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ELRCPartially AllowedCause No. 188 of 2015· [2018] KEELRC 1237 (KLR)

Joash Ngaira Mundia v Uweza Foundation & 2 others [2018] KEELRC 1237 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
9 July 2018
922 words in judgment
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The bottom line

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A Kenyan court ruled a foundation unfairly fired its employee because it skipped the required warnings and disciplinary hearing, awarding him Kshs. 145,000.

What this practically means

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Executive summary

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The Claimant, employed by Uweza Foundation as a Football Coach and Coordinator on yearly renewable contracts over five years at a basic salary of Kshs. 14,500, was terminated by letter dated 30 January 2015 on grounds of refusal to cooperate and communicate with his supervisor, cited as insubordination under the Human Resource Policy. He sued for unfair and unlawful termination, seeking 12 months' salary as compensation, service gratuity, exemplary and aggravated damages, and a certificate of service. The Respondents denied the claim, asserting misconduct in November 2014 followed by a warning and suspension, and renewed refusal to cooperate in January 2015; they also objected to the Managing Director and County Director being sued personally. In evidence, the Respondent's witness admitted there was no disciplinary hearing before termination and that the termination letter lacked particulars of the alleged non-cooperation. The Court found the Claimant was terminated without the two warning letters required by his contract's termination clause and without fair procedure as envisaged under Section 45(2) of the Employment Act 2007, concluding the termination was unfair and unjustified. The Court awarded one month's salary in lieu of notice, six months' salary for the remainder of the contract period, three months' salary as damages for unfair termination, totalling Kshs. 145,000, ordered issuance of a certificate of service, and awarded costs plus interest at court rates from the date of judgment. The claims for 12 months' compensation, gratuity and exemplary damages were not granted.

Key legal issues

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01

Validity of the reason and fairness of procedure for termination

Holding

The termination was unfair and unjustified as the Respondent failed to prove a valid reason and did not follow fair procedure

Reasoning

Section 45(2) of the Employment Act 2007 places the burden on the employer to prove a valid reason, a fair reason related to conduct, capacity or compatibility, or operational requirements, and fair procedure. The Respondent admitted there was no disciplinary hearing, the termination letter lacked particulars of the alleged non-cooperation, and the contractual requirement of two consecutive warning letters was not met.

p. 2

Legal principles established

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  • A termination of employment is unfair where the employer fails to prove a valid reason, a fair reason and fair procedure
  • An employer must follow its contractual disciplinary procedure, including prior warnings, before terminating for misconduct

Court orders

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  1. 1.Payment of 1 month salary in lieu of notice (Kshs. 14,500/=)
  2. 2.Payment of 6 months salary for the remainder of the contract period (Kshs. 87,000/=)
  3. 3.Payment of 3 months salary as damages for unfair termination (Kshs. 43,500/=)
  4. 4.Issuance of a Certificate of Service to the Claimant
  5. 5.Respondent to pay costs of the suit plus interest at court rates from the date of judgment

Authorities

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Legislation

  • Employment Act 2007Section 45(2)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (unfair termination 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, "Joash Ngaira Mundia v Uweza Foundation & 2 others [2018] KEELRC 1237 (KLR)", Case Analysis (2018). Cause No. 188 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1237/eng@2018-07-09

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