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ELRCPartially AllowedCause 732 of 2014· [2018] KEELRC 1141 (KLR)

Justus Masinde Barasa v Metal Crowns Limited [2018] KEELRC 1141 (KLR)

Employment and Labour Relations Court of Kenya
21 September 2018
880 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 an employer's dismissal unfair because it skipped the disciplinary hearing and documentation the Employment Act requires, awarding ten months' salary.

What this practically means

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Executive summary

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The claimant, employed by the respondent as a printing supervisor from 13 September 2010 at a monthly salary that rose to Kshs 68,286/=, sued for compensation and terminal dues, alleging his services were terminated unlawfully and wrongfully because he frequently demanded parts of his annual leave. The respondent denied this, asserting the termination was lawful on grounds of poor performance and sleeping during working hours, supported by verbal and written warnings. The claimant denied receiving the suspension letter of 29 December 2011 and the show cause letter of 17 January 2012, and testified he was never subjected to a disciplinary hearing. The respondent's witness, Mr Stephen Mureithi Njeru, maintained the claimant had been warned and had responded unsatisfactorily to a show cause letter, though no such response was produced in evidence, and the acknowledgement portion of the suspension letter was unsigned. The court held that although the respondent may have had a valid and justifiable reason to terminate, the communication of the reasons and the handling of the separation did not comply with the Employment Act; the claimant was not confronted with the accusations or afforded a hearing. The termination was declared unfair. The court awarded ten months' salary as compensation (Kshs 682,860/=), in addition to terminal dues offered in the termination letter dated 4 February 2012 if not already paid, subject to statutory deductions, with interest at court rates from the date of judgment and costs of the suit to the claimant. The judgment was delivered at Nairobi on 21 September 2018 by Abuodha J. N.

Key legal issues

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01

Procedural fairness in termination of employment

Holding

The termination was procedurally unfair because the claimant was not called to a disciplinary hearing and was not confronted with the accusations against him.

Reasoning

The court found no evidence that the claimant was called for a disciplinary hearing before dismissal. The termination letter cited only unsatisfactory performance and did not list other accusations such as sleeping on the job, and there was no proof the claimant was confronted with them. Although the respondent's witness said the claimant responded to a show cause letter, no such response was produced in evidence. The warning letters' receipt by the claimant was also unproved, the suspension letter's acknowledgement portion being unsigned.

p. 1
02

Validity of the reason for termination

Holding

The respondent may have had a valid and justifiable reason for the termination, but that did not cure the procedural defects.

Reasoning

The court accepted that poor performance and sleeping during working hours could constitute valid grounds, as the claimant conceded his role as supervisor carried responsibility for diligence. However, the manner of communicating the reasons and handling the separation did not meet the Employment Act's requirements, so the termination was declared unfair on procedural grounds and compensation followed.

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Legal principles established

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  • Even where an employer has a valid reason for termination, failure to follow fair procedure under the Employment Act renders the termination unfair.

Court orders

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  1. 1.Declaration that the termination of the claimant's services was unfair
  2. 2.Award of ten months' salary as compensation for unfair termination, Kshs 682,860/=, in addition to terminal dues offered in the termination letter dated 4th February, 2012 if not already paid
  3. 3.Award subject to statutory deductions
  4. 4.Interest on the award at court rates from the date of judgment
  5. 5.Claimant to have costs of the suit

Authorities

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Legislation

  • Employment Actnot specified
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (employment dispute)

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, "Justus Masinde Barasa v Metal Crowns Limited [2018] KEELRC 1141 (KLR)", Case Analysis (2018). Cause 732 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1141/eng@2018-09-21

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