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ELRCPartially AllowedNot stated in judgment· [2015] KEELRC 1477 (KLR)

Cyrus Kioko & 48 others v Wells Fargo Limited [2015] KEELRC 1477 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
3 February 2015
1,906 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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49 Kenyan security technicians won interim protection after being sacked without a hearing, but were placed on half-pay suspension instead of reinstatement.

What this practically means

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Executive summary

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This was a Notice of Motion dated 14/1/2015 filed by 49 technicians (the Claimants) seeking urgent interim preservatory orders following their summary dismissal on 9 January 2015 by their security-services employer. The motion, brought under Section 12 of the Industrial Court Act, Articles 41 and 43 of the Constitution and Sections 45 and 47 of the Employment Act 2007, sought stays of the dismissal letters, prohibition on declaring or filling the Claimants' positions, reinstatement with full salary, and alternatively suspension on half pay pending hearing of the main suit. Interim orders had already been granted restraining the filling of the posts. The Claimants deponed that they were denied a hearing: on the scheduled disciplinary date they and their Union (KPSWU) officials were locked out of the premises, and only 3 of 49 were proved served with suspension letters. They had left KUCFAW and joined KPSWU, but the Respondents dealt with KUCFAW officials instead. The Respondents, through Steve Kangethe, asserted the Claimants staged an illegal strike on 5/1/2015 over salary, review and management issues, refused to return to work, and were dismissed after due process; they also deponed they had recruited replacements starting 19/1/2015. Applying Giella v Cassman Brown, the court found a prima facie case - the Claimants were condemned unheard and denied Union representation contrary to Article 41. Reinstatement was declined as damages would suffice; instead the Claimants were to be treated as on suspension at half pay pending trial. The court condemned the Respondents' filling of posts in defiance of the 14/1/2015 order, declaring such actions null and void. The judgment was read in open court on 3 February 2015 by Lady Justice Hellen Wasilwa; no costs order was pronounced.

Key legal issues

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01

Whether the Claimants established a prima facie case for preservatory orders

Holding

Yes - they were condemned unheard and denied Union representation contrary to Article 41

Reasoning

The court found that of 49 Applicants only 3 were proved served with suspension letters inviting them to a disciplinary hearing; the rest were unproven to have been served or invited. The disciplinary hearing never took place as the Applicants and their Union officials were locked out of the premises. The Respondents dealt with the defunct KUCFAW instead of the Claimants' new Union KPSWU, whose officials were denied entry. These facts, if proved at trial, would justify a finding of unfair summary dismissal under Section 45 of the Employment Act and Article 41 of the Constitution.

p. 3
02

Whether reinstatement pending hearing should be granted

Holding

No; damages would adequately compensate, so the Claimants are placed on suspension at half pay pending trial

Reasoning

The court reasoned that reinstating the Claimants at the interlocutory stage would effectively condemn the Respondents without full consideration of all facts. Applying the second Giella condition, the court took the view that an award of damages would be an adequate remedy if the dismissals are ultimately found unlawful. The court instead exercised discretion to treat the Claimants as on suspension, entitling them to half salary pending the full hearing and disposal of the main case.

p. 4
03

Whether the Respondents' filling of the Claimants' posts was lawful

Holding

No - it blatantly disregarded the interim order of 14/1/2015 and all such actions are null and void

Reasoning

The court had on 14/1/2015 restrained the Respondents from filling the posts previously occupied by the Claimants. The Respondents nevertheless issued letters for certain persons to commence work on 19/1/2015, relying on the sensitivity of the positions. The court held that sensitivity of the positions gave no warrant to disobey court orders. Actions taken in breach of the order of 14/1/2015 were declared null and void and the prohibition on filling the posts was affirmed.

p. 4

Legal principles established

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  • Interim relief in employment matters is governed by the Giella v Cassman Brown conditions: prima facie case with probability of success, irreparable injury not compensable by damages, and balance of convenience
  • Dismissal of employees without hearing and without representation by their chosen Union contravenes Article 41 of the Constitution
  • A party who disobeys an interim court order restraining filling of posts cannot benefit from actions taken in defiance of the order

Court orders

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  1. 1.Prayer stopping the filing of the posts previously occupied by the Claimants stands and any action taken in defiance of the order of 14/1/2015 is null and void
  2. 2.The Claimants to be treated as on suspension and entitled to half pay pending final hearing and disposal of the case
  3. 3.Reinstatement declined; the Applicants to be compensated by damages if the dismissal is found unlawful at the hearing
Jurisdiction invoked
Section 12 of the Industrial Court Act as read together with Articles 41 and 43 of the Constitution and Sections 45 and 47 of 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, "Cyrus Kioko & 48 others v Wells Fargo Limited [2015] KEELRC 1477 (KLR)", Case Analysis (2015). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1477/eng@2015-02-03

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