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ELRCPartially AllowedCause No. 1964 of 2012· [2018] KEELRC 1068 (KLR)

Joseph Mutuku Musee v Kenya Vehicle Manufactures [2018] KEELRC 1068 (KLR)

Employment and Labour Relations Court
25 September 2018
2,596 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 ruled that an employee claiming he was dismissed wins when the employer cannot prove he absconded, awarding him over Kshs. 417,000.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Sales and Marketing Executive by letter dated 22 July 2010, sued for damages for unfair and wrongful termination, unpaid terminal benefits, commissions and other benefits. He claimed he was orally summarily dismissed on 2 March 2012 after reporting frustrations over commissions and allowances, while the Respondent contended he absconded duty and that it only issued a cautionary letter. The Respondent neither filed submissions nor attended court. The court framed four issues: dismissal versus abscondment, validity of reasons, due process, and remedies. It found the cautionary letter dated 2.3.2012 was received on 5/4/2012, after the alleged dismissal, making it an afterthought; the respondent never issued a dismissal letter for abscondment and never pursued the claimant despite having his contacts. It therefore found verbal dismissal the most probable position. Under Sections 43 and 41 of the Employment Act, no valid reasons were given and no due process was followed, so the dismissal was unfair and unjustified. On remedies, the court awarded one month's salary in lieu of notice (Kshs. 40,000), 40 days' prorated leave (Kshs. 57,333), pension dues, and eight months' salary as compensation (Kshs. 320,000), totalling Kshs. 417,333 plus costs and interest. It declined March salary, the unproved mileage claim of Kshs. 1,360,835, the fuel claim, and unquantified parking, airtime and entertainment claims. Determination of commission payable and the respondent's counterclaim was reserved pending resubmission of proper figures based on profits rather than total invoices.

Key legal issues

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01

Whether the Claimant was dismissed or absconded duty

Holding

The Claimant was verbally dismissed on 2/3/2012

Reasoning

The letter dated 2.3.2012 was a cautionary letter received by the Claimant on 5/4/2012, after the alleged termination, and was an afterthought. The respondent never issued a dismissal letter for abscondment and never sought out the claimant despite having his contacts. Abscondment was only raised upon receipt of the demand notice. The court therefore found verbal dismissal the most probable position.

p. 2
02

Whether there were valid reasons and due process for the dismissal

Holding

There were no valid reasons and due process was not followed; dismissal was unfair

Reasoning

Under Sections 43 and 41 of the Employment Act, the employer must prove valid reasons and follow fair procedure. The respondent never issued any dismissal letter stating reasons, and the claimant was never given an opportunity to explain himself before summary dismissal. The court concluded the dismissal was unfair and unjustified.

p. 3
03

Commission claim

Holding

Reserved pending resubmission of proper figures based on profits

Reasoning

Commission was payable at 15% on profit realized on sales, but the claimant calculated commission on total invoices. The court declined to speculate on profits and reserved the determination until parties resubmit proper accounts on the item, including vis-à-vis the counterclaim.

p. 3

Legal principles established

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  • Where an employer alleges abscondment but never issues a dismissal letter and does not follow up the absconding employee, the probable position is that the employee was verbally dismissed
  • An employee is entitled to be informed of the reasons for dismissal; failure to serve such reasons breaches Section 43 of the Employment Act
  • Termination without adherence to the procedure in Section 41 of the Employment Act is unfair and unjustified

Court orders

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  1. 1.1 month salary in lieu of notice = Kshs. 40,000/=; 40 days leave payable = Kshs. 57,333/=; pension dues released to the Claimant; 8 months' salary for unlawful termination = Kshs. 320,000/=; total Kshs. 417,333/= plus costs and interest
  2. 2.Determination on commission payable vis-à-vis the counterclaim reserved to a later stage pending resubmission of proper figures

Authorities

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Legislation

  • Employment ActSection 51
  • Employment ActSection 41
  • Employment ActSection 45(2)(c), 45(5)(a)-(e)
  • Employment ActSection 43

Cases cited (1)

  • Mr. Muthoka Kimotho Vs KCB bank Limited
Jurisdiction invoked
Employment and labour relations dispute under the Employment Act, Article 162(2) jurisdiction of the Employment and Labour Relations Court

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, "Joseph Mutuku Musee v Kenya Vehicle Manufactures [2018] KEELRC 1068 (KLR)", Case Analysis (2018). Cause No. 1964 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1068/eng@2018-09-25

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