused, including her transferred mortgage of approximately Kshs. 7 million.

Reasoning

The claimant had worked for about one year at termination and had moved a mortgage of approximately 7 million shillings from Kenya Commercial Bank to the respondent by virtue of her employment; termination would obviously disrupt her financial circumstances. Drawing on the protective thrust of current employment and labour laws, and the legitimate expectations of employees, the court exercised discretion to award 10 months' salary, subject to taxes and authorized deductions.

p. 7

Legal principles established

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  • Termination on account of non-performance or incompetence requires the employer to assign specific, verifiable blame to the individual employee, typically through performance tools and a show cause letter; general team-oriented emails do not suffice.
  • An employee facing a disciplinary hearing must be furnished in advance with the charges and afforded a reasonable opportunity to respond; a meeting convened as a fait accompli to discuss termination contravenes the Employment Act and natural justice.

Court orders

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  1. 1.Award of 10 months' salary to the claimant as compensation for unfair termination of her services
  2. 2.The award to be subject to taxes and any other authorized deductions
  3. 3.The claimant to have the costs of the suit

Authorities

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Legislation

  • Employment ActNot specified (provisions on reasons for and procedure of termination)

Cases cited (1)

  • Manginya Salim Murgani v. KRA
    2008 eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction (Employment Act); specific constitutional/statutory article not stated in the judgment

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, "Caroline Chemutai Rotich v Chase Bank (Kenya) Limited [2015] KEELRC 483 (KLR)", Case Analysis (2015). Cause No 1960 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/483/eng@2015-10-02

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