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ELRCPartially AllowedCause No. 1596 of 2014· [2018] KEELRC 332 (KLR)

Gerald Kaai Mureithi v Sunripe (1976) Limited [2018] KEELRC 332 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
3 December 2018
1,936 words in judgment
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The bottom line

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A Kenyan court ruled that firing a sick or injured worker without a hearing or medical examination is unfair, awarding the employee a year's salary in compensation.

What this practically means

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Executive summary

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The claimant, employed by the respondent as an Assistant Welder from 2003 and confirmed in 2005 at a monthly salary of Kshs.12,000.00, was involved in a road traffic accident on 9th August 2013. After hospitalisation he reported to work on 9th December 2013 and applied for annual leave. He was instead placed on unpaid leave by letter dated 24th December 2013 and asked to avail a medical report. He presented a report from P.C.E.A Kikuyu Hospital on 15th January 2014, but on 28th January 2014 was issued a termination letter dated 10th January 2014 - before the medical report was tendered. The respondent maintained that the claimant was unfit to resume duty and that his terminal dues of Kshs.44,145.20 were offset against a Kshs.185,714.00 loan owed to Sunripe Sacco, which the claimant denied. The court framed four issues: lawfulness of the termination, lawfulness of the loan deduction, entitlement to relief, and costs. Relying on authorities cited by the claimant on termination on medical grounds and reasonable accommodation of ill or injured employees, the court found the respondent terminated the claimant without a hearing or medical examination and without due process, rendering the termination unfair and unlawful. It further held the loan offset unlawful for want of proof. The court awarded one month's salary in lieu of notice (Kshs.12,000.00) and 12 months' compensation (Kshs.144,000.00), totalling Kshs.156,000.00, with costs to the respondent.

Key legal issues

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01

Whether the termination was wrongful, unfair and unlawful

Holding

The termination was unfair and unlawful; the employer failed to follow due process for termination on medical grounds, including a hearing and medical examination.

Reasoning

The claimant was terminated on account of ill health following a road traffic accident. The court adopted the reasonable accommodation principle and the medical grounds procedure: the employer was obliged to support the employee's recovery, subject him to a specific medical examination and give notice of termination. The respondent did none of these - no hearing, no medical examination to determine capacity - and the termination letter was dated before the medical report was presented.

p. 3
02

Whether the deduction of the alleged Sacco loan from terminal benefits was lawful

Holding

The offset was unlawful; the loan and the authority to offset were not proved.

Reasoning

The claimant denied owing anything to Sunripe Sacco, a separate entity from the respondent. The respondent produced no evidence of the loan or of its authority to deduct it from terminal dues. The loan remained a mere allegation and the court held the burden lay on the respondent to prove both the debt and the authority to offset.

p. 3
03

Entitlement to relief

Holding

The claimant was entitled to relief having succeeded on unlawful termination.

Reasoning

Having won on the unlawful termination claim, the claimant was granted one month's salary in lieu of notice and the maximum 12 months' compensation for unfair termination.

p. 3

Legal principles established

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  • Where an employee is injured or taken ill during employment, the employer must reasonably accommodate the employee, going beyond grant of sick leave, including modification of duties, hours, workplace or reassignment.
  • Termination on medical grounds requires a specific medical examination and notice of impending termination; failure to follow the procedure amounts to unfair termination.
  • A party alleging a debt (the sacco loan offset) bears the burden of proving it; an unproven offset of terminal dues is unlawful.

Court orders

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  1. 1.One (1) month's salary in lieu of notice of Kshs.12,000.00
  2. 2.12 months' compensation for unlawful termination of employment of Kshs.144,000.00 (Kshs.12,000.00 x 12)
  3. 3.Total award of Kshs.156,000.00
  4. 4.The costs of the claim to be borne by the respondent

Authorities

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Legislation

  • Employment Act

Cases cited (2)

  • Kennedy Nyaguncha Omanga vs Bob Morgan Services Limited
    Industrial Court Cause No. 1983 of 2011
  • Kenya Plantation and Agricultural Workers Union v Rea Vipingo Plantations Limited & another
    [2015] eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court of Kenya (employment dispute 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, "Gerald Kaai Mureithi v Sunripe (1976) Limited [2018] KEELRC 332 (KLR)", Case Analysis (2018). Cause No. 1596 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/332/eng@2018-12-03

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