Martin O. Oluoch & 3 others v Board of Management Kenyatta National Hospital & another [2016] KEELRC 395 (KLR)
The bottom line
#Kenya's employment court ruled KNH wrongfully fired four senior managers without reasons or a hearing, awarding them salary damages plus Kshs 1 million each.
What this practically means
#Executive summary
#Key legal issues
#Whether there were valid reasons to terminate the services of the Claimants
There were no valid reasons; the termination letters gave no reasons and no statement of charges was ever issued to the Claimants
The termination letters of 20.3.2002 simply stated that the Hospital Management had decided to terminate the services of the Claimants without any reasons. Under Part XI of the Hospital's Terms and Conditions of Service, an employee facing dismissal must be supplied with a statement of charges setting out the offences and reasons warranting disciplinary action. No such statements were issued, and the Director had to write to the Permanent Secretary to explain his actions, confirming the absence of reasons.
Whether due process was followed before the termination
No due process was followed; the Claimants were never subjected to the disciplinary procedure in the 1st Respondent's Code
The Hospital's Code provided for statements of charges, the opportunity to reply within 72 hours, and Disciplinary Committees before which the employee could defend himself and present evidence. The Claimants were never subjected to any of these measures, nor given warnings or a hearing. The termination therefore breached both the Code and the rules of natural justice, condemning the Claimants unheard.
What remedies the Claimants are entitled to
12 months' salary as compensation, aggravated damages of Kshs 1 million each, pension and other retirement dues, costs and interest
Having found the termination unfair and unjustified, and that the Claimants were condemned unheard, the court awarded each Claimant the equivalent of 12 months' salary as damages for unlawful and unjustified dismissal, plus Kshs 1 million each in aggravated damages given the malicious and ill-intentioned nature of the dismissal which was broadcast on the 1 o'clock news, together with pension dues, costs and interest.
Legal principles established
#- A termination letter that gives no reasons for dismissal discloses no valid reason for termination
- Failure to subject an employee to the disciplinary procedure in the employer's own terms and conditions of service breaches the rules of natural justice and renders the dismissal unfair
- Aggravated damages may be awarded over and above statutory remedies where an employee's rights have been violated
Court orders
#- 1.Equivalent of 12 months' salary as damages for unlawful and unjustified dismissal to each Claimant (1st Claimant Kshs 847,860; 2nd Claimant Kshs 837,840; 3rd Claimant Kshs 809,820; 4th Claimant Kshs 961,020)
- 2.Aggravated damages of Kshs 1 million for each Claimant for the unfair, unlawful, wrongful, malicious and ill-intentioned acts of the 1st Respondent
- 3.Claimants to be paid their pension dues and any other dues they would have been entitled to at retirement
- 4.The 1st Respondent to pay costs of the suit
- 5.Amounts due to attract interest at Court rates with effect from the date of the Judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction following transfer from the High Court (HCCC No. 546/2002) on 23.7.2014
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Martin O. Oluoch & 3 others v Board of Management Kenyatta National Hospital & another [2016] KEELRC 395 (KLR)", Case Analysis (2016). Cause No. 1854 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/395/eng@2016-11-14
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.