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ELRCPartially AllowedNot stated in the judgment· [2018] KEELRC 548 (KLR)

Silah Kiprop Koech v Advanced Innovations Limited [2018] KEELRC 548 (KLR)

Employment and Labour Relations Court
23 November 2018
784 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled a dismissal unfair because the employer gave no written notice, no hearing, and never showed up to prove its reasons.

What this practically means

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Executive summary

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The Claimant, Silah Kiprop Koech, was employed by Advanced Innovations Ltd as a Technician on 23 February 2011 and confirmed by letter dated 13 July 2011. On 22 July 2013 he was questioned over the alleged tampering with a slot machine, gave verbal explanations, and was suspended pending investigations. On 5 August 2013 he collected a letter of summary dismissal. He sued alleging unfair termination of employment and breach of contract. At the hearing on 1 November 2018 the Respondent and its advocate were absent despite service of a hearing notice on Alphonce Mutinda & Co. Advocates; the Court allowed the hearing to proceed ex parte on the Claimant's sworn testimony and exhibits. The Court held that under section 35 of the Employment Act, 2007 the Respondent should have issued a written notice of termination and, under section 41, afforded the Claimant a hearing. With no evidence of compliance with sections 35 and 41, the Claimant met the threshold under section 47(5), and the summary dismissal was procedurally unfair. The Respondent also failed to discharge the employer's burden under sections 43, 45 and 47(5), so there was no substantive fairness. The Court awarded compensation equivalent to 2 months' gross wages (Kshs 55,030/-) based on 2 years of service, and 1 month's pay in lieu of notice (Kshs 26,080/-) under section 35(1)(c), totalling Kshs 81,110/-. Claims for 7 days' wages were not proved; the August 2013 wages claim failed as the pay slip showed payment; and the gratuity claim failed because the contract made no provision for gratuity and the Claimant contributed to the NSSF, disqualifying service pay under section 35(5). The Claimant was awarded costs. Judgment delivered in Nairobi on 23 November 2018 by Radido Stephen, Judge.

Key legal issues

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01

Procedural fairness of the summary dismissal

Holding

The dismissal was procedurally unfair as no written termination notice was issued and the Claimant was not afforded a hearing

Reasoning

Section 35 of the Employment Act required the Respondent to issue a written notice of termination, and section 41 contemplated a hearing before dismissal. The Claimant testified he was only asked for verbal explanations over the slot machine tampering allegation, was suspended and later handed a dismissal letter without notice or an opportunity to make representations. The Respondent did not appear at the hearing to controvert this testimony or lead evidence of compliance. Absent evidence of compliance with sections 35 and 41, the Claimant discharged the threshold under section 47(5).

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02

Substantive fairness of the summary dismissal

Holding

The Court concluded there was no substantive fairness in the dismissal because the employer failed to discharge the statutory burden

Reasoning

Sections 43, 45 and 47(5) of the Employment Act impose on the employer the burden of proving the reasons for termination and that the reasons were fair and valid. The Respondent and its advocate were absent at the hearing despite service of a hearing notice, and therefore led no evidence to justify the dismissal on the alleged tampering with a slot machine. With no evidence from the employer, the Court concluded there was no substantive fairness in the dismissal of the Claimant.

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03

Remedies for unfair termination

Holding

The Claimant was awarded the equivalent of 2 months gross wages as compensation and 1 month pay in lieu of notice

Reasoning

For the unfair termination, the Court exercised discretion to award compensation equivalent to 2 months gross wages based on the 2 years of service, plus 1 month pay in lieu of notice under section 35(1)(c) of the Employment Act. Gross salary for July 2013 was Kshs 27,515/- while basic was Kshs 26,080/-. The compensation was computed at Kshs 55,030/- and pay in lieu of notice at Kshs 26,080/-, totaling Kshs 81,110/-.

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04

Claims for earned wages, wages up to 5 August 2013 and gratuity

Holding

The claim for 7 days' wages was not proved; the claim for August wages failed as he was paid; the gratuity claim failed as there was no contractual entitlement and he was an NSSF contributor

Reasoning

The Claimant sought Kshs 7,733/- for 7 days worked without disclosing the month and year, and the head was not proved. His pay slip for August 2013 showed he was paid and signed in acknowledgment, so nothing turned on the claim for wages up to 5 August 2013. The employment letter did not provide for gratuity, and section 35(5) service pay was unavailable since his pay slips showed contributions to the National Social Security Fund.

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Legal principles established

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  • An employer must issue a written notice of termination under section 35 and afford the employee a hearing under section 41 of the Employment Act; without evidence of compliance with sections 35 and 41, an employee who establishes his case under section 47(5) succeeds on procedural fairness.
  • Where an employer does not appear to discharge the burden imposed by sections 43, 45 and 47(5) of the Employment Act, the court may conclude there was no substantive fairness in the dismissal.

Court orders

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  1. 1.The Court found and held that the summary dismissal of the Claimant was unfair
  2. 2.Award of compensation equivalent to 2 months gross wages: Kshs 55,030/-
  3. 3.Award of pay in lieu of notice: Kshs 26,080/-
  4. 4.Total award of Kshs 81,110/- to the Claimant
  5. 5.Claimant to have costs of the suit

Authorities

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Legislation

  • Employment Act, 2007section 35
  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 35(5)
  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 45
  • Employment Act, 2007section 47(5)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over a claim of unfair termination of employment and breach of contract (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, "Silah Kiprop Koech v Advanced Innovations Limited [2018] KEELRC 548 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/548/eng@2018-11-23

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