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ELRCPartially AllowedCause Number 253 of 2012· [2015] KEELRC 872 (KLR)

Esther Wanjiru Magu v Steelplus Limited [2015] KEELRC 872 (KLR)

Industrial Court at Nairobi
19 June 2015
2,283 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 ruled that firing or locking out a pregnant employee during maternity leave is automatically unfair discrimination, awarding her 24 months' salary.

What this practically means

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Executive summary

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The Claimant, employed as a Secretary from October 2009, went on three months' maternity leave in April 2011 and was not paid during that leave. When she sought to resume work in August 2011, the Respondent refused to admit her back. The Respondent asserted she was a casual employee who simply failed to return, but presented no evidence at the hearing. The Court found she was a regular employee who had converted under Section 37 of the Employment Act 2007, and that termination was instigated by the Respondent. The Respondent failed to observe the fair procedure required by Section 41 and did not demonstrate a valid reason under Sections 43 and 45. In the absence of any evidence from the Respondent, the Court inferred the termination was based on the Claimant's pregnancy, which is automatically unfair under Section 46. Applying its earlier decisions in Ruth Wanjiru Gichuhi v Mondeas Limited and G.M.V. v Bank of Africa Limited, the Court held that pregnancy discrimination offends the Constitution, the Employment Act and ILO Convention 183, and that the statutory 12-month compensation ceiling cannot adequately redress pregnancy discrimination. The claim was partially allowed: the Court declared the termination unfair and wrongful, awarded 12 months' salary as damages for pregnancy discrimination, another 12 months' compensation for unfair termination, and the withheld maternity salary of Kshs. 31,500, totalling Kshs. 283,500 payable within 30 days with interest thereafter. The prayers for 31 days' annual leave and service pay were refused for want of evidence. Costs were awarded to the Claimant.

Key legal issues

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01

Whether the Claimant was a casual employee

Holding

The Claimant was a regular employee who converted under Section 37 of the Employment Act; her daily rate did not make her a casual employee

Reasoning

The Claimant performed day-to-day administrative duties including attending Directors' meetings, handling mail and processing wages. Her role was not temporary or peripheral; she served continuously from October 2009 to August 2011 with probation and training periods. The daily rate of Kshs. 350 was converted to a monthly salary under Section 37 of the Employment Act.

p. 3
02

Whether the Respondent terminated the Claimant's employment

Holding

Termination was instigated by the Respondent; the Claimant did not abandon her position but was barred from returning after maternity leave

Reasoning

The Respondent gave no evidence to support its assertion that the Claimant failed to return. The Claimant testified she phoned and wrote asking when to resume duty, and received no invitation to return. Her advocates' demand letter two months after leave expired drew no reply and no invitation to resume work.

p. 3
03

Whether termination was procedurally fair and for a valid reason

Holding

Termination was procedurally unfair under Section 41 and without valid reason under Sections 43 and 45; the reason was the Claimant's pregnancy

Reasoning

The Respondent did not accord the Claimant a hearing before terminating and did not even accept responsibility for the termination. It also failed to demonstrate any reason for termination. In the absence of any evidence from the Respondent, the Court inferred the termination was based on her pregnancy, which is automatically unfair under Section 46 of the Employment Act.

p. 4
04

What remedies the Claimant is entitled to

Holding

The Claimant merits damages for pregnancy discrimination as well as compensation for unfair termination, and her withheld maternity leave salary

Reasoning

Following the approach in Ruth Wanjiru Gichuhi v Mondeas Limited and G.M.V. v Bank of Africa Limited, the Claimant lost her job because she was an economic burden to the Employer during pregnancy. She was granted 12 months' salary for pregnancy discrimination, another 12 months' compensation for unfair termination, and her withheld salary of Kshs. 31,500.

p. 4

Legal principles established

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  • Termination of employment on the basis of pregnancy is automatically unfair and constitutes discrimination at the workplace
  • An employee on maternity leave is entitled to full pay and to return to the same or comparable job on terms not less favourable
  • An employer who fails to give evidence cannot discharge the statutory burden of proving the reason for termination and its validity and fairness

Court orders

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  1. 1.It is declared termination was unfair and wrongful
  2. 2.The Respondent shall pay to the Claimant 12 months' salary in damages for pregnancy discrimination at Kshs. 126,000
  3. 3.The Respondent shall pay to the Claimant another 12 months' salary in compensation for unfair termination at Kshs. 126,000
  4. 4.The Claimant shall be paid her withheld salary of Kshs. 31,500
  5. 5.The full amount of Kshs. 283,500 shall be paid to the Claimant by the Respondent within 30 days of the delivery of this Award
  6. 6.Costs to the Claimant
  7. 7.The Award to attract interest at Court rate, upon expiry of the given 30 days from the date of delivery

Authorities

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Legislation

  • Industrial Court [Procedure] Rules 2010Rule 27 [1] [a]
  • Employment Act 2007Section 5[1]
  • Employment Act 2007Section 5[3]
  • Employment Act 2007Section 29
  • Employment Act 2007Section 35 [c]
  • Employment Act 2007Section 37
  • Employment Act 2007Section 41
  • Employment Act 2007Section 43
  • Employment Act 2007Section 45
  • Employment Act 2007Section 46

Cases cited (2)

  • Ruth Wanjiru Gichuhi v. Mondeas Limited
    Cause Number 1180 of 2010
  • G.M.V. v. Bank of Africa Limited
    [2013] e-KLR
Jurisdiction invoked
Industrial Court [Procedure] Rules 2010, Rule 27 [1] [a]; dispute over unfair and unlawful termination under the Employment Act 2007

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, "Esther Wanjiru Magu v Steelplus Limited [2015] KEELRC 872 (KLR)", Case Analysis (2015). Cause Number 253 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/872/eng@2015-06-19

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