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ELRCPartially AllowedCause No 389 of 2013· [2016] KEELRC 186 (KLR)

Kimutai Langat v Kenya Credit Traders Limited [2016] KEELRC 186 (KLR)

Employment and Labour Relations Court
14 October 2016
1,066 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 upheld a summary dismissal where the worker ignored letters asking him to explain poor performance, but ordered the employer to pay his leave allowance and security deposit.

What this practically means

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Executive summary

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The Claimant challenged his summary dismissal from Kenya Credit Traders Ltd, which was founded on insubordination - specifically his failure to respond to letters dated 2 November 2011 and 29 December 2011 seeking explanations for extremely poor performance between 18 September 2010 and 17 September 2011. The Claimant admitted in cross-examination that he saw both letters, did not respond, and attended a subsequent face-to-face meeting with the Respondent's General Manager and Operations Manager on 27 January 2012, after which he was dismissed. The Court framed two questions: whether the summary dismissal was unfair, and if so, the appropriate remedies. On procedural fairness, the Court held that a section 41 hearing can be conducted orally, through correspondence, or both, and found the Respondent in substantial compliance since the Claimant was twice given written opportunity to explain and was then granted a face-to-face meeting, yet offered no explanation. On substantive fairness, the Court characterized the Claimant's conduct as knowingly failing or refusing to obey a lawful command to explain poor performance within section 44(3), and found the dismissal substantively fair. Although the dismissal was held fair, the Court awarded two admitted heads of relief: leave allowance of Kshs 2,008 (an entitlement not pegged to the manner of separation) and Kshs 25,134.50 held on a security account, payable after separation, totalling Kshs 27,142.50. Pay in lieu of notice and compensation were refused as not tenable given the fairness finding. Save for the two heads of relief, the Cause was dismissed with no order as to costs.

Key legal issues

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01

Whether the summary dismissal was procedurally fair

Holding

The dismissal was procedurally fair; substantial compliance with section 41 was achieved through letters demanding explanations plus a face-to-face meeting

Reasoning

The Claimant was twice put on written notice to explain his poor performance and his failure to respond, and ignored both letters. A face-to-face meeting with the Respondent's managers was then held. Section 41's hearing requirement can be satisfied orally or through correspondence or both. The Claimant never offered any explanation, even in Court, for his failure to respond. The Court held the Respondent was in substantial compliance with procedural fairness requirements.

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02

Whether the summary dismissal was substantively fair

Holding

The dismissal was substantively fair; the Claimant's failure to respond fell under section 44(3) as knowingly failing or refusing to obey a lawful command

Reasoning

The principal reason for dismissal was the Claimant's failure to respond to requests for explanations regarding extremely poor performance. The Court characterized this conduct as knowingly failing or refusing to obey a lawful command to explain poor performance, amounting to gross misconduct under section 44(3) of the Employment Act justifying summary dismissal. The employer proved the reasons for termination as required by section 43.

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Entitlement to leave allowance and monies held on security account

Holding

Leave allowance of Kshs 2,008 and security account monies of Kshs 25,134.50 were admitted and payable regardless of the manner of separation

Reasoning

Leave allowance entitlement is not pegged to the manner of separation, and the Respondent's witness admitted owing Kshs 2,008 in leave travelling allowance. The Respondent's witness also admitted that the security monies were payable after 6 months of separation. The Court ordered payment of both amounts despite finding the dismissal fair.

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Legal principles established

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  • The procedural hearing envisaged under section 41 of the Employment Act, 2007 may be conducted orally, through correspondence, or a combination of both, depending on the nature and scope of employment
  • Leave allowance as an entitlement is not pegged to the manner of separation
  • Where an employer has a disciplinary policy in place, it ought to comply with such policy

Court orders

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  1. 1.The Court found and held that the summary dismissal of the Claimant was fair
  2. 2.Respondent ordered to pay the Claimant leave allowance of Kshs 2,008/-
  3. 3.Respondent ordered to pay the Claimant Kshs 25,134.50 held on security account
  4. 4.Total award of Kshs 27,142.50
  5. 5.Save for the two heads of relief, the Cause was dismissed with no order as to costs

Authorities

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Legislation

  • Employment Act, 2007Section 35
  • Employment Act, 2007Section 36
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44 (including section 44(3))
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 47(5)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act, 2007 (provisions of the Act invoked, including sections 35, 36, 41, 43, 44, 45 and 47(5))

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, "Kimutai Langat v Kenya Credit Traders Limited [2016] KEELRC 186 (KLR)", Case Analysis (2016). Cause No 389 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/186/eng@2016-10-14

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