Farida Iminza Chanzu v Tausi Apartments Management Trustees Limited [2018] KEELRC 205 (KLR)
The bottom line
#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
#Executive summary
#Key legal issues
#Whether the Claimant's termination was fair and lawful
The termination was unfair and unjustified - no reasons were assigned in the termination letter and no disciplinary process was followed.
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.
Whether the Claimant is entitled to the remedies sought
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.
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.
Legal principles established
#- 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
#- 1.6 months' salary as compensation for unfair termination (KShs 72,000)
- 2.3 years' leave allowance (KShs 36,000)
- 3.Service pay for 9 years (KShs 54,000)
- 4.Total award of KShs 162,000
- 5.Respondent to pay costs of the suit plus interest at court rates from the date of judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#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.