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ELRCAllowedCause No 39 of 2012· [2015] KEELRC 944 (KLR)

Jackline K.Muchiri v Everest Enterprises Limited [2015] KEELRC 944 (KLR)

Industrial Court (Employment and Labour Relations Court)
12 June 2015
1,130 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Nyeri employment court ruled the dismissal unfair because the employer never produced the attendance register it relied on, awarding the employee Kshs. 80,500.

What this practically means

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Executive summary

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The claimant, employed by the respondent as an administrative assistant from 06.08.2011 to 05.08.2012, sued for a certificate of service, one month's pay in lieu of notice, pay for the unexpired term of her fixed term contract, general damages for breach of contract, and costs. Her claim arose from a compulsory leave commencing 28.02.2012 (on instructions from Farm Manager Robert, who allegedly told her she would not return to work due to the respondent's financial difficulties), followed by a show-cause letter of 13.03.2012, a recall to duty on 19.03.2012, and her summary dismissal by letter dated 27.03.2012 for allegedly reporting at 7.30AM and leaving at 8.15AM on 22.03.2012 per the gate register. The respondent, through its Human Resource Manager, confirmed a check-in register existed but never produced it in court, and admitted unresolved differences between the claimant and her supervisor. The court found the claimant's evidence that she was locked out credible and held the dismissal unfair for want of a genuine reason under section 43 and lack of a valid reason under section 46(h) of the Employment Act, 2007. Judgment was entered for the claimant: a declaration that the dismissal was unfair, delivery of a certificate of service by 1.08.2015, payment of Kshs. 80,500.00 (comprising notice pay of Kshs. 11,500.00, unexpired-contract pay of Kshs. 57,500.00, and one month's compensation under section 49(1)) by 1.08.2015 with interest at court rates thereafter, and the claimant's costs.

Key legal issues

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01

Whether the summary dismissal was unfair

Holding

The dismissal was unfair both for want of a genuine reason under section 43 and because the circumstances relied on were not valid reasons under section 46(h).

Reasoning

The dismissal letter alleged the claimant reported at 7.30AM and left at 8.15AM on 22.03.2012 per the gate register and could not be traced. The respondent's witness confirmed a register existed but never produced it. The court therefore accepted the claimant's account that she was locked out. The preceding compulsory leave stemmed from misleading instructions by the Farm Manager Robert, and the dispute between the claimant and her supervisor remained unresolved, which could not justify termination.

p. 2
02

Whether the claimant was entitled to one month's pay in lieu of notice

Holding

Yes, Kshs. 11,500.00, since no termination notice was given.

Reasoning

The court found the claimant was not given a termination notice and therefore awarded one month's pay in lieu, being her last monthly salary of Kshs. 11,500.00.

p. 2
03

Whether the claimant was entitled to pay for the unexpired term of the fixed term contract

Holding

Yes, Kshs. 57,500.00 for the 5 months unexpired term.

Reasoning

The claimant served on a renewable one-year contract running from 6.08.2011 to 5.08.2012 at a monthly salary of Kshs. 11,500.00. With about 5 months unexpired at termination, and no material on record to render the award unjustified, the court awarded the full unexpired term as due pay for breach of the fixed term contract.

p. 2
04

Compensation for unfair termination under section 49(1)

Holding

One month's pay (Kshs. 11,500.00) awarded in addition to the unexpired-term pay.

Reasoning

Having found the dismissal unfair and having already awarded full pay for the unexpired term, the court considered that one month's pay for the unfair termination would meet the ends of justice under section 49(1) of the Act.

p. 2

Legal principles established

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  • An employer relying on an attendance register to justify summary dismissal must produce the register in evidence; failure to do so means the employer has not established a genuine reason for termination under section 43 of the Employment Act.
  • An unresolved grievance or dispute between an employee and a supervisor cannot constitute a valid reason for termination under section 46(h) of the Employment Act.
  • Breach of a fixed term contract entitles the employee to pay for the unexpired term of service.

Court orders

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  1. 1.A declaration that the summary dismissal of the claimant by the respondent from employment was unfair
  2. 2.The respondent to deliver to the claimant the certificate of service by close of 1.08.2015
  3. 3.The respondent to pay the claimant Kshs. 80,500.00 by 1.08.2015 failing which to pay interest at court rates from the date of judgment till full payment
  4. 4.The respondent to pay the claimant's costs of the suit

Authorities

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Legislation

  • Employment Actsection 43
  • Employment Actsection 46(h)
  • Employment Actsection 49(1)
  • Employment Actsection 51
Jurisdiction invoked
Employment and labour relations jurisdiction under the Employment Act, 2007 (first-instance memorandum of 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, "Jackline K.Muchiri v Everest Enterprises Limited [2015] KEELRC 944 (KLR)", Case Analysis (2015). Cause No 39 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/944/eng@2015-06-12

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