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ELRCPartially Allowed· [2016] KEELRC 1194 (KLR)

John Njiraini Mwaniki v Kenya Power & Lighting Company Limited [2016] KEELRC 1194 (KLR)

Employment and Labour Relations Court
13 May 2016
2,117 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled Kenya Power unfairly terminated a long-serving employee who resigned during a health crisis, awarding him Sh1 million.

What this practically means

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Executive summary

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The plaintiff, employed by the defendant in August 1985 and promoted over the years to Clerk Grade IIB, resigned by a letter dated 07.02.2003 while, according to medical evidence, suffering a hypertensive episode that left him delirious, disoriented and unable to control his actions. Two days later he withdrew the resignation from hospital, but the defendant had already accepted it by its letter of 14.02.2003 and recovered three months' salary in lieu of notice. Internal appeals and a union intervention in November 2004 failed. In the amended plaint the plaintiff sought a declaration that his dismissal was unlawful or unfair, general damages, Kshs. 722,472.00 as damages for unfair termination, Kshs. 511,751.00 severance pay, costs and interest. The defendant sought dismissal of the suit. The court framed two issues: whether the termination was unfair, and whether the plaintiff was entitled to the remedies prayed. It held that the resignation was vitiated by the plaintiff's health condition and had been withdrawn before acceptance, that the defendant acted unreasonably and negligently in accepting and upholding the purported resignation, and that the termination was unfair for want of a valid or genuine reason. It further held that the Employment Act, 2007 merely codified pre-existing principles of unfair termination. The court awarded general damages of Kshs. 1,000,000.00 with interest on default, a declaration of unfair, negligent and unreasonable termination, and costs; it refused the statutory damages claim and the severance pay claim.

Key legal issues

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01

Whether the termination was unfair

Holding

The termination was unfair for want of a valid or genuine reason; the resignation was vitiated by the plaintiff's hypertensive condition which left him unable to control his actions, and the defendant unreasonably accepted the resignation even after it had been withdrawn.

Reasoning

The plaintiff wrote the resignation on 07.02.2003 and withdrew it on 09.02.2003 before acceptance. Medical evidence established that hypertension rendered him delirious and not in control of his actions. The court found no valid contract to terminate because the plaintiff lacked capacity when resigning, and the defendant unreasonably ignored the established health predicament, including upholding the termination on appeal. Pre-2007 law did not preclude a finding of unfairness.

p. 4
02

Whether the defendant owed and breached a duty of care in removing the plaintiff from employment

Holding

The defendant breached its duty of care by negligently accepting and upholding a resignation vitiated by the plaintiff's mental health status.

Reasoning

The court held that the defendant owed the plaintiff a duty of care not to negligently remove him from employment. Despite overwhelming medical evidence and the withdrawal of the resignation, the defendant accepted the resignation and upheld the termination on internal appeal. That unreasonableness and negligence caused the plaintiff serious injury including loss of employment, justifying general damages of Kshs. 1,000,000.00.

p. 4
03

Whether the plaintiff was entitled to the specific damages and severance pay claimed

Holding

General damages of Kshs. 1,000,000.00 awarded; the statutory damages claim and severance pay claim failed.

Reasoning

Considering 17 years of service and the defendant's unreasonableness, the court awarded general damages for unfair, negligent and unreasonable termination. However, the claim of Kshs. 722,472.00 was anchored on section 49(1)(c) of the Employment Act, 2007, which was not in operation at the time of the cause of action, and the severance pay claim of Kshs. 511,751.00 was not established on its basis.

p. 4

Legal principles established

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  • The Employment Act, 2007 only codified principles of unfair termination; before the Act, courts could still find unfair termination on grounds of unreasonableness or want of genuine reasons.

Court orders

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  1. 1.Declaration that the termination of the plaintiff's contract of employment with the defendant was unfair as it was negligent and unreasonable
  2. 2.The defendant to pay the plaintiff a sum of Kshs. 1,000,000.00 by 01.07.2016 failing interest to be payable thereon from the date of judgment till full payment
  3. 3.The defendant to pay the plaintiff's costs of the suit

Authorities

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Legislation

  • Employment Act, 2007section 49(1)(c)

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, "John Njiraini Mwaniki v Kenya Power & Lighting Company Limited [2016] KEELRC 1194 (KLR)", Case Analysis (2016). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1194/eng@2016-05-13

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