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ELRCPartially AllowedCause No. 1554 of 2011 (consolidated with Causes No. 1556 of 2011 and No. 1557 of 2011)· [2015] KEELRC 1589 (KLR)

Patrick Bernard Ekodere & 2 others v Kenya Meat Commission [2015] KEELRC 1589 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
23 April 2015
MNMatheus N. Nduma
2,976 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya Meat Commission lost over Ksh.20 million because it fired senior managers without issuing show-cause letters or giving them a hearing.

What this practically means

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Executive summary

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Three consolidated causes (Nos. 1554, 1556 and 1557 of 2011) were brought by senior managers of the Kenya Meat Commission - Patrick Bernard Ekodere (Livestock Manager), Peter Mwangangi (Chief Accountant) and Benjamin Kituku (Finance & Administration Manager) - whose employment was terminated on 12th July 2011 by a Special Board meeting on grounds of underperformance, inability to account for the Corporation's finances, failure to provide credible information, and general ineptitude and incompetence. Each claimed unpaid July 2011 salary, notice pay, leave, gratuity and the unserved balance of their fixed-term contracts. The Respondent admitted employment particulars but defended the terminations as contractually permitted, relying on a National Audit revealing losses and underperformance. Before the court, the Respondent's former Chairman candidly admitted that no show-cause letters were issued and no hearing was afforded the Claimants, the Board opting for immediate termination under the contracts' termination clauses with payment in lieu of notice. Relying on the Mary Chemweno Kipti decision, the court held that Section 41 of the Employment Act is couched in mandatory terms; internal procedures cannot displace its minimum standards. The admitted omission denied the Respondent the opportunity to prove a valid reason, rendering the terminations substantively and procedurally unfair under Section 45(2). Each Claimant was awarded contractual dues (gratuity, accrued leave, July salary, three months' notice) plus 10 months' salary as compensation under Sections 49(1) and (4), with interest at court rates from the date of judgment and costs of the suit.

Key legal issues

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01

Procedural fairness under Section 41 of the Employment Act

Holding

The termination was procedurally unfair because the Respondent admitted it issued no show-cause letters and afforded no hearing to the Claimants

Reasoning

The Respondent blatantly admitted it did not have to observe Section 41, relying on internal procedures permitting immediate termination under the contracts' termination clauses. The court held the Employment Act provides minimum statutory standards that override internal procedures, and the admitted omission denied the Respondent the opportunity to establish a valid reason for termination.

p. 7
02

Substantive validity of the reason for termination

Holding

The Respondent failed to prove a valid and fair reason, rendering the terminations substantively and procedurally unfair

Reasoning

Though the Respondent alleged underperformance, mismanagement and audit-revealed concealments, its admitted failure to follow the mandatory process meant it could not discharge its burden under Section 45(2) to prove the reason was valid, fair and related to the employees' conduct, capacity or compatibility.

p. 7

Legal principles established

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  • Section 41 of the Employment Act is mandatory; failure to accord an employee notice of charges and a hearing renders the termination unfair regardless of outcome
  • Internal employer procedures cannot displace the minimum standards of the Employment Act on fair termination
  • Under Section 45(2), an employer bears the burden of proving a valid reason and fair procedure for termination

Court orders

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  1. 1.Award to 1st Claimant Patrick Bernard Ekodere: gratuity Ksh.1,785,600.00; 46 days accrued leave Ksh.303,781.00; unpaid salary for 12 days July 2011 Ksh.250,000.00; three months' notice pay Ksh.750,000.00; 10 months' salary compensation Ksh.2,500,000.00; total Ksh.5,589,381.00
  2. 2.Award to 2nd Claimant Peter Mwangangi: gratuity Ksh.1,339,200.00; 125.5 accrued leave days Ksh.1,155,288.00; 12 days salary Ksh.72,000.00; three months' notice pay Ksh.540,000.00; 10 months' salary compensation; total Ksh.4,906,488.00
  3. 3.Award to 3rd Claimant Benjamin Kituku: gratuity Ksh.2,232,000.00; 127 leave days Ksh.1,169,096.00; 12 days salary Ksh.116,000.00; three months' notice pay Ksh.2,900,000.00; 10 months' salary compensation Ksh.3,480,000.00; total Ksh.9,897,096.00
  4. 4.Interest on the awards at court rates from the date of Judgment till payment in full
  5. 5.Respondent to pay each Claimant the costs of the suit

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 45(2)
  • Employment ActSections 49(1) and (4)

Cases cited (1)

  • Mary Chemweno Kipti V. Kenya Pipeline Company Limited
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, Sections 41, 45, 49)

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, "Patrick Bernard Ekodere & 2 others v Kenya Meat Commission [2015] KEELRC 1589 (KLR)", Case Analysis (2015). Cause No. 1554 of 2011 (consolidated with Causes No. 1556 of 2011 and No. 1557 of 2011). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1589/eng@2015-04-24

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