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ELRCPartially AllowedCause No. 94 of 2014· [2016] KEELRC 1179 (KLR)

Jessica Mwanzia v Actionaid International Kenya [2016] KEELRC 1179 (KLR)

Employment and Labour Relations Court
6 May 2016
2,466 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 awarded a former ActionAid manager over Kshs 1.5 million because her dismissal letter was vague and she was never given a fair hearing.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Project Manager on a three-year contract from 15 December 2011, sued for damages for unlawful and unfair termination of her employment. Her contract was terminated effective 31 October 2013 for breach of Sections 8.3.2 (c), (d), (u) and (v) of the Respondent's Employee Handbook. She claimed notice pay, October 2013 salary and twelve months' compensation, contending that she was never informed of the allegations against her, never given an opportunity to be heard, and that her appeal was never considered. The Respondent asserted that she was guilty of poor performance, negligence and insubordination that led to withdrawal of funding by the Bill Gates programme, and that internal procedures were followed. The court framed three issues: valid reasons, due process, and remedies. On the first, the court held that the termination letter did not specify which of the cited misconduct items the Claimant committed, and since Section 43 requires the employer to prove the reasons for termination, the dismissal was not anchored on proper reasons. On the second, the court found the Respondent had not followed the procedure in Section 41 of the Employment Act nor its own handbook disciplinary procedure, rendering the termination unfair under Section 45(2). The Claimant was awarded one month's notice pay, October 2013 salary, and eight months' salary as compensation (Kshs. 1,386,537 balance after a deduction of Kshs. 223,463), with costs to the Claimant. The claim thus partially succeeded, the twelve months' compensation sought being reduced to eight months.

Key legal issues

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01

Whether there were valid reasons to warrant termination of the Claimant

Holding

The termination was not anchored on proper reasons under Section 43 of the Employment Act because the termination letter did not state which of the cited misconduct provisions the Claimant was said to have breached

Reasoning

The termination letter cited Sections 8.3.2 (c), (d), (u) and (v) of the Employee Handbook but did not specify which of the four items the Claimant committed or the exact reasons for termination. Since the employer bears the burden of proving reasons for termination and proof requires clarity of those reasons, the court found the dismissal was not based on proper reasons as envisaged under Section 43.

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02

Whether due process was followed before the Claimant's termination

Holding

The Respondent did not follow the procedure required by Section 41 of the Employment Act or its own disciplinary procedure at Section 8.6 of the handbook, rendering the termination unfair under Section 45(2)

Reasoning

Section 41 requires the employer to explain the reasons for termination to the employee and hear and consider her representations before termination on grounds of misconduct or poor performance. The Respondent's own handbook Section 8.6 prescribed a disciplinary procedure including warnings, suspension and inquiry. The court found that the Respondent never followed this procedure before terminating the Claimant, so the termination was unfair and unjustified under Section 45(2).

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What remedies the Claimant is entitled to in the circumstances

Holding

The Claimant was awarded one month's notice pay, salary for October 2013, eight months' salary as compensation for unlawful termination, and costs

Reasoning

Having found the termination unfair and unjustified, the court found for the Claimant and awarded one month's salary in lieu of notice at Kshs. 161,000, salary for October 2013 at Kshs. 161,000, and eight months' salary as compensation for unlawful termination amounting to Kshs. 1,288,000 less Kshs. 223,463, with the balance of Kshs. 1,386,537 to be paid, plus costs of the suit.

p. 6

Legal principles established

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  • Under Section 43 of the Employment Act, the employer bears the burden of proving the reasons for termination, and reasons must be clearly stated in the termination letter
  • A termination is unfair where the employer fails to prove a valid reason, a fair reason, and a fair procedure under Section 45(2)

Court orders

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  1. 1.One month salary in lieu of notice of Kshs. 161,000
  2. 2.Salary for the month of October 2013 of Kshs. 161,000
  3. 3.Eight months' salary as compensation for unlawful termination (Kshs. 1,288,000 less Kshs. 223,463), balance Kshs. 1,386,537 to be paid
  4. 4.Respondent to pay costs of the suit

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 42(1)
  • Employment ActSection 43
  • Employment ActSection 44(3) and (4)
  • Employment ActSection 45(2)
  • ActionAid International Kenya Employee HandbookSection 8.3.2 (c), (d), (u), (v) and (f); Section 8.6

Cases cited (2)

  • CMC Aviation Limited vs Captain Mohammed Noor
    Civil Appeal No. 199 of 2013
  • George Onyango Akuti vs G4S Security Kenya Limited
    Industrial Case Number 107 of 2013
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Sections 41, 43 and 45(2))

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, "Jessica Mwanzia v Actionaid International Kenya [2016] KEELRC 1179 (KLR)", Case Analysis (2016). Cause No. 94 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1179/eng@2016-05-06

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