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ELRCDismissedCause not stated on the face of the judgment (application filed 3rd May 2016)· [2016] KEELRC 52 (KLR)

George Kiarie Kibochi v Resolution Insurance Company Limited [2016] KEELRC 52 (KLR)

Employment and Labour Relations Court
29 September 2016
1,835 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 refused emergency orders because the employee never produced the employment contract, but confirmed the employer's failure to follow dismissal procedures left the job relationship open.

What this practically means

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Executive summary

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The claimant, an employee of the respondent since March 2007, moved the court by Notice of Motion dated 3rd May 2016 seeking payment of salary arrears of Kshs.1,120,000.00, reinstatement of his medical cover, and a definition of his employment position pending hearing of the main suit. He alleged his salary was stopped without notice in October 2015, that his medical cover was cancelled, and that no dismissal or disciplinary process had ever been communicated. The respondent, through the affidavit of Maureen Osiche, countered that the claimant absconded duty from December 2015, that his remuneration was commission-based, and that by his own conduct he terminated his employment, owing the respondent Kshs.930,905.00. The court applied the parameters in Esther Mbinya Musau v National Bank of Kenya Limited, requiring an applicant to establish an infringed right. It found the employment contract was not produced by either party, leaving the court without the critical document regulating the relationship. On the alleged abscondment, the court held that even for summary dismissal the employee must be heard under section 42 of the Employment Act, and that written notice with reasons is required under sections 35 and 43; since none was issued, the claimant remained an employee. However, the factual disputes could not be resolved on the application. The motion was declined and the parties directed to attend the Deputy Registrar, ELRC for allocation of a hearing date on a priority basis.

Key legal issues

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01

Threshold for interlocutory orders in employment matters

Holding

The applicant must establish a right which has been infringed and that without a restraining order the substance of the right will be lost; the claimant failed as the employment contract was not produced

Reasoning

Relying on Esther Mbinya Musau v National Bank of Kenya Limited, the court set out the parameters for interlocutory relief: the applicant must show an existing infringed right. Here the pay slip showed commission-based earnings and deductions outside Part IV of the Employment Act, and neither party attached the employment contract, leaving the court without the critical document regulating the relationship and the rights flowing from it.

p. 2
02

Whether the claimant's employment stood terminated for absconding

Holding

No valid termination occurred: the respondent produced no record of any process, no notice, no reasons and no termination letter, so the claimant remains an employee

Reasoning

The respondent alleged abscondment amounting to summary dismissal under sections 44(3) and (4) of the Employment Act, but section 42 requires hearing and considering representations before dismissal. Further, sections 35 and 43 require written notice and reasons for termination. No such steps were evidenced, so the employer left the relationship open, inviting claims such as this one.

p. 3
03

Whether substantive issues can be resolved on an interlocutory application

Holding

No; matters of fact on termination and employment status must be established at the hearing of the main suit

Reasoning

The court declined to determine the underlying termination issue on the motion, holding that such factual findings would deny the court vital evidence needed for effective arbitration of the matter. The respondent had also submitted that orders replicated in the main suit cannot issue in the interim and that it is not the court's duty to redraw contracts. The court instead prioritised allocation of a hearing date.

p. 4

Legal principles established

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  • Even where an employer alleges serious misconduct warranting summary dismissal, the minimum procedure is to hear the employee and consider representations
  • Termination must be communicated in writing with reasons; absent notice and reasons, the employment relationship remains open

Court orders

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  1. 1.The application filed on 3rd May 2016 is declined
  2. 2.A hearing date shall be allocated on priority basis; parties shall attend before the court Deputy Registrar, ELRC for allocation of a mutually agreed hearing date

Authorities

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Legislation

  • Employment Actsection 44(3) and (4)
  • Employment Actsection 42
  • Employment Actsection 35
  • Employment Actsection 43
  • Employment ActPart four (IV)

Cases cited (4)

  • Emmanuel Mutisya Solomon versus Agility Logistics
    Cause No.1448 of 2011
  • Kaskazi Beach versus KUDHEIHA
    [2016] eKLR
  • Tom otieno Odongo versus Cabinet Secretary Ministry of Labour Social Security and Services & Another
    Cause No.1174 of 2013
  • Esther Mbinya Musau versus National Bank of Kenya Limited
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations matters (interlocutory reliefs pending hearing of the main suit)

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, "George Kiarie Kibochi v Resolution Insurance Company Limited [2016] KEELRC 52 (KLR)", Case Analysis (2016). Cause not stated on the face of the judgment (application filed 3rd May 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/52/eng@2016-09-29

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