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ELRCPartially AllowedCause No. 1569 of 2015· [2016] KEELRC 27 (KLR)

Marion Mwangi v Magnet Ventures Limited [2016] KEELRC 27 (KLR)

Employment and Labour Relations Court of Kenya
22 September 2016
5,462 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that ignoring a pregnant employee counts as pregnancy discrimination and that letting probation lapse automatically confirms employment.

What this practically means

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Executive summary

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The Claimant, recruited as an Account Manager through the Respondent's i-recruitment portal, was issued a contract of employment on 30th June 2014 subject to a three-month probation. She reported for a managerial workshop at Enashipai Resort, Naivasha on 5th July 2014, where the Human Resource Manager, Ms Winnie Tumboh, asked whether she was pregnant. The next day the Claimant disclosed her pregnancy; she was told not to report to work and to proceed on leave until after maternity leave. She was never paid, never issued any termination or warning letter, and when she sought to resume in January 2015 she was told she had deserted. She sued for unpaid salary, damages for wrongful termination, pecuniary damages of Kshs.24 million for discrimination and general damages of Kshs.5 million. The Respondent contended she absconded during probation and terminated her own contract. The Court found a valid contract subsisted and was never terminated; the probation lapsed on 10th October 2014 and employment stood confirmed by operation of law, so section 42 did not apply. The HR Manager's evidence was found lacking in credibility. The Court held the Claimant's absence was sanctioned for the wrong reason - her pregnancy - amounting to discrimination contrary to Article 27 of the Constitution and sections 5(3) and 46(a) of the Employment Act, and that termination without notice, hearing or reasons was unfair under sections 41, 43 and 45. Judgment was entered for the Claimant with declarations of unfair termination and discrimination, Kshs.900,000 in salary arrears, Kshs.100,000 notice pay, Kshs.50,000 damages for discrimination, a Certificate of Service, and costs. The larger pecuniary and general damages claims were refused as the Claimant worked only two days; Janine Buss was distinguished on long service.

Key legal issues

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01

Status of the Claimant's employment - was there a valid subsisting contract and did she abscond?

Holding

A valid employment contract existed dated 30th June 2014 and was never lawfully terminated; the probation lapsed on 10th October 2014 and employment was confirmed by operation of law; the contract remained valid for 9 months

Reasoning

The Respondent admitted issuing a written contract but never exercised its contractual right to terminate. Under section 9 of the Employment Act the employer is responsible for the written contract and changes must comply with section 13 in writing. Failing to issue any notice, warning or termination letter while leaving the contract intact cannot amount to employee desertion. The probation lapsed without extension, confirming employment by operation of law.

p. 6
02

Whether the Claimant was discriminated against on account of pregnancy

Holding

Yes - the Claimant was sent away and her absence sanctioned solely because of her pregnancy, contrary to Article 27 of the Constitution and sections 5(3) and 46(a) of the Employment Act

Reasoning

The Court found the Human Resource Manager's evidence untruthful: she admitted holding the Claimant's contacts but claimed the Claimant was not in the Respondent's system and was never followed up. A reasonable employer would have enquired after a new employee who attended an employer-directed training. The Claimant's absence was with the knowledge of the HR Manager who had learned of the pregnancy. Section 5(7) places the burden of disproving discrimination on the employer, which the Respondent failed to discharge.

p. 8
03

Whether the termination was unfair

Holding

Yes - termination without notice, hearing or reasons violated sections 41, 43 and 45 of the Employment Act and Article 41 of the Constitution

Reasoning

The Respondent, through a senior and experienced HR Manager, never issued any notice, hearing, warning or termination letter. Keeping the contract and doing nothing while the employee stayed away was an unfair labour practice. Section 42 protections for probationary termination were unavailable since the probation had lapsed and the reliance on it would excuse the employer's failure to act.

p. 6
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What remedies are appropriate

Holding

Salary arrears, one month's notice pay, damages of Kshs.50,000 for the discrimination (converted from the statutory fine under sections 5(6) and 88 of the Employment Act), and a Certificate of Service

Reasoning

Salaries were due under the still-valid contract up to the termination date referenced by the Claimant. Notice pay was due under the contract and section 35. For discrimination, the maximum statutory fine of Kshs.50,000 was converted into damages. Higher comparative damages in Janine Buss were distinguished because that employee had long service whereas this Claimant worked only 2 days.

p. 8

Legal principles established

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  • Where an alleged probationary period lapses without extension or confirmation issues, employment is confirmed by operation of law and section 42 protections for probationers cease to apply
  • An employer who leaves an employee's contract of employment undisturbed and does nothing cannot later claim the employee absconded or terminated her own contract
  • In discrimination proceedings under section 5 of the Employment Act, the employer bears the burden of proving that discrimination did not take place as alleged
  • Acts of discrimination in employment need not be overt; the mere perception that conduct sets an employee apart to deny a benefit is sufficient
  • Pregnancy, or any reason connected with it, is not a fair reason for dismissal or disciplinary penalty against a female employee

Court orders

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  1. 1.A declaration that the Claimant was unfairly terminated from her employment with the respondent
  2. 2.A declaration that the Claimant was discriminated against by the respondent
  3. 3.Salaries due awarded at Kshs.900,000.00
  4. 4.Notice pay awarded at Kshs.100,000.00
  5. 5.Damages awarded at Kshs.50,000.00
  6. 6.The Respondent shall issue a Certificate of Service in accordance with section 51 of the Employment Act
  7. 7.Costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 27(1) and 27(4)
  • Constitution of Kenya, 2010Article 41
  • Employment Actsection 5(3), 5(6), 5(7)
  • Employment Actsection 9(2)
  • Employment Actsection 13(1)
  • Employment Actsection 29
  • Employment Actsection 35
  • Employment Actsection 41
  • Employment Actsection 42
  • Employment Actsection 43
  • Employment Actsection 45
  • Employment Actsection 46(a)
  • Employment Actsection 51
  • Employment Actsection 88(1)
  • ILO Convention 1958 (No.111) on Discrimination (Employment and Occupation)null

Cases cited (6)

  • Janine Buss versus GEMS Cambridge International School Limited
    Cause No.612 of 2012
  • Mercy Njoki Karigithi versus Emerald Hotels Resorts & Lodges Ltd
    Cause No.337 of 2013
  • BIFU versus Barclays Bank of Kenya Ltd
    [2014] eKLR
  • Ephrahim John Amwayi versus Mabati Rolling Mills Ltd
    [2014] eKLR
  • Joseph Njoroge Kiama versus Summer Limited
    [2014] eKLR
  • Danish Jalang'o 7 Another versus Amicabre Travel Services Limited
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Article 41 of the Constitution; discrimination claims founded on Article 27 of the Constitution and sections 5 and 46(a) of the Employment Act

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, "Marion Mwangi v Magnet Ventures Limited [2016] KEELRC 27 (KLR)", Case Analysis (2016). Cause No. 1569 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/27/eng@2016-09-22

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