Archybald Munialo Munialo v Metal Crowns Limited [2018] KEELRC 690 (KLR)
The bottom line
#Kenya's Employment Court confirmed that even a justified dismissal is unlawful if the employee is never given a chance to be heard before termination.
What this practically means
#Executive summary
#Key legal issues
#Procedural and substantive fairness of the dismissal
The dismissal was unlawful because the Respondent did not accord the Claimant the safeguards under Section 41 of the Employment Act, though the dismissal was for good cause
The court found the Respondent failed to subject the Claimant to internal disciplinary process or give him an opportunity to defend himself against allegations of requisitioning excess parts. This brought the dismissal within the substantive and procedural fairness test. However, the Claimant was paid all terminal dues and save for the Section 41 failure, was dismissed for good cause, limiting compensation.
Effect of the discharge certificate
The discharge certificate was not executed by the Claimant and could not discharge the Respondent
The material parts of the discharge certificate purported to confirm receipt of terminal dues of Kshs. 163,957/- and waiver of further claims. However, the certificate was not signed by the Claimant; it was only signed by a witness. Its probative value was therefore doubtful, proving only an effort to tie the Claimant down to a discharge that was never executed.
Remedies for unlawful dismissal
Compensation was pegged at 3 months' salary under Section 49 of the Employment Act, subject to statutory deduction
Having found the dismissal unlawful only for want of procedural safeguards, and that terminal dues were paid and there was good cause, the court exercised discretion under Section 49 to award 3 months' salary as compensation, less statutory deductions, rather than the 12 months' salary sought.
Legal principles established
#- An employer must accord an employee the safeguards under Section 41 of the Employment Act before dismissal, failing which the dismissal is unlawful even where there is good cause
- A discharge certificate not signed by the employee has doubtful probative value and cannot bind him
Court orders
#- 1.Judgment entered for the Claimant against the Respondent for compensation pegged at 3 months' salary for the unlawful dismissal
- 2.3 months compensation of Kshs. 201,900/-, subject to statutory deduction as per Section 49 of the Employment Act
- 3.Each party to bear their own costs of the suit
- Jurisdiction invoked
- Original jurisdiction of the Employment and Labour Relations Court over a wrongful dismissal claim under the Employment Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Archybald Munialo Munialo v Metal Crowns Limited [2018] KEELRC 690 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/690/eng@2018-10-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.