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ELRCPartially AllowedCause No. 1438 of 2014· [2016] KEELRC 1544 (KLR)

Grace Mediva Asamba v Africa Apparels EPZ Limited [2016] KEELRC 1544 (KLR)

Employment and Labour Relations Court of Kenya
11 February 2016
1,537 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenyan employers cannot fire staff for poor performance without written records of set targets, proof of support given, and fair procedure.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent EPZ garment manufacturer as a Machinist, first as a casual from 2006 and later under successive fixed term contracts, the last running from 2nd January 2014 to 30th June 2014, was terminated on 30th May 2014 on grounds of failure to meet production targets and poor quality work. She claimed compensation for the unexpired term of the contract, compensation for unfair termination, and a certificate of service. The Respondent defended the termination as justified by the Claimant's failure to meet a target of 150 pieces per hour, verbal warnings, wastage and costly airlifted shipments. The court found that under Section 41 of the Employment Act an employer alleging poor performance must produce records of set targets and show the support given to the employee before termination; the Respondent produced no record of how the target was set against comparable employees and relied only on verbal warnings. The termination therefore lacked a valid and justifiable reason and was unfair. Compensation of two months' pay under Section 49 of the Employment Act, totalling Kshs. 23,058.00, was awarded. The claim for the unexpired term of the contract was declined as notice pay of one month had already been paid, making the claim a double payment. No costs were awarded as none was claimed. Judgment was delivered at Nairobi on 11th February 2016 by M. Mbaru, J.

Key legal issues

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01

Validity of termination on grounds of poor performance

Holding

The termination lacked a valid and justifiable reason as the Respondent failed to demonstrate records of performance targets, support mechanisms given to the employee, or notice based on a documented poor performance record

Reasoning

Section 41 of the Employment Act requires an employer, before terminating for poor performance, to explain the reasons to the employee with a fellow employee or union representative present. Beyond procedure, where targets are set the employer must produce the record and show efforts made to support the employee. The Respondent produced no record of how the 150-pieces-per-hour target was set relative to comparable employees, and relied only on verbal warnings. Poor performance is a serious allegation carrying a duty to support the employee, which the Respondent failed to discharge.

p. 2
02

Compensation for the unexpired term of a fixed term contract

Holding

The claim for the unexpired term was declined because the Claimant was paid one month's notice, which under a fixed term contract terminable by 28 days' notice made the unexpired-term claim a double payment

Reasoning

The Claimant's fixed term contract was due to expire in about a month and was terminable by either party on 28 days' notice. Since she was terminated and paid one month's notice pay, claiming additionally for the unexpired term would amount to double payment. Compensation for the unfairness of termination is instead addressed under Section 49 of the Employment Act.

p. 3
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Quantum of compensation for unfair termination

Holding

Two months' pay in compensation was awarded under Section 49 of the Employment Act, computed on the contractual salary

Reasoning

Upon finding no genuine cause for termination, the court applied Section 49 of the Employment Act and found two months' pay appropriate. The court scrutinised the payslip and the fixed term contract to determine the correct monthly salary, noting the gross terminal payment of Kshs. 18,807.15 included notice pay and leave days, and computed the award on the due salary.

p. 3

Legal principles established

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  • It is not sufficient for an employer to simply allege poor performance; the employer must produce records of set targets, show the support given to the employee, and issue notice based on the documented poor performance record before termination can be justified

Court orders

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  1. 1.Judgment entered for the Claimant in the sum of Kshs. 23,058.00 being two months' pay as compensation for unfair termination
  2. 2.The claim for payment for the unexpired term of the fixed term contract declined
  3. 3.No costs awarded as none was claimed

Authorities

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Legislation

  • Employment ActSection 41(1)
  • Employment ActSection 42(1)
  • Employment ActSection 49
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance unfair termination claim)

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, "Grace Mediva Asamba v Africa Apparels EPZ Limited [2016] KEELRC 1544 (KLR)", Case Analysis (2016). Cause No. 1438 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1544/eng@2016-02-11

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