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ELRCPartially Allowed· [2016] KEELRC 1450 (KLR)

Elias Omolo Oyoo v Mumias Sugar Co Ltd (Cause 312 of 2015) (Civ) [2016] KEELRC 1450 (KLR)

Employment and Labour Relations Court
18 February 2016
1,361 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A Kenyan court ruled an indefinite employee suspension unfair, ordered it withdrawn and pay reinstated, but allowed lawful disciplinary proceedings to continue.

What this practically means

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Executive summary

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The Claimant, a Fermentation Technician employed by the Respondent in February 2012, was suspended by letter dated 27th March 2015 to facilitate investigations into suspected fraudulent activities in the ethanol sales process. He moved the court seeking orders restraining the Respondent from terminating his employment by way of redundancy or otherwise without following due process under the Employment Act, 2007, pending hearing of his claim. He complained that the suspension was open-ended, exceeding the 21 days allowed under the terms and conditions of service; that it was signed by the Managing Director rather than his immediate supervisor as the disciplinary procedure required; and that he had no avenue of appeal since the Managing Director who suspended him was the appellate authority. He also feared unprocedural redundancy or termination, as had befallen other similarly suspended employees. The Respondent opposed, citing its management prerogative to discipline employees, arguing the Claimant failed the Giella v Cassman Brown test, was on full pay, had not disclosed a previously filed and withdrawn similar suit (Cause No. 294 of 2015), and had since been issued a notice to show cause. The court declined to address the withdrawn suit, noting it was never served and its pleadings were not availed. Applying Rebecca Ann Maina v JKUAT and following its own decision in Gregory Otieno Owuoth v Mumias Sugar Ltd (Cause No. 295 of 2015), the court held the suspension irregular and unfair, ordered its immediate withdrawal and reinstatement of any withheld salary or benefits, while making clear that a lawful disciplinary process could continue. Costs were awarded in the cause.

Key legal issues

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01

Court's intervention in internal disciplinary processes

Holding

The Claimant's case fell within the limited circumstances where the court will intervene in an employer's disciplinary process, because the suspension was open-ended beyond the permitted 21 days and issued by the wrong officer.

Reasoning

The court accepted the Rebecca Ann Maina authority that intervention is to correct irregularities, not to halt discipline. The terms and conditions of service allowed suspension for 21 days and required the immediate supervisor to issue the suspension letter. The Claimant had been suspended for 4 months with no appeal avenue since the Managing Director who suspended him was the appellate authority. The suspension was therefore irregular and unfair and was ordered withdrawn, without barring a lawful continuation of the disciplinary process.

p. 3
02

Withdrawn earlier suit (Cause No. 294 of 2015) and abuse of process

Holding

The court declined to determine the non-disclosure/abuse of process argument because the earlier withdrawn case was never served and its pleadings were not before the court.

Reasoning

The Respondent argued the Claimant had filed and withdrawn a similar suit, making this claim an afterthought and abuse of process. The court found the earlier cause was never served on the Respondent and the pleadings were not availed to the court, so it declined to belabour the issue. This disposed of the abuse-of-process objection without a finding on the merits.

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03

Timing of the notice to show cause

Holding

The notice to show cause, issued only after the suit was filed, did not cure the defective indefinite suspension.

Reasoning

The Respondent contended the Claimant had since been issued a notice to show cause. The court noted the show cause letter was dated 4th September 2015 and was issued only after the suit was filed. It held that this did not affect the fact that the Claimant had been placed on indefinite suspension exceeding the 21 days permitted by the Respondent's disciplinary procedure, so the irregularity persisted.

p. 3

Legal principles established

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  • Where an employee complains about the legitimacy of a disciplinary process marred with irregularities, the court will intervene not to stop the process altogether but to put things right.
  • It is unfair to keep an employee on suspension beyond the period allowed by the employer's own disciplinary procedure.

Court orders

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  1. 1.The letter of suspension of the Claimant is withdrawn with immediate effect
  2. 2.Any salary or benefit withheld pursuant to the letter of suspension shall be reinstated to the Claimant forthwith
  3. 3.The withdrawal of the letter of suspension is not a bar to the disciplinary action continuing, provided it complies with the law and the Respondent's disciplinary procedure
  4. 4.The costs of the application shall be in the cause

Authorities

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Legislation

  • Employment Act

Cases cited (11)

  • Giella -vs- Casman Brown & Co. LTD
    E.A.LR 1973
  • Alfred Nyungu Kimungi -vs- Bomas of Kenya
    Industrial Cause No. 620 of 2013 eKLR
  • Prof. Gitile J Naituli -vs- Multi Media University College & Another
    Industrial Cause No. 1200 of 2012 eKLR
  • Dorothy Ndavi -vs- Board of Management of Kenya High School & 3 others
    Industrial Cause No. 2067 of 2013 eKLR
  • Rebecaa Ann Maina & 2 Others -vs- JKUAT
    Industrial Cause No. 1789 of 2013 eKLR
  • David Kimei -vs- Energy Regulatory Commission
    Industrial Cause No. 1492 of 2011 eKLR
  • Joseph Mutuura Mberia and another -vs- the Council of JKUAT
    Industrial Cause of 2013 eKLR
  • Mrao Ltd -vs- First American Bank of Kenya Ltd & 2 Others
    Civil Appeal No. 39 of 2002 eKLR
  • Saflo -vs- Lloyd Masika Limited
    eKLR 2009
  • Gladys Boss Shollei -vs- Judicial Service Commission
    Petition No. 39 of 2013 eKLR
  • Gregory Otieno Owuoth -v- Mumias Sugar Ltd
    Cause No. 295 of 2015
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act, 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Elias Omolo Oyoo v Mumias Sugar Co Ltd (Cause 312 of 2015)  (Civ) [2016] KEELRC 1450 (KLR)", Case Analysis (2016). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1450/eng@2016-02-18

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