Philip Chege Karanja v MTN Business (K) Limited [2016] KEELRC 1465 (KLR)
The bottom line
#Kenya's Employment Court ruled MTN unfairly fired a Credit Manager for poor performance without proving it or giving him a proper hearing, awarding over Kshs.1 million.
What this practically means
#Executive summary
#Key legal issues
#Validity of the reason for termination (poor performance)
No valid reason was established; the termination was substantively unfair
The termination letter cited poor performance with reference only to verbal warnings without details. The claimant had positive prior appraisals and was previously among the best employees. A warning is a disciplinary action, not a remedial measure, and the employer failed to prove poor performance or assist the employee.
Procedural fairness under Section 41 of the Employment Act
Termination was procedurally unfair as no capability hearing was held
Section 41 procedural fairness covers poor performance. The decision to terminate had already been made before the claimant sought a meeting, and there was no evidence he was given an opportunity to respond to allegations of poor performance or misconduct. The court restricted itself to the ground in the termination letter.
Entitlement to remedies
Claimant awarded 7 months' salary as compensation plus one month's salary in lieu of notice
Having found the termination substantively and procedurally unfair, the court exercised its discretion under the remedies framework, considering the claimant's length of service (since 2004) and the respondent's conduct in the termination process, awarding 7 months' salary rather than the 12 sought.
Legal principles established
#- An employer relying on poor performance must prove its existence and demonstrate opportunities given to the employee to improve
- Where a consistently good employee's performance suddenly dips, the employer must investigate why and assist the employee to take remedial measures
- Disciplinary action based on poor performance must be preceded by a capability hearing under Section 41 of the Employment Act
Court orders
#- 1.7 months' salary (Kshs.937,216) as damages for unlawful termination
- 2.1 month's salary in lieu of notice (Kshs.133,888), total award Kshs.1,071,104
- 3.Claimant awarded costs of the case
- 4.Award to attract interest at court rates from the date of the award until payment in full
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the Labour Relations Act (first-instance employment cause)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Philip Chege Karanja v MTN Business (K) Limited [2016] KEELRC 1465 (KLR)", Case Analysis (2016). Cause No 1536 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1465/eng@2016-02-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.