Danson Mbubi Mutabi v Konza Ranching & Farming Co-operative Society Limited [2018] KEELRC 273 (KLR)
The bottom line
#Kenya's Employment Court awarded a dismissed farm manager Kshs 2.3 million, ruling his employer's failure to give him a hearing made his dismissal unfair.
What this practically means
#Executive summary
#Key legal issues
#Whether the 1975 minutes constituted a valid contract of employment
The court found that the minutes of 25/01/1975 (Minute 3/75) formed the contract of employment between the parties, rejecting the Respondent's objection that minutes could not amount to a written contract, especially as the Respondent failed to prove its own version of the contract.
The Respondent contended the minutes were not authentic and relied on Miguna Miguna v Attorney General for the proposition that only a written contract is enforceable. The court noted the Respondent acknowledged the Claimant was its employee and was dismissed for misconduct, yet failed to prove any written contract of its own. The minutes setting out terms of employment therefore stood as the contract.
Whether the termination was fair
The termination was unfair because the Claimant was not given any disciplinary hearing and was condemned unheard.
The court found no indication of any disciplinary hearing leading to the dismissal. Although the Respondent alleged gross misconduct, negligence and public interest grounds, and claimed the Claimant was expelled at the AGM in 2002, the Claimant testified he was never given a hearing. The court applied the natural justice principle that a man should not be condemned unheard and found the termination unfair.
What remedies flowed from the unfair termination
The Claimant was awarded 3 months' salary in lieu of notice and severance pay calculated at 2 months' salary for each year worked over 24 years, per the terms in Minute 3/75.
The court anchored remedies on the employment terms in Minute 3/75, which provided for notice and retirement benefits equivalent to two months' salary for every year worked. It awarded notice pay of Kshs. 129,210 and severance of Kshs. 2,067,360, totaling Kshs. 2,325,780, plus costs and interest, while declining to grant the other heads claimed.
Legal principles established
#- The rules of natural justice require that a person not be condemned unheard; termination without a hearing is unfair.
Court orders
#- 1.Award of 3 months' salary in lieu of notice of Kshs. 129,210/= to the Claimant
- 2.Award of severance pay for 24 years served calculated at 2 months' salary for each year worked, being Kshs. 2,067,360/= to the Claimant
- 3.Total award of Kshs. 2,325,780/= against the Respondent
- 4.The Respondent to pay costs of the suit plus interest at court rates with effect from the date of filing suit
- Jurisdiction invoked
- Jurisdiction of the Employment and Labour Relations Court under the Constitution (matter transferred by consent to the employment court upon its creation); disputed by the Claimant in respect of the counterclaim
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Danson Mbubi Mutabi v Konza Ranching & Farming Co-operative Society Limited [2018] KEELRC 273 (KLR)", Case Analysis (2018). Cause No. 1660 of 2017 (Formerly Machakos HCCC No. 33 of 2000). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/273/eng@2018-12-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.