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ELRCPartially AllowedCause Number 293 of 2015· [2016] KEELRC 564 (KLR)

Felix Munyoto Matheka v Tea Warehouses Limited [2016] KEELRC 564 (KLR)

Employment and Labour Relations Court
24 June 2016
JRJames Rika
1,330 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 found an employee was unfairly fired without a hearing and awarded him eight months' salary plus notice pay.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Port Clerk from June 2004, was summarily dismissed by letter dated 18th December 2012 to take effect on 14th January 2013, on the basis of alleged involvement in the theft of a container. He had been charged in Mombasa Chief Magistrates' Court Criminal Case Number 3150 of 2012 and acquitted on 26th March 2015. The Respondent, though served, did not enter appearance, file a response, or attend the hearing; the Claimant's evidence, pleadings and submissions were therefore unchallenged. The Court found there was no disciplinary process, no charges, no show-cause letter and no internal investigation implicating the Claimant, and that the criminal process the Respondent seemingly relied upon ended in acquittal. The Respondent failed to meet its obligations under Sections 41, 43, 45 and 47 of the Employment Act to demonstrate both a valid reason and a fair procedure, while the Claimant discharged his burden under Section 47 through unchallenged evidence. The Court awarded 8 months' gross salary (Kshs. 316,000) as compensation for unfair termination and 15 days' notice pay (Kshs. 19,500), holding that the effective date of dismissal already covered roughly half of the contractual 30 days' notice. Claims for gratuity/service pay were refused because the Claimant subscribed to the N.S.S.F; claims for refund of unremitted N.S.S.F and N.H.I.F contributions were reframed as a direction to remit those deductions to the relevant bodies; and claims for overtime, leave allowance, house allowance and underpayments failed for want of evidence. Costs and interest at 14% per annum were awarded to the Claimant, and a Certificate of Service was ordered to issue.

Key legal issues

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01

Whether the termination was unfair and unlawful

Holding

Termination was unfair: no disciplinary process, no charges, no show-cause, no internal investigation, and the criminal proceedings ended in acquittal

Reasoning

The Respondent relied on allegations of theft of a container but conducted no internal investigation and gave the Claimant no opportunity to be heard. The public criminal process it seemingly relied on ended in acquittal on 26th March 2015. The Respondent did not attend court or adduce evidence to demonstrate compliance with Sections 41, 43, 45 and 47 of the Employment Act. The Claimant's unchallenged evidence discharged his burden under Section 47.

p. 2
02

Quantum of compensation for unfair termination

Holding

8 months' gross salary (Kshs. 316,000) awarded, plus 15 days' notice pay (Kshs. 19,500)

Reasoning

The Court exercised its discretion to grant 8 months' gross salary as compensation for unfair termination. On notice pay, although the contract entitled the Claimant to 30 days' notice, the dismissal letter dated 18th December 2012 took effect on 14th January 2013, leaving at least 15 working days, so only the balance of 15 days' notice pay was justified.

p. 3

Legal principles established

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  • An employer must show both a valid reason for termination and that the decision was carried out fairly under Sections 41, 43, 45 and 47 of the Employment Act
  • A claimant bears the burden under Section 47 of the Employment Act of showing unfair termination occurred, dischargeable through unchallenged evidence

Court orders

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  1. 1.Declaration that termination was unfair
  2. 2.Respondent to pay 8 months' gross salary in compensation at Kshs. 316,000
  3. 3.Respondent to pay 15 days' salary in notice pay at Kshs. 19,500 (total Kshs. 335,000)
  4. 4.Entire sum to be paid within 30 days of delivery of the Award
  5. 5.Costs and interest at 14% per annum from date of delivery of the Award to the Claimant
  6. 6.Certificate of Service to issue
  7. 7.Respondent directed to remit all deducted N.S.S.F and N.H.I.F contributions

Authorities

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Legislation

  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)
  • Employment ActSections 35, 41, 43, 45, 47
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010, Rule 27(1)(a)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Felix Munyoto Matheka v Tea Warehouses Limited [2016] KEELRC 564 (KLR)", Case Analysis (2016). Cause Number 293 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/564/eng@2016-06-24

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