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ELRCPartially AllowedCause No. 1712 of 2014· [2016] KEELRC 7 (KLR)

Angela Wokabi Muoki v Tribe Hotel Limited [2016] KEELRC 7 (KLR)

Employment and Labour Relations Court of Kenya
29 September 2016
11,350 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court awarded a hotel HR manager over Kshs.8.8 million because her employer forced her out without notice, reasons, or a fair hearing.

What this practically means

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Executive summary

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The Claimant, employed as Group Human Resource Manager from 2008, claimed she was on 15th July 2014 orally ordered to clear and hand over without notice or reasons, and later presented with 'final dues' implying summary dismissal, contrary to sections 41, 43 and 45 of the Employment Act and article 41 of the Constitution. She sought 12 months' compensation, 3 months' notice pay, July 2014 salary, leave pay, school fees refund, severance pay, punitive damages, a Certificate of Service and costs. The Respondent asserted she had indicated an intention to resign for new employment and left voluntarily, that the 5-year contract was a backdated document signed by Mr Somen before he was employed, and that the 'final dues' email was a template error. The court found that there was neither a termination notice nor a resignation notice, and that by removing the Claimant from the payroll, mail passwords and premises, the Respondent effectively forced her out without notice or reasons. The meeting of 13/15 August 2014 came after termination had taken effect and did not satisfy section 41. The 5-year contract was held valid as it was never shown to be a forgery, and 3 months' notice pay applied under clause 16(2). The racial discrimination claim failed because the comparators left after her exit. A Kshs.100,000 punitive award was granted for wilful failure to issue a proper Certificate of Service under section 51(3), and an unconditional certificate as Group Human Resource Manager was ordered. Maximum compensation of 12 months (Kshs.7,507,716.00), July salary, 36 days' leave pay and school fees were awarded with interest on some heads; severance was declined as no redundancy under section 40 was established; constitutional violation damages were refused. Costs were awarded to the Claimant.

Key legal issues

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01

Who terminated the employment relationship

Holding

The Claimant was forced out by the Respondent's conduct; termination was effected on 15/16 July 2014 without notice or reasons

Reasoning

The court found as common cause that there was neither a notice of termination by the Respondent nor a notice of resignation by the Claimant. The Respondent admitted directing the Claimant to hand over and be escorted off the premises, removing her from the payroll and mail passwords. Internal emails confirmed she had ceased to be an employee by 16 July 2014. The later meeting of 13/15 August came after termination had taken effect.

p. 12
02

Whether the termination was unfair

Holding

The termination was unfair; the Claimant was not given fair notification of the allegations nor a fair hearing under section 41

Reasoning

The Respondent relied on an anonymous email alleging gross misconduct but never interrogated its truthfulness. The Claimant was called from her office without her supervisor's knowledge and sent away without written reasons or notice. The court held the procedure adopted failed the mandatory requirements of sections 41, 43 and 45 of the Employment Act and amounted to an unfair labour practice.

p. 13
03

The applicable contract of employment

Holding

The 5-year contract relied on by the Claimant is valid and its terms apply, including the 3 months' notice under clause 16(2)

Reasoning

Although the letter of appointment was backdated and signed by a person not yet employed by the Respondent, there was no allegation of forgery, fraud or illegality. The letter formed part of the Claimant's work records in the employer's custody and was never challenged. The Respondent's own evidence showed an expectation of a 3-month notice period, and no contrary evidence of the 2-year contract terms was tendered.

p. 13
04

Whether there was racial discrimination against the Claimant

Holding

The discrimination claim failed; the comparison with foreign executives arose after her employment ceased

Reasoning

The Claimant based her claim on other executive members who were paid terminal dues. The court found these officers left after her termination, so weighing her circumstances against what happened to them was fishing for evidence too wide. The procedural and substantive fairness of her termination was to be assessed within her own employment, and the discrimination claim lacked basis.

p. 14
05

Certificate of Service

Holding

The Respondent wilfully failed to issue a proper Certificate of Service; a fine equivalent of Kshs.100,000 was awarded to the Claimant

Reasoning

Section 51(1) of the Employment Act mandates issuance of a certificate of service on termination, and section 51(3) criminalises wilful failure. The Respondent's witnesses admitted no certificate as required was issued, and the certificate offered gave an incorrect title. The court converted the criminal sanction into a payment of Kshs.100,000 to the Claimant and ordered an unconditional certificate as Group Human Resource Manager.

p. 16

Legal principles established

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  • An employer must give notice and valid reasons for termination under section 43 of the Employment Act, and termination requires a basis of conduct, capacity or performance preceded by a hearing
  • Even in cases warranting summary dismissal, a hearing under section 41(2) of the Employment Act is mandatory
  • Issuance of a Certificate of Service upon termination is mandatory and unconditional
  • An employer may monitor work email accounts and work materials are the property of the employer
  • An employee must not be victimised for lodging a claim with the court

Court orders

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  1. 1.Declaration that the Claimant was unfairly terminated from her employment with the respondent
  2. 2.Compensation for unfair termination awarded at Kshs.7,507,716.00
  3. 3.July 2014 salary awarded at Kshs.333,676.00
  4. 4.Leave due awarded at Kshs.866,275.00
  5. 5.School fees awarded at Kshs.53,000.00
  6. 6.Punitive damages awarded at Kshs.100,000.00, payable within 7 days
  7. 7.Interest to be paid on the July 2014 salary, leave due and school fees awards
  8. 8.Dues to be paid less what the Claimant may owe to Kentours Sacco and any advances made while in employment
  9. 9.Costs of the suit awarded to the claimant
  10. 10.Respondent to issue the Claimant with a Certificate of Service unconditionally as the Group Human Resource Manager within 7 days through her advocates on record

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 45
  • Employment Actsection 45(5)
  • Employment Actsection 51
  • Employment Actsection 51(1)
  • Employment Actsection 51(3)
  • Employment Actsection 46(h)
  • Employment Actsection 35
  • Employment Actsection 34
  • Employment Actsection 40
  • Employment Actsection 54
  • Employment Actsection 19(1)(h)
  • Constitution of Kenyaarticle 41

Cases cited (4)

  • Shankar Saklani versus DHL Forwarding (K) Limited
    [2012] eKLR
  • Mary Chemweno Kiptui versus Kenya Pipeline Company limited
    Cause No.435 of 2013
  • Kenya Union of Commercial Food and Allied Workers versus Meru North Farmers Sacco Limited
    Cause No.74 of 2013
  • Bar Bulescu versus Romania
    Application No.61496 of 2008
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and fair labour practice under article 41 of the Constitution

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Angela Wokabi Muoki v Tribe Hotel Limited [2016] KEELRC 7 (KLR)", Case Analysis (2016). Cause No. 1712 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/7/eng@2016-09-29

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