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Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No. 1564 of 2014· [2018] KEELRC 205 (KLR)

Farida Iminza Chanzu v Tausi Apartments Management Trustees Limited [2018] KEELRC 205 (KLR)

Employment and Labour Relations Court
5 December 2018
775 words in judgment
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The bottom line

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Kenya's Employment Court ruled that an employer who fires a worker without giving reasons or a hearing must pay compensation, even without proof of misconduct.

What this practically means

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Executive summary

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The claimant, Farida Iminza Chanzu, sued Tausi Apartments Management Trustees Limited alleging unfair termination of her employment as Caretaker from 2005 until 31 January 2014, contending that the termination letter of 11 February 2014 signed by Babu Sagoo gave no reasons and that she was never accorded a hearing. She claimed payments totalling KShs 252,000. The respondent denied employing her, but its defence admitted in paragraph 7 that it employed her in 2006 and alleged she was involved in fraud by failing to remit monies collected from tenants for water and electricity bills, and that notice was paid in lieu. The respondent called no witness and adduced no evidence. The court framed two issues: whether the termination was fair and lawful, and whether the claimant was entitled to the remedies sought. Relying on Sections 43, 41 and 45(2) of the Employment Act, the court found that the termination letter assigned no reasons, no disciplinary process was undertaken, and the employer failed to discharge its burden of proving valid reasons and fair procedure. The termination was held unfair and unjustified. The court awarded six months' salary (KShs 72,000) as compensation for unfair termination, three years' leave allowance (KShs 36,000), and service pay for nine years (KShs 54,000), totalling KShs 162,000, plus costs and interest at court rates from the date of judgment. Judgment was delivered by Hellen S. Wasilwa J on 5 December 2018.

Key legal issues

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01

Whether the Claimant's termination was fair and lawful

Holding

The termination was unfair and unjustified - no reasons were assigned in the termination letter and no disciplinary process was followed.

Reasoning

The termination letter gave no reasons and the claimant was not taken through any disciplinary process. Under Sections 43 and 45 of the Employment Act, the employer must prove valid and fair reasons and fair procedure. The respondent, despite alleging fraud, called no witness and adduced no evidence to counter the claimant's case, so the termination failed both the substantive and procedural fairness tests.

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02

Whether the Claimant is entitled to the remedies sought

Holding

The claimant was awarded 6 months' salary as compensation, 3 years' leave allowance and service pay for 9 years, totaling KShs 162,000, plus costs and interest.

Reasoning

Having found the termination unfair, the court exercised its discretion under the Employment Act to award compensation equivalent to 6 months' salary at KShs 12,000 per month, leave allowance calculated at 3 years, and service pay for 9 years at 15 days' salary per year worked, together with costs and interest at court rates.

p. 2

Legal principles established

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  • Under Section 43 of the Employment Act, an employer bears the burden of proving the reason for termination; failure to do so renders the termination unfair.
  • Termination without valid reason and without due process constitutes unfair termination under Section 45 of the Employment Act.

Court orders

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  1. 1.6 months' salary as compensation for unfair termination (KShs 72,000)
  2. 2.3 years' leave allowance (KShs 36,000)
  3. 3.Service pay for 9 years (KShs 54,000)
  4. 4.Total award of KShs 162,000
  5. 5.Respondent to pay costs of the suit plus interest at court rates from the date of judgment

Authorities

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Legislation

  • Employment ActSection 43(1)-(2)
  • Employment ActSection 41
  • Employment Act 2007Section 45(2)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007)

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, "Farida Iminza Chanzu v Tausi Apartments Management Trustees Limited [2018] KEELRC 205 (KLR)", Case Analysis (2018). Cause No. 1564 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/205/eng@2018-12-05

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