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ELRCDismissedCause No. 211 of 2014· [2015] KEELRC 949 (KLR)

Dixon Amdama v Amani Tiwi Beach Resort [2015] KEELRC 949 (KLR)

Industrial Court of Kenya
16 June 2015
1,927 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Industrial Court confirmed employers can end probationary employment without a hearing, needing only 7 days' notice or pay under Section 42.

What this practically means

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Executive summary

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The Claimant, employed as Head Animator at the Respondent hotel on a one-year contract commencing 1st April 2013 with a two-month probation, had his contract terminated on 17th May 2013 after guests lodged complaints that trainees under his coordination left them unattended. He claimed notice pay, unpaid salary for seven months, salary for 14 days in March 2013, service charge, NHIF and NSSF contributions, damages for wrongful dismissal, costs and interest, and sought reinstatement. The Respondent asserted the termination fell within probation and complied with Section 42 of the Employment Act 2007, and that it had already paid the Claimant Kshs.78,000 in salary and Kshs.41,200 in terminal benefits. The court framed the real issue as whether Sections 41, 43, 45 and 47 of the Employment Act applied at all to a probationary contract. Following its own prior decision in Jalang'o v Amicabre Travel Services Limited, cited by the Respondent, the court held that probationary contracts are governed by their terms and Section 42, not the general termination protections, which are reserved for confirmed employees. The court found termination lawful, the Claimant overpaid relative to his entitlements, and dismissed all heads of claim. It nevertheless censured the Respondent for describing the Claimant as a nuisance and a pest, expunged that paragraph from the record, allowed the Claimant to collect his Certificate of Service, and made no order on costs and interest.

Key legal issues

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01

Whether the procedural and substantive protections of Sections 41, 43, 45 and 47 of the Employment Act apply to probationary employees

Holding

They do not; such employees are governed by contract terms and Section 42

Reasoning

The court framed the real issue as whether the general termination provisions applied at all to a probationary contract, rather than whether they were complied with. It upheld its prior decision in Jalang'o v Amicabre Travel Services, holding probation is a trial period in which the employee is tested before full admission, and the Section 41, 43, 45 and 47 rights are reserved for confirmed employees.

p. 4
02

Whether the Respondent complied with Section 42 in terminating the probationary contract

Holding

Yes; the Claimant received more than his lawful entitlements

Reasoning

Section 42 permitted termination within probation on 7 days' notice or pay in lieu. The Claimant was paid Kshs.78,000 salary for three months and Kshs.41,200 in terminal benefits comprising salary for the period worked, one month's notice pay, service charge and travelling allowance, exceeding the statutory minimum. Claims for unpaid salary, service charge, NHIF and NSSF were unfounded as remittances were shown.

p. 4
03

The propriety of insulting language in pleadings

Holding

The description of the Claimant as a nuisance and a pest was improper and expunged

Reasoning

The court condemned the use of vulgar or insulting language in the Statement of Response, holding parties must engage each other and the Court in an environment of mutual respect. It exercised its discretion to expunge the offending paragraph from the record, though this did not affect the outcome on the merits.

p. 4

Legal principles established

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  • Probationary contracts are governed by their terms and by Section 42 of the Employment Act, not Sections 41, 43, 45 and 47
  • A probationary employee is not entitled to a hearing or reasons for termination under Section 41; it suffices that the employer finds performance below expectation
  • Termination of a probationary contract requires 7 days' notice or 7 days' pay in lieu under Section 42

Court orders

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  1. 1.Declaration that termination was lawful in accordance with Section 42 of the Employment Act 2007 and the Claimant has received more than his rightful terminal benefits
  2. 2.Expungement of paragraph 10 of the Statement of Response referring to the Claimant as a pest from the record of the Court
  3. 3.Liberty for the Claimant to collect his Certificate of Service from the Respondent
  4. 4.No order on costs and interest

Authorities

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Legislation

  • Employment Act 2007Section 41
  • Employment Act 2007Section 42
  • Employment Act 2007Section 43
  • Employment Act 2007Section 45
  • Employment Act 2007Section 47
  • Employment Act 2007Section 35(5)
  • Industrial Court (Procedure) Rules 2010Rule 17(1)(a)

Cases cited (1)

  • Danish Jalang'o and Another v. Amicabre Travel Services Limited
    (2014) e-KLR
Jurisdiction invoked
Industrial Court jurisdiction over employment disputes; Rule 17(1)(a) of the Industrial Court (Procedure) Rules 2010

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Dixon Amdama v Amani Tiwi Beach Resort [2015] KEELRC 949 (KLR)", Case Analysis (2015). Cause No. 211 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/949/eng@2015-06-16

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