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ELRCPartially AllowedCause No 670A of 2014· [2018] KEELRC 758 (KLR)

Anne Nduku Ngila v HWAOCK IM & another [2018] KEELRC 758 (KLR)

Employment and Labour Relations Court
2 November 2018
1,226 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan school unfairly sacked a teacher without a proper hearing and must pay over Kshs. 424,000, showing employers must follow fair procedure before firing.

What this practically means

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Executive summary

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The claimant, a teacher employed by the respondents from January 2006 until termination on 18.12.2013, sued for salary arrears, notice pay, pension contributions, leave pay, severance pay and compensatory damages for unfair termination. By consent, the case was determined on pleadings, documents and final submissions. The respondents' advocates sent an unsigned show-cause letter alleging that school materials were found in the claimant's cupboard and residence; her advocates demanded a signed letter, and instead of providing one the respondent terminated her for failure to reply, retroactively effective 07.02.2013. The Court found the termination unfair both in procedure and substance: the employer failed to accord the claimant a hearing under section 41 of the Employment Act, 2007; the reason for termination was not valid under section 43 because she had demanded a signed letter rather than refused to reply; and, no witness being called, the respondent failed to discharge the burden under section 47(5). Considering her 7 years of service and the retroactive effective date as an aggravating factor, the Court awarded maximum compensation of 12 months' net salary (Kshs.339,948.00) under section 49 and the agreed 3 months' salary in lieu of notice (Kshs.84,987.00), totalling Kshs.424,935.00. Salary arrears, pension contributions, leave pay and severance pay were disallowed as not earned or inapplicable, severance requiring redundancy under section 40. Judgment was entered for the claimant with interest and costs.

Key legal issues

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01

Whether the termination of the claimant's employment was unfair

Holding

The termination was unfair both in procedure and substance

Reasoning

The show-cause letter was unsigned and the claimant's advocates asked for a signed copy; instead of providing it the respondent terminated her for failure to reply. The reason for termination was therefore not valid under section 43. The respondent called no witness and failed to establish that the reason was valid, genuine or justifiable under sections 43 and 47(5). Long service of 7 years and the retroactive effective date of termination were aggravating factors.

p. 2
02

What remedies flow from the unfair termination

Holding

Maximum compensation of 12 months' net salary under section 49, plus 3 months' salary in lieu of notice; other heads disallowed

Reasoning

Balancing justice, the Court awarded maximum compensation of 12 months' net pay (Kshs.339,948.00), treating the retroactive effective date as aggravating. Salary arrears, pension contribution and leave failed as not earned, the compensation covering the suspension period; notice pay was agreed in the termination letter; severance pay failed as there was no redundancy under section 40.

p. 2

Legal principles established

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  • An employer must accord an employee a hearing before termination as required by section 41 of the Employment Act, and failure to respond to an unsigned show-cause letter after demanding a signed one cannot justify termination
  • The employer bears the burden of establishing that the reason for termination was valid and justifiable under sections 43 and 47(5) of the Employment Act

Court orders

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  1. 1.Payment of the sum of Kshs. 424,935.00 by 31.12.2018 failing interest to be payable thereon at Court rates from the date of this 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 49
  • Employment Act, 2007section 28
  • Employment Act, 2007section 40
Jurisdiction invoked
Employment Act, 2007 (sections 28, 40, 41, 43, 47(5), 49) - first-instance employment claim

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, "Anne Nduku Ngila v HWAOCK IM & another [2018] KEELRC 758 (KLR)", Case Analysis (2018). Cause No 670A of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/758/eng@2018-11-02

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