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ELRCAllowedNot stated in the excerpt· [2018] KEELRC 566 (KLR)

Moffat Mwanzi v Mudher Engineering Works Limited [2018] KEELRC 566 (KLR)

Employment and Labour Relations Court
23 November 2018
922 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 awarded a welder over Kshs.516,000 after his employer fired him without notice, a hearing, or proof of a valid reason.

What this practically means

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Executive summary

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The claimant, employed as a welder by the respondent since January 1995, claimed that his employment was verbally terminated without notice, a hearing or justifiable cause. He had earlier received notice of termination on grounds of hard economic times, ending 05.04.2011, which was withdrawn by letter dated 08.04.2011. On 14.05.2011 he was arrested at work on allegations of theft and pressed to resign without final dues. The respondent relied on a hand-written statement dated 16.05.2011 purportedly discharging it from liability, and on warning letters alleging drunkenness. The claimant denied writing or signing the statement, stating his highest education was class 2 and he could not write in any language. The respondent's witness testified he did not know why the claimant was dismissed, had never seen him writing, and otherwise considered him a good worker. The court found the claimant was not accorded notice and a hearing as required by section 41 of the Employment Act, 2007; that on a balance of probability he never wrote or signed the discharge statement; and that the respondent failed to prove the reason for termination under sections 43 and 47(5). The termination was unfair in procedure and substance. The court awarded pay in lieu of notice of Kshs.20,947.00, 12 months' compensation of Kshs.251,364.00, and service pay of Kshs.223,434.66, totaling Kshs.516,692.66, with interest if unpaid by 31.12.2018, plus costs.

Key legal issues

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01

Procedural fairness in termination

Holding

Termination without notice and hearing was procedurally unfair.

Reasoning

The claimant was arrested at the workplace on allegations of theft and asked to resign without payment of final dues. No notice or hearing was accorded him prior to termination, contrary to section 41 of the Employment Act, 2007. The termination was therefore unfair in procedure.

p. 2
02

Validity of the alleged discharge statement

Holding

On a balance of probability the claimant never wrote or signed the alleged statement of 16.05.2011.

Reasoning

The claimant testified his highest education was class 2 and he could not write in any language. The respondent's witness confirmed he had never seen the claimant writing and did not know if he knew how to write. The court found on a balance of probability that the claimant did not author or sign the discharge statement.

p. 2
03

Burden of proving reason for termination

Holding

The respondent failed to prove the reason for termination; the termination was substantively unfair.

Reasoning

Under sections 43 and 47(5) of the Employment Act, 2007 the employer bears the burden of proving the reason for termination. The respondent's witness did not know why the claimant was dismissed and confirmed his performance was not bad. The alleged theft and drunkenness were not proved, so the termination was unfair in substance as well.

p. 2
04

Remedies for unfair termination

Holding

Claimant awarded notice pay, 12 months' compensation and service pay.

Reasoning

Notice pay of Kshs.20,947.00 was awarded under section 35; 12 months' compensation of Kshs.251,364.00 under section 49(1)(c), considering 17 years of service, the desire to remain in employment, non-contribution to the predicament, the employer's condonation of drunkenness, and the aggravating feigned redundancy and arrest. Service pay of Kshs.223,434.66 was awarded under section 35 as there was no evidence of alternative pension arrangements or NSSF membership.

p. 2

Legal principles established

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  • An employer must accord an employee notice and a hearing before termination as envisaged in section 41 of the Employment Act, 2007.
  • The burden of proving the reason for termination rests on the employer under sections 43 and 47(5) of the Employment Act, 2007.

Court orders

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  1. 1.Payment of Kshs.516,692.66 by 31.12.2018 failing interest at Court rates from the date of judgment till full payment
  2. 2.The respondent to pay the claimant's costs of the suit

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 47(5)
  • Employment Act, 2007section 35
  • Employment Act, 2007section 49(1)(c)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over claims under the Employment Act, 2007 (sections 35, 41, 43, 47(5), 49(1)(c))

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, "Moffat Mwanzi v Mudher Engineering Works Limited [2018] KEELRC 566 (KLR)", Case Analysis (2018). Not stated in the excerpt. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/566/eng@2018-11-23

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