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ELRCPartially AllowedNot stated in the judgment (Memorandum of Claim dated 4th November 2015)· [2016] KEELRC 1131 (KLR)

Duncan Mbarire v Nairobi Aviation College Limited [2016] KEELRC 1131 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
26 May 2016
2,001 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer that fired a worker without notice or a hearing was ordered to pay compensation, because fair dismissal requires both a valid reason and a fair process.

What this practically means

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Executive summary

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The claimant, formerly employed by the respondent as a cleaner from 1st September 2011 and promoted to watchman in September 2013, sued by a Memorandum of Claim dated 4th November 2015 alleging wrongful, unfair and unprocedural termination of his employment on 9th September 2015. He alleged the termination followed his demand for a Kshs.3,000 balance for private clearing work done for the respondent's Eldoret Campus Principal, and sought Kshs.585,907.73 in various heads including twelve months' compensation, leave dues, service pay, house allowance, overtime, underpayment and breach of contract, plus a declaration, a certificate of service, costs and interest. The claim, though served, was undefended. The court framed three issues: whether the termination was wrongful, unfair and unlawful; entitlement to relief; and costs. Relying on sections 41, 43 and 45 of the Employment Act and claimant's cited authorities, the court held that the unrebutted claim passed for the truth, and that the respondent neither established a valid reason for termination nor afforded the claimant a hearing. It declared the dismissal unlawful, unprocedural and unfair. On remedies it declined to award the full sum claimed, instead granting one month's salary in lieu of notice (Kshs.9,000), six months' compensation (Kshs.54,000) and pending wages for nine days of August 2015 (Kshs.2,700), totalling Kshs.65,700. It ordered issuance of a certificate of service within fourteen days and awarded costs to the claimant. Judgment was delivered on 26th May 2016 by D.K.Njagi Marete, Judge.

Key legal issues

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01

Whether the termination of the claimant's employment was wrongful, unfair and unlawful

Holding

Yes - the termination was wrongful, unfair and unlawful

Reasoning

The claim was undefended despite service, so the claimant's uncontroverted evidence stood as the truth. The claimant testified he was never given notices to show cause nor heard before termination. Under sections 41, 43 and 45 of the Employment Act the employer must prove a valid reason and follow fair procedure; the respondent offered no rebuttal, so there was neither substantive justification nor procedural fairness.

p. 6
02

Whether the claimant is entitled to the relief sought

Holding

Partially - the court granted a declaration, notice pay, six months' compensation, pending wages and a certificate of service, rather than the twelve months and other heads claimed

Reasoning

Although the claimant sought twelve months' wages under section 49(c) plus leave dues, service pay, house allowance, overtime and underpayment, the court in its discretion awarded six months' compensation, one month's notice pay and pending wages for nine days, and ordered a certificate of service within fourteen days.

p. 7
03

Who bears the costs of the cause

Holding

The respondent, having unsuccessfully defended nothing, bears the costs

Reasoning

The claim succeeded on liability; the respondent neither appeared nor rebutted the claim. The court exercised its discretion on costs against the respondent and also in effect declined interest as not expressly ordered in the final orders.

p. 7

Legal principles established

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  • An undefended claim, where service is proved, is unrebutted and passes for the truth
  • Termination without notice to show cause or a hearing is unfair for want of substantive justification and procedural fairness

Court orders

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  1. 1.Declaration that the dismissal of the claimant by the respondent was unlawful, unprocedural and unfair
  2. 2.One month's salary in lieu of notice - Kshs. 9,000.00
  3. 3.Six months compensation for unlawful termination of employment - Kshs. 54,000.00
  4. 4.Pending wages for 9 days in August 2015 - Kshs. 2,700.00 (total award Kshs. 65,700.00)
  5. 5.Respondent to issue a certificate of service to the claimant within fourteen days of the orders of court
  6. 6.Costs of the claim to be borne by the respondent

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 45(4)(b)
  • Employment Act, 2007Section 35(b)
  • Employment Act, 2007Section 51
  • Employment Act, 2007Section 31
  • Employment Act, 2007Section 27(1)
  • Employment Act, 2007Section 49(c)
  • Labour Institution ActSection 15(c)
  • Legal Notice No.64/2011minimum wages
  • Legal Notice No.197/2013minimum wages
  • Legal Notice No.117/2015minimum wages

Cases cited (5)

  • Walter Ogal Anuro Vs Teachers Service Commission
    [2013] eKLR
  • Alphonce Machanga Mwachanya Vs Operation 680 Limited
    [2013] EKLR
  • Nicholus Muasya Kyula v Farmchem Limited
    Industrial Cause Number 1992 of 2011; [2012] LLR 235 (ICK)
  • Kabengi Mugo v Syngenta East Africa Limited
    Industrial Cause Number 1476 of 2011
  • Donald Odeke v Fidelity Security Limited
    Industrial Cause Number 1998 of 2011; [2011] LLR 277
Jurisdiction invoked
Employment and labour relations dispute under the Employment Act, 2007

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, "Duncan Mbarire v Nairobi Aviation College Limited [2016] KEELRC 1131 (KLR)", Case Analysis (2016). Not stated in the judgment (Memorandum of Claim dated 4th November 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1131/eng@2016-05-26

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