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ELRCPartially AllowedCause Number 206 of 2015· [2016] KEELRC 1082 (KLR)

Kennedy Owuoth Odhiambo v Tea Warehouse Limited [2016] KEELRC 1082 (KLR)

Employment and Labour Relations Court (Industrial Court)
24 June 2016
1,476 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 ruled that firing a sick worker without a hearing was unfair and awarded him over Kshs. 200,000 in compensation and dues.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Sampling Clerk (later a Sorting Supervisor) at a monthly salary of Kshs. 20,659, was summarily dismissed on 20th September 2012 after failing to report to work from 17th September 2012. He claimed he was unwell, informed the Senior Warehouse Supervisor, and forwarded medical records through Mr. Bwire, a Warehouse Clerk sent by the Respondent to his house. He sought notice pay, leave pay, September salary, 12 months' compensation for unfair termination, overtime allowances, general damages, a certificate of service, costs and interest. The Respondent, in its Statement of Response, justified the dismissal under Sections 41 and 45 of the Employment Act but did not attend the hearing, and the Claimant's evidence went unchallenged. The court found the Claimant had left work without leave but with lawful cause - his illness, communicated to the Respondent - and that the Respondent's assertion it could not reach him was untrue. No hearing was granted, no charges drawn, and the Claimant was never asked to show cause; the dismissal was therefore unfair both substantively and procedurally. The court awarded 8 months' gross salary as compensation (Kshs. 165,272), one month's notice pay (Kshs. 20,659), 20 days' September salary (Kshs. 15,891) and annual leave pay of Kshs. 22,724 as prayed, together with a certificate of service under Section 51 of the Employment Act. The overtime and general damages claims were rejected for want of evidence, and the full September salary claim was reduced. Costs and interest at 14% per annum from the date of the Award were granted to the Claimant, with payment to be made within 30 days.

Key legal issues

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01

Whether the summary dismissal was substantively justified

Holding

The dismissal was not justified; the Claimant's illness was a lawful cause of absence, communicated to the Respondent through Mr. Bwire and the Senior Warehouse Supervisor

Reasoning

The Respondent alleged the Claimant absented himself and could not be reached, but led no evidence at trial. The Claimant testified he informed the Senior Warehouse Supervisor of his illness and forwarded medical records through Mr. Bwire, whom the Respondent itself sent to his house. The court found it untrue that the Respondent could not reach the Claimant or did not know why he was absent.

p. 2
02

Whether the summary dismissal was procedurally fair

Holding

The dismissal was procedurally unfair; no charges were drawn, the Claimant was not asked to show cause, and no hearing of any sort was granted

Reasoning

Section 41 of the Employment Act requires notice and a hearing before termination on grounds of misconduct. The Respondent granted no hearing, drew no charges, and never asked the Claimant to show cause why disciplinary action should not be taken. The Claimant therefore discharged his onus of proving unfair termination under Section 47.

p. 3
03

Quantum of compensation and other dues

Holding

The Claimant was awarded 8 months' gross salary as compensation, one month's notice pay, 20 days' September salary, and annual leave pay as prayed; overtime and general damages were rejected

Reasoning

Compensation of 8 months' salary was granted for the unfair dismissal. Annual leave pay was allowed because the Respondent failed to avail the Claimant's annual leave records. Overtime failed for want of evidence of when the excess hours were served, and general damages were refused as compensation had already redressed the economic injury.

p. 3

Legal principles established

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  • The employer bears the duty to demonstrate that termination is based on valid reasons and carried out fairly; the employee bears the onus of showing unfair termination
  • To justify termination based on an employee's absence from work, the employer must demonstrate the absence is without leave or without lawful cause
  • An employee must be heard and charged before termination; failure to grant a hearing renders dismissal unfair

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. 165,272
  3. 3.1 month salary in lieu of notice at Kshs. 20,659
  4. 4.20 days' salary for September 2012 at Kshs. 15,891 (total Kshs. 201,822)
  5. 5.Full amount to be paid within 30 days of delivery of the Award
  6. 6.Certificate of service to issue under Section 51 of the Employment Act
  7. 7.Costs and interest at 14% per annum to the Claimant calculated from the date the Award is delivered

Authorities

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Legislation

  • Employment ActSections 41, 43, 45, 47, 51
  • Industrial Court [Procedure] Rules 2010Rule 27[1][a]

Cases cited (1)

  • Dr. Stephen Ongere Nyaramba v. Ivee Iqua [EPZ] Limited
    Cause Number 191 of 2011 at Industrial Court sitting in Nairobi
Jurisdiction invoked
Industrial Court [Procedure] Rules 2010, Rule 27[1][a]; dispute over unfair and unlawful termination under the Employment Act

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, "Kennedy Owuoth Odhiambo v Tea Warehouse Limited [2016] KEELRC 1082 (KLR)", Case Analysis (2016). Cause Number 206 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1082/eng@2016-06-24

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