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ELRCPartially AllowedNot stated in judgment (originally filed at the High Court; transferred to ELRC)· [2016] KEELRC 1792 (KLR)

Hassan Magiya Kiage v Attorney General & another [2016] KEELRC 1792 (KLR)

Employment and Labour Relations Court
15 January 2016
2,002 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan employer cannot fire a worker awaiting a criminal case verdict it promised to wait for, and was ordered to pay 12 months' salary.

What this practically means

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Executive summary

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The Claimant, Finance Manager of the Tourism Finance Corporation (2nd Respondent), was interdicted on half pay in January 2010 after being charged before the Anti-Corruption Court over the award of a cleaning services tender to Magaki Cleaning Services, and his employment was terminated on 30th June 2010 before the criminal case was concluded. He was acquitted on 22nd July 2010 under Section 210 of the Criminal Procedure Code. He sued for special damages of Kshs.39,255,706.55 and general, aggravated and exemplary damages for unfair termination, malicious prosecution and false imprisonment. The court framed four issues: valid reason, fair procedure, entitlement to reliefs, and its jurisdiction over malicious prosecution and false imprisonment. The court found the 2nd Respondent had itself exonerated the Claimant of conflict of interest, and since the interdiction was expressly on half pay pending the criminal case, the Corporation was bound to await its outcome; termination before the acquittal was for no valid reason (contravening Sections 43 and 45(1) and (2)(a) of the Employment Act) and procedurally unfair, as the Claimant was not notified, given no chance to show cause and not taken before a disciplinary committee (contravening Sections 41 and 45(2)(c)). The court declined the malicious prosecution and false imprisonment claims for want of jurisdiction, holding the prosecution was instigated by losing tender competitors, not the employer, and that any such claim lies in the High Court Civil Division. The Claimant was awarded the maximum 12 months' gross salary compensation of Kshs.1,693,107.00 and Kshs.564,369.00 for lost salary during interdiction, totalling Kshs.2,257,476.00, with interest at court rates from filing until payment in full and costs of the suit, jointly and severally against the 1st and 2nd Respondents.

Key legal issues

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01

Valid reason for termination

Holding

Termination was for no valid reason; the employer had exonerated the Claimant and was bound to await the criminal case outcome as its interdiction was expressly tied to it.

Reasoning

The Corporation itself investigated complaints of conflict of interest over the tender award and found them unfounded. It interdicted the Claimant on half pay expressly pending the criminal case, and an acting Finance Manager was appointed only pending conclusion of that case. Terminating the Claimant about a month before his acquittal was therefore unjustifiable and contravened Section 43 as read with Section 45(1) and (2)(a) of the Employment Act, 2007.

p. 3
02

Fair procedure

Holding

Termination was procedurally unfair - no notice, no opportunity to show cause, no disciplinary hearing.

Reasoning

The evidence from the 2nd Respondent itself established that the Claimant received no notification of intended termination, was never asked to show cause, and was never brought before a Board disciplinary committee. The employer admitted conducting its own investigations and exonerating him. This violated Section 41 as read with Section 45(2)(c) of the Employment Act, 2007.

p. 3
03

Reliefs and quantum

Holding

Claimant awarded maximum 12 months' gross salary compensation and salary lost during interdiction; reinstatement not awarded as it was not sought in the Plaint.

Reasoning

Under Section 49(1)(c) of the Employment Act the court may award maximum compensation for wrongful and unlawful loss of employment. Considering the Section 49(4) factors - the exoneration, non-contribution to the termination, long service, diminished employment prospects, and that reinstatement was not pleaded - the court awarded the equivalent of 12 months' gross salary (Kshs.1,693,107.00) plus lost half-pay salary during interdiction (Kshs.564,369.00).

p. 4
04

Jurisdiction over malicious prosecution and false imprisonment

Holding

The ELRC has no jurisdiction; the prosecution was instigated by losing tender competitors, not the employer.

Reasoning

The evidence showed the 2nd Respondent did not contribute to the arrest and prosecution; the complainants to KACC were aggrieved losing bidders, and the employer had exonerated the Claimant. Since the employer played no part, the claim for malicious prosecution and false imprisonment against the Attorney General fell outside the court's jurisdiction and belonged to the High Court Civil Division.

p. 4

Legal principles established

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  • An employer who interdicts an employee on half pay expressly pending the outcome of a criminal case is bound to await that outcome before terminating employment; terminating before acquittal is for no valid reason and contrary to Sections 43 and 45 of the Employment Act.
  • Termination without notification of the reasons, without a chance to show cause and without a disciplinary hearing contravenes Sections 41 and 45(2)(c) of the Employment Act.
  • The Employment and Labour Relations Court has no jurisdiction over claims of malicious prosecution and false imprisonment not involving the employer.

Court orders

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  1. 1.Award of Kshs.1,693,107.00 being compensation equivalent of 12 months gross salary for unlawful and unfair termination
  2. 2.Award of Kshs.564,369.00 being lost salary during the interdiction period January 2010 to June 2010
  3. 3.Total award of Kshs.2,257,476.00 against the 1st and 2nd Respondents jointly and severally
  4. 4.Interest on the award at court rates from the date of filing suit till payment in full
  5. 5.Costs of the suit

Authorities

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Legislation

  • Criminal Procedure CodeSection 210
  • Anti-Corruption and Economic Crimes Act, No. 3 of 2003Section 42(3) as read with Section 48(1); Section 62(1)
  • Employment Act, 2007Sections 41, 43, 45(1) and (2)(a) and (c), 49(1)(c), 49(4)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes; held to exclude claims of malicious prosecution and false imprisonment, which were remitted to the High Court Civil Division

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, "Hassan Magiya Kiage v Attorney General & another [2016] KEELRC 1792 (KLR)", Case Analysis (2016). Not stated in judgment (originally filed at the High Court; transferred to ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1792/eng@2016-01-15

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