Peter Karoki v Alba Petroleum Limited [2016] KEELRC 324 (KLR)
The bottom line
#A Mombasa court awarded a lab technician twelve months' salary because his employer could not prove why he was fired or that he was given a hearing.
What this practically means
#Executive summary
#Key legal issues
#Whether there was a valid and fair reason for termination
The respondent failed to prove poor performance or negligence on a balance of probability; no appraisal or witness who evaluated the claimant testified.
The HR Manager's statement did not demonstrate personal knowledge of the misconduct. She never witnessed the claimant working from the main office instead of the laboratory, and never appraised his performance after the salary increase of 1.3.2012. The person who evaluated the claimant's performance and allegedly saw him abandon the laboratory never adduced evidence. The burden under sections 43, 44, 45 and 47(5) of the Employment Act was therefore not discharged.
Whether a fair procedure was followed before termination
No hearing was conducted as required by section 41 of the Employment Act; the alleged chances to explain were not substantiated with dates, venue or names of persons present.
Section 41 requires the employer to explain the reasons for intended dismissal to the employee in a language the employee understands, in the presence of a union representative or fellow employee of choice, and to consider representations before dismissal. Although the HR Manager asserted the claimant was given two occasions to explain, the date, venue and names of persons before whom he appeared were not stated. The court found the procedural fairness burden not discharged.
What remedies flow from the unfair termination
Declaration of unfair and unlawful termination plus twelve months' salary as compensation under section 49, considering the claimant's long service and difficulty in securing comparable employment.
Having found the termination both substantively and procedurally unfair, the court made a declaration as prayed and awarded the twelve months' salary compensation claimed. In fixing the award at Kshs. 1,618,152, the court considered the claimant's long service of over fifteen years and the likelihood that he could not secure alternative employment of the same salary within a year even with due diligence, as guided by section 49 of the Employment Act.
Legal principles established
#- Termination of employment is unfair if the employer fails to prove valid and fair reasons and a fair procedure; the burden of proving substantive and procedural fairness lies on the employer.
- Under section 41 of the Employment Act, an employee must be heard, in the presence of a union representative or fellow employee of choice, before dismissal on grounds of misconduct.
Court orders
#- 1.Judgment entered for the Claimant declaring the termination of his employment unfair and unlawful
- 2.Award of Kshs. 1,618,152 being twelve months' salary as compensation for unfair termination
- 3.Costs of the suit to the Claimant
- 4.Interest on the award
- 5.Issuance of a Certificate of Service to the Claimant
- Jurisdiction invoked
- Employment and labour relations jurisdiction (Employment Act, sections 41, 43, 44, 45, 47(5) and 49)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Peter Karoki v Alba Petroleum Limited [2016] KEELRC 324 (KLR)", Case Analysis (2016). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/324/eng@2016-11-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.