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ELRCPartially AllowedCause No. 428 of 2013· [2015] KEELRC 926 (KLR)

Cosmas Mwendwa Maithya v Enashipai Resort & Spa & another [2015] KEELRC 926 (KLR)

Employment and Labour Relations Court of Kenya
29 May 2015
1,799 words in judgment
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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, a chef at Enashipai Resort & Spa, was suspended on 9 July 2013 to allow investigations into allegations that he had interfered with a guest's food, and was summarily dismissed by letter dated 16 July 2013, which invoked section 44(4) of the Employment Act, 2007. He sued seeking Kshs 541,272/15 comprising notice pay, annual leave, days worked, overtime, service charge, house allowance, compensation and lost income. The Court framed two issues: whether the dismissal was unfair and the appropriate remedies. On fairness, the Court held that section 41 of the Employment Act requires an employer to observe natural justice before dismissal; although a hearing may be conducted through correspondence or face to face, where the process is not documented the employer must at least disclose who informed the employee of the allegations, when the hearing was held, who was present and the outcome. The Respondent's witness was hired after the dismissal, produced no minutes, and the officers who handled the process were not called. The Respondent also failed to discharge its burden, and contractual termination clauses without valid and fair reasons fall below section 45's minimum protections. The dismissal was therefore procedurally unfair. On remedies, the Court awarded Kshs 129,547/- double shift dues, Kshs 20,000/- July 2013 service charge and Kshs 100,392/- being three months' gross wages as compensation, totalling Kshs 249,939/-, while dismissing heads of claim for notice pay, annual leave, wages to 16 July 2013, the '2 years 9 months' claim, house allowance and lost income, and dismissing the claim against the 2nd Respondent. Costs of Kshs 75,000/- were awarded to the Claimant. Judgment delivered at Nakuru on 29 May 2015 by Radido Stephen, Judge.

Key legal issues

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01

Fairness of the summary dismissal

Holding

The summary dismissal was procedurally unfair as the Respondent failed to comply with section 41 of the Employment Act

Reasoning

The dismissal was for misconduct, requiring compliance with natural justice under section 41. The suspension letter only informed the Claimant of allegations for investigative purposes. The Respondent's witness was employed after the dismissal, had no records of a disciplinary hearing, and those who handled the process were not called as witnesses. The Respondent therefore failed to discharge the burden under section 41.

p. 3
02

Validity of contractual termination clauses vis-a-vis statutory minimums

Holding

Contractual provisions allowing termination on notice without valid and fair reasons fall below the minimum protection of section 45 and are invalid

Reasoning

The Respondent argued the dismissal was per the contract and notice pay was paid. The Court held the statutory framework now requires fair and valid reasons for dismissal, and contractual terms providing termination without cause are invalid for falling below section 45's minimum protections.

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03

Appropriate remedies for unfair dismissal

Holding

Compensation of 3 months gross wages awarded, plus double shift dues and July 2013 service charge

Reasoning

Compensation is a primary remedy for unfair termination but is discretionary. Considering the Claimant's roughly 3 years of service and his above-average chances of securing alternative employment as a chef, the Court awarded the equivalent of 3 months gross wages, assessed at Kshs 100,392/-, alongside unchallenged double shift and service charge claims.

p. 4

Legal principles established

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  • Section 41 of the Employment Act requires an employer to comply with the rules of natural justice before terminating an employee's services, and where the disciplinary process is not fully documented the employer must disclose who informed the employee of the allegations, when the hearing was conducted, who was present and the outcome
  • Contractual provisions permitting termination on notice or pay in lieu of notice without valid and fair reasons are invalid for falling below the statutory minimum protection under section 45 of the Employment Act
  • A hearing under section 41 of the Employment Act may be conducted through correspondence or through a face to face meeting

Court orders

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  1. 1.1st Respondent to pay Claimant Kshs 129,547/- double shift
  2. 2.1st Respondent to pay Claimant Kshs 20,000/- service charge for July 2013
  3. 3.1st Respondent to pay Claimant Kshs 100,392/- being 3 months gross wages as compensation for unfair dismissal
  4. 4.Total award of Kshs 249,939/-
  5. 5.Heads of claim for one month pay in lieu of notice, annual leave, 2 years and 9 months, house allowance and pay for period out of employment dismissed
  6. 6.Claimant to have costs of Kshs 75,000/-

Authorities

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Legislation

  • Employment Act, 2007section 44(4)
  • Employment Act, 2007section 41
  • Employment Act, 2007section 45
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

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, "Cosmas Mwendwa Maithya v Enashipai Resort & Spa & another [2015] KEELRC 926 (KLR)", Case Analysis (2015). Cause No. 428 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/926/eng@2015-05-29

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