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ELRCPartially AllowedCause No 1383 of 2012· [2018] KEELRC 1279 (KLR)

Kenya Shoe And Leather Workers Union v H. R. Strategic Partners Limited [2018] KEELRC 1279 (KLR)

Employment and Labour Relations Court
10 August 2018
1,525 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 a machine operator's firing was unfair because his employer gave no hearing, no reasons, and no dismissal letter.

What this practically means

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Executive summary

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The claimant union sued on behalf of a grievant employed as a Machine Operator from 7th September 2009 until his employment was terminated on 31st October 2011, earning Kshs.8,710 per month inclusive of house allowance. The claimant alleged the grievant was condemned unheard, without a show cause letter or disciplinary process, and without reasons, contrary to Sections 43(1) and 45(2)(a) of the Employment Act, and sought reinstatement or, in the alternative, notice pay, leave, severance pay, twelve months' compensation and a certificate of service. The respondent defended the termination as lawful gross misconduct after verbal and written warnings, asserting the grievant was a temporary employee who absconded duty and was fully paid. The court framed two issues: whether the termination was lawful and whether the grievant was entitled to the prayers sought. On the evidence, the respondent admitted it never issued a show cause letter, never informed the grievant of the termination, and produced no documents proving payment of terminal dues or grant of leave. Relying on Linus Barasa Odhiambo v Wells Fargo Limited, the court held the termination was unfair both substantively and procedurally under Section 45(2), and that summary dismissal could not stand absent a letter of summary dismissal. Reinstatement was not granted given the time lapsed. The court awarded notice pay of Kshs.8,710, service pay of Kshs.8,710 (the respondent having admitted no NSSF contributions), annual leave of Kshs.17,001.25 for 50.75 days, and three months' salary compensation of Kshs.26,130, totalling Kshs.60,551.25, plus a certificate of service, costs of Kshs.30,000 all inclusive to the claimant, and interest at court rates from judgment to payment in full.

Key legal issues

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01

Procedural fairness of the termination

Holding

The termination was procedurally unfair because the grievant was neither given a hearing nor issued with reasons for termination

Reasoning

The respondent admitted it did not issue a show cause letter, did not call the grievant to inform him of the termination, and reported nothing to the Labour Officer. There was also no letter of summary dismissal to support the Section 44(3) defence. Compliance with Sections 41, 43 and 45 of the Employment Act was therefore absent, rendering the dismissal unfair.

p. 3
02

Substantive fairness of the termination

Holding

The termination was substantively unfair as no valid reasons for it were proved

Reasoning

The respondent alleged gross misconduct based on absconding duty, changing shifts without authority and prior warnings, but no letter assigning reasons was ever issued to the grievant and the allegation that he failed to report from 22nd November 2010 was not communicated to him. The court found the termination failed the substantive test under Section 45(2).

p. 3
03

Entitlement to terminal dues

Holding

The grievant was entitled to notice pay, service pay and accrued annual leave

Reasoning

The employer admitted it did not remit NSSF contributions, justifying service pay at 15 days per year for the two years worked. The employer failed to prove the grievant took leave, so leave for the full 29 months of service was computed at 50.75 days. One month's notice pay was awarded on the basis of the monthly salary of Kshs.8,710.

p. 3
04

Quantum of compensation under Section 49

Holding

Compensation of three months' salary was appropriate in the circumstances

Reasoning

In exercising discretion the court considered the circumstances under which the grievant was terminated, his length of service of about two years, and all other relevant factors, awarding Kshs.26,130 instead of the twelve months' salary sought by the claimant.

p. 3

Legal principles established

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  • Termination of employment without a hearing and without a letter assigning reasons is unfair both substantively and procedurally under Section 45(2) of the Employment Act
  • Summary dismissal cannot be proved in the absence of a letter of summary dismissal issued to the employee
  • An employer who has not enrolled employees with NSSF is liable to pay service pay on termination

Court orders

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  1. 1.Declaration that the termination of the grievant's employment was unfair
  2. 2.Award of notice pay of Kshs.8,710.00
  3. 3.Award of service pay of Kshs.8,710.00
  4. 4.Award of annual leave of Kshs.17,001.25
  5. 5.Award of compensation of Kshs.26,130.00 (total Kshs.60,551.25)
  6. 6.Issuance of a certificate of service
  7. 7.Costs in the sum of Kshs.30,000 all inclusive to the claimant
  8. 8.Interest at court rates from date of judgment to date of payment in full

Authorities

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Legislation

  • Employment ActSection 34(1)
  • Employment ActSection 41
  • Employment ActSection 43(1) and Section 43
  • Employment ActSection 44(3)
  • Employment ActSection 45(2)(a) and Section 45(2)

Cases cited (1)

  • LINUS BARASA ODHIAMBO -V- WELLS FARGO LIMITED
    [2012] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act (Sections 34, 41, 43, 44(3), 45(2)) as invoked by the parties; no constitutional provision stated

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, "Kenya Shoe And Leather Workers Union v H. R. Strategic Partners Limited [2018] KEELRC 1279 (KLR)", Case Analysis (2018). Cause No 1383 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1279/eng@2018-08-10

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