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ELRCPartially AllowedCause No. 1659 of 2011 (Memorandum of Claim dated 15/09/2011)· [2018] KEELRC 216 (KLR)

Elizabeth Mwikali Mwendwa v Kenya Investment Authority [2018] KEELRC 216 (KLR)

Employment and Labour Relations Court of Kenya
20 December 2018
2,466 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled you cannot fire someone as a 'probationer' after 12 months — this employer paid nearly KShs 1 million for doing just that.

What this practically means

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Executive summary

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The claimant, employed by the respondent on 06/08/2010 as an Executive Administrative Assistant (Grade 7) on six months' probation, was downgraded to Grade 5 by letter dated 08/08/2011 and her employment terminated by letter dated 02/09/2011 on the ground that she had not produced her original degree certificate to enable confirmation of employment. She sought compensation for the downgrade, damages for demotion, compensation for garnished salary and general damages. The respondent maintained she was on probation, that failure to produce the certificate breached her appointment conditions, and that Sections 41, 43 and 45 of the Employment Act do not apply to probationary contracts. The court framed three issues: whether the claimant was on probation at termination, whether the termination was lawful, and what remedies were due. Relying on Section 42(2), it held that probation may run a maximum of twelve months and, having been employed on 06/08/2010, the claimant could not be deemed on probation beyond 08/08/2011; there was no express communication of any deferment of confirmation. She was therefore entitled to the procedural protections of Sections 41 and 45, and the respondent neither invited her to a disciplinary hearing nor proved a valid and fair reason for termination. The court found the termination unfair and unjustified and awarded one month's salary in lieu of notice (137,040/=) plus six months' salary as compensation for unlawful termination (822,240/=), total 959,280/=, with costs and interest at court rates from the date of judgment. The heads claiming damages for downgrade, demotion and garnished salary were not awarded. Dated and delivered 20 December 2018 before Lady Justice Hellen Wasilwa.

Key legal issues

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01

Whether the Claimant was still on probation when terminated on 02/09/2011

Holding

The claimant was not on probation at termination; the statutory maximum probation of 12 months had expired on 08/08/2011

Reasoning

She was employed on 06/08/2010 on six months' probation. Section 42(2) caps probation at six months, extendable by a further six months with the employee's agreement, i.e. a maximum of 12 months. She was never terminated or informed of extended probation by 08/08/2011, and the court found no express communication of any deferment of confirmation. By 02/09/2011 she had passed the statutory maximum and could not be deemed on probation.

p. 3
02

Whether the termination was lawful

Holding

The termination was unfair and unjustified because no valid reason was proved and no hearing was accorded

Reasoning

Having ceased to be on probation, the claimant was entitled to the protections of Sections 41 and 45 of the Employment Act. There was no indication she was invited to a disciplinary hearing or informed of the reasons the respondent was considering terminating her services. Under Section 45, an employer must prove a valid and fair reason and fair procedure; the respondent failed to do so, having instead relied on non-confirmation of a probationary contract that had legally expired.

p. 4
03

Whether the claimant was entitled to the remedies sought

Holding

The court awarded notice pay and six months' salary as compensation for unlawful termination, plus costs and interest, but did not award the damages for downgrade/demotion or general damages sought

Reasoning

Relying on the statutory remedies framework, the court limited the award to one month's salary in lieu of notice and six months' salary as compensation for unlawful termination, computed on her Grade 7 salary of 137,040/=, with costs and interest from the date of judgment. The heads claiming damages for demotion, garnished salary and general damages were not addressed in the final orders.

p. 4

Legal principles established

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  • A probationary period may not exceed six months, extendable by a further six months only with the employee's agreement; after the maximum 12 months the employee cannot be deemed to be on probation.
  • An employee who is no longer on probation cannot be terminated without the due process under Section 41 of the Employment Act, including an opportunity to be heard and make representations.
  • Termination is unfair where the employer fails to prove a valid and fair reason and that fair procedure was followed, under Section 45 of the Employment Act.

Court orders

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  1. 1.Payment of 1 month's salary in lieu of notice = Kshs 137,040
  2. 2.Payment of 6 months' salary as compensation for unlawful termination = 6 x 137,040 = Kshs 822,240 (total award Kshs 959,280)
  3. 3.Respondent to pay costs of the suit plus interest at Court rates with effect from the date of the judgment

Authorities

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Legislation

  • Employment Act 2007Section 41
  • Employment Act 2007Section 42
  • Employment Act 2007Section 43
  • Employment Act 2007Section 44
  • Employment Act 2007Section 45
  • Employment Act 2007Section 49

Cases cited (3)

  • Hesbon Ngaruiya Waiga -v- Equatorial Commercial Bank Limited
    [2013] eKLR
  • Mwendwa Maluli vs The Kenya Power and Lighting Company Limited
    [2014] eKLR
  • Victor Owuor Okeyo Vs African Banking Corporation Limited
    Nairobi Cause No. 1552 of 2011 eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction over a claim of unfair downgrade and unfair termination of employment (Employment Act 2007)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Elizabeth Mwikali Mwendwa v Kenya Investment Authority [2018] KEELRC 216 (KLR)", Case Analysis (2018). Cause No. 1659 of 2011 (Memorandum of Claim dated 15/09/2011). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/216/eng@2018-12-20

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