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ELRCPartially AllowedCause No 1051 of 2014· [2016] KEELRC 1154 (KLR)

Onesmus Nzwili v Agro Irrigation & Pump Service Ltd [2016] KEELRC 1154 (KLR)

Employment and Labour Relations Court of Kenya
27 May 2016
1,406 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, formerly a Crush Machine Operator and later Socketing Operator with the Respondent, sued for unlawful dismissal and terminal dues after being summarily dismissed on 21st March 2014. He sought a declaration that the dismissal was wrongful and unfair, one month's salary in lieu of notice, leave pay for seven years, twelve months' salary as compensation, costs and interest. The Respondent contended that the Claimant was found sleeping on night shift while his machine ran unattended, causing breakdown and losses; that he declined to apologise or attend a disciplinary hearing; and that dismissal was therefore justified and procedure was observed, with terminal dues paid. The Court framed three issues: valid reason, due procedure, and remedies. Applying Section 43 of the Employment Act, the Court held that although the employer need not have the Court substitute its own decision, the reason must be established through disciplinary proceedings; here, testimony showed the operative reason was the Claimant's refusal to write an apology letter, and refusal to admit guilt cannot constitute a valid reason. On procedure, Section 41's mandatory requirements (explanation of reasons, representation, hearing of explanations) were not met, and the Claimant was denied a hearing, rendering the dismissal procedurally unfair. The Court awarded six months' salary in compensation (Kshs. 80,166), one month's notice pay (Kshs. 13,361), and prorata leave pay for two completed months of 2014 (Kshs. 1,559), totalling Kshs. 95,086, plus a certificate of service, costs of the case, and interest at court rates from the date of the award until payment in full. Claim delivered on 27th May 2016 by Linnet Ndolo, Judge.

Key legal issues

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01

Validity of reason for summary dismissal under Section 43 of the Employment Act

Holding

No valid reason was established; the operative reason was the Claimant's refusal to write an apology, which is an admission of guilt and cannot justify termination

Reasoning

The termination letter cited sleeping on duty causing loss, but the Production Supervisor's testimony showed the employer repeatedly demanded an apology letter, which the Claimant declined, before dismissal. Since an apology amounts to an admission of guilt, refusal to give one cannot be a valid reason under Section 43, and the employer failed to discharge its burden of proving a reason that would move a reasonable employer to terminate.

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02

Procedural fairness under Section 41 of the Employment Act

Holding

The dismissal was procedurally unfair because the Claimant was not afforded an opportunity to be heard

Reasoning

Section 41 requires the employer to explain the reasons for disciplinary action in a language the employee understands, allow a representative, and hear and consider explanations. An employer with over 50 employees must also document internal disciplinary rules under Section 12. The Respondent followed none of this: the Claimant was simply told of the dismissal decision and escorted out, with no hearing at all.

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Remedies for unfair dismissal

Holding

Six months' salary in compensation, one month's notice pay, and prorata leave for two completed months awarded

Reasoning

Having found the dismissal both unjustifiable and procedurally unfair, the Court exercised its remedial discretion under Section 49, taking into account the Claimant's length of service (from 2006/2008 to 2014) and the Respondent's conduct in the dismissal process. Notice pay was awarded as the dismissal was with immediate effect; leave pay was limited because payslips showed leave pay had been paid up to December 2013.

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Legal principles established

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  • Under Section 43 of the Employment Act, the employer bears the burden of proving a reason that would move a reasonable employer to terminate employment
  • In applying Section 43, the Court does not substitute its own decision for the employer's; it reviews the reason for reasonableness
  • The reason for termination must be established at the workplace in the course of disciplinary proceedings, with a nexus between reason and process
  • Refusal to write a letter of apology, being refusal to admit guilt, cannot be a valid reason for terminating employment
  • An employer who denies an employee an opportunity to be heard under Section 41 effects a procedurally unfair dismissal

Court orders

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  1. 1.Six months' salary in compensation - Kshs. 80,166
  2. 2.One month's salary in lieu of notice - Kshs. 13,361
  3. 3.Prorata leave pay for two completed months in 2014 - Kshs. 1,559
  4. 4.Total award of Kshs. 95,086
  5. 5.Respondent to issue the Claimant with a certificate of service
  6. 6.Respondent to pay the costs of the case
  7. 7.Award to attract interest at court rates from the date of the award until payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 12

Cases cited (1)

  • Rashid Jeneby v Prime Bank
    [2015] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; Sections 41, 43, 45)

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, "Onesmus Nzwili v Agro Irrigation & Pump Service Ltd [2016] KEELRC 1154 (KLR)", Case Analysis (2016). Cause No 1051 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1154/eng@2016-05-27

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