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ELRCAllowedNot stated in judgment· [2016] KEELRC 324 (KLR)

Peter Karoki v Alba Petroleum Limited [2016] KEELRC 324 (KLR)

Employment and Labour Relations Court
18 November 2016
1,324 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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

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Executive summary

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The Claimant, employed by the Respondent from 1.10.1997 as a Laboratory Technician rising to Senior Laboratory Technician earning Kshs. 134,846.50 per month, was terminated by letter dated 8.3.2013 for poor performance and misconduct. The suit was disposed of by written submissions on the pleadings, witness statements and documentary evidence. The Claimant alleged the termination lacked a valid reason and that he was not heard; the Respondent maintained that warnings were issued, the claimant was given two occasions to explain, and all dues were paid. The court framed two issues: whether the termination was unlawful and unfair, and whether the reliefs sought should be granted. On substantive fairness, the court held that the employer bore the burden under sections 43, 44, 45 and 47(5) of the Employment Act and that the HR Manager's statement fell short of proving misconduct on a balance of probability - she never witnessed the alleged neglect, and the person who evaluated the claimant never testified. On procedure, no hearing under section 41 was conducted; the alleged explanations were unsupported by dates, venue or participants. The termination was therefore declared unfair and unlawful. Exercising discretion under section 49, and considering over fifteen years of service and the difficulty of securing comparable employment, the court awarded twelve months' salary of Kshs. 1,618,152, plus costs and interest, and ordered issuance of a Certificate of Service.

Key legal issues

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01

Whether there was a valid and fair reason for termination

Holding

The respondent failed to prove poor performance or negligence on a balance of probability; no appraisal or witness who evaluated the claimant testified.

Reasoning

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.

p. 2
02

Whether a fair procedure was followed before termination

Holding

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.

Reasoning

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.

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What remedies flow from the unfair termination

Holding

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.

Reasoning

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.

p. 3

Legal principles established

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  • 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

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  1. 1.Judgment entered for the Claimant declaring the termination of his employment unfair and unlawful
  2. 2.Award of Kshs. 1,618,152 being twelve months' salary as compensation for unfair termination
  3. 3.Costs of the suit to the Claimant
  4. 4.Interest on the award
  5. 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

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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, "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.