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ELRCPartially AllowedMemorandum of Claim dated 25th February 2014 (as amended on 4th June 2014)· [2017] KEELRC 1951 (KLR)

John Nyasaka Okech v Kenya Medical Research Institute [2017] KEELRC 1951 (KLR)

Employment and Labour Relations Court
19 January 2017
2,780 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan employer who fires a worker without a proper hearing loses in court, even when the reason for dismissal may have been valid.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from May 2007 on annual renewable contracts and last earning Shs.32,000, had his contract terminated on 25th February 2011 before expiry, following incidents of alleged reckless driving during a staff trip to Maseno on 22nd January 2011. He claimed declaration of unfair termination, Kshs.433,764 (payment for the unexpired contract), interest, costs and a certificate of service. The Respondent denied unfair termination, asserting the Claimant was relieved for poor work performance, paid notice and gratuity for completed contracts. The court held that Section 41 of the Employment Act was not complied with: no charges were framed, the Claimant was not invited to the disciplinary meeting of 14th February 2011, and his written explanations were merely part of investigations, not a hearing. The Respondent misapprehended Section 41 by arguing the Claimant bore the burden of proving unfairness and that the absence of union membership or English comprehension mattered. Although the Respondent may have had a valid reason, its failure to give a hearing meant validity was never proved; the termination was declared unfair on both procedural and substantive grounds. Remedies: gratuity of Shs.37,171.20 for eight months of the incomplete contract at an uncontested 15% rate, and Shs.20,650.70 for 20 days pro-rata leave, totalling Shs.57,821.90. Payment for the unexpired term was refused because the Employment Act provides no such remedy and the Claimant's admitted reckless driving pre-empted termination. The Respondent was ordered to pay costs, with interest at court rates from the date of judgment.

Key legal issues

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01

Procedural fairness under Section 41 of the Employment Act

Holding

Termination was unfair because the Claimant was not invited to the disciplinary meeting, no charges were framed, and he was not given the opportunity to be accompanied or heard

Reasoning

Section 41 obliges the employer to explain termination reasons to the employee in a language he understands and to allow him to be accompanied by a fellow employee or union representative. The employer bears responsibility to arrange and notify the meeting. The Claimant's two written explanations were part of investigations only, not a hearing. No evidence showed he was informed of complaints and asked to explain. The meeting of 14th February 2011 considered statements in his absence. Section 35 cited by the Respondent concerns notice only, not procedure.

p. 4
02

Validity of reason for termination under Section 43

Holding

Although there may have been a valid reason based on the evidence, the failure to comply with Section 41 meant validity was never proved, rendering the termination unfair for want of both procedure and valid reason

Reasoning

The court held that where the employer fails to frame charges or give a hearing, the validity of reasons cannot be established despite evidence adduced in court. The Claimant admitted dangerous driving incidents, but that admission could not cure the procedural breach. The termination was therefore unfair on both procedural and substantive grounds, warranting the declaration sought.

p. 5
03

Burden of proof under Section 47(5)

Holding

The burden of proving unfair termination rests on the employee, while the burden of justifying grounds for termination rests on the employer

Reasoning

The court invoked Section 47(5) to allocate burdens: the employee proves unfair termination occurred, while the employer must justify the grounds. The Respondent's arguments that the Claimant was under an obligation to show unfairness, was not in a union, or understood English, demonstrated a misapprehension of Section 41's requirements, which apply regardless of union membership.

p. 4
04

Remedies: gratuity, leave and unexpired term

Holding

Claimant awarded gratuity for 8 months of the incomplete contract at 15% and 20 days pro-rata leave, but refused payment for the unexpired contract term as the termination was pre-empted by his own reckless driving

Reasoning

Gratuity was unpaid only for the contract running July 2010 to February 2011; the 15% rate from submissions was uncontested, yielding Shs.37,171.20. RW2 admitted 20 days pro-rata leave entitlement of Shs.20,650.70. Payment for the unexpired term is not provided by the Employment Act; compensation lies under Section 49, which was refused because the Claimant admitted the reckless driving that prompted termination.

p. 5

Legal principles established

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  • An employer must, before termination, explain reasons to the employee in a language the employee understands, and arrange and notify a meeting where the employee may be accompanied by a fellow employee or union representative of his choice
  • Written explanations obtained from an employee do not constitute compliance with Section 41; they form part of investigations and cannot substitute a disciplinary hearing
  • Where an employer fails to frame charges or give a hearing under Section 41, the validity of reasons for termination is not proved even if evidence could have supported them
  • Employment contracts are terminable and the Act provides no payment for the unexpired term; the remedy is compensation under Section 49

Court orders

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  1. 1.Declaration that the termination of the Claimant's contract was unfair
  2. 2.Award of gratuity of Shs.37,171.20 for 8 months from July 2010 to February 2011
  3. 3.Award of Shs.20,650.70 in lieu of 20 days pro-rata leave
  4. 4.Respondent to pay the Claimant's costs
  5. 5.Decretal sum to attract interest at court rates from date of judgment

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 41(1)
  • Employment ActSection 41(2)
  • Employment ActSection 43
  • Employment ActSection 44(3) and (4)
  • Employment ActSection 35
  • Employment ActSection 47(5)
  • Employment ActSection 49
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over unfair termination claims under the Employment Act

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 Nyasaka Okech v Kenya Medical Research Institute [2017] KEELRC 1951 (KLR)", Case Analysis (2017). Memorandum of Claim dated 25th February 2014 (as amended on 4th June 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2017/1951/eng@2017-01-19

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