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Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in judgment· [2018] KEELRC 1342 (KLR)

Jamleck Kariuki Kibugi v DHL Exel Supply Chain (K) Limited [2018] KEELRC 1342 (KLR)

Employment and Labour Relations Court
31 July 2018
1,062 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An employer who cannot prove the real reason for firing you must pay compensation, even if you once signed an admission of fault.

What this practically means

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Executive summary

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The claimant, employed by the respondent in 2012 as a Truck Driver earning Kshs.24,200 monthly under one-year contracts, sought Kshs.169,400 being one month's salary in lieu of notice plus twelve months' compensation for unfair termination following his dismissal on 15.11.2013. He testified that on 9.11.2013 he was assigned a defective truck without a turn boy; the truck rolled due to a defective handbrake, destroyed crates and injured him. He alleged the Security Officer, Mr. Ole Sayaya, coerced him into recording a statement admitting negligence to protect the respondent's transport contract with Kenya Breweries Limited. The respondent called no witnesses and denied liability, asserting the termination was substantively and procedurally fair. The court framed two issues: whether the dismissal was unfair and whether the reliefs were due. Applying sections 43 and 45(2) of the Employment Act, the court held the employer bore the burden of proving the reason for termination and, having called no evidence to rebut the claim of a forced confession, failed to discharge it; the dismissal was therefore unfair. However, the claimant's signed admission in response to the show cause letter obviated the need for an oral hearing under section 41. Compensation was limited to two months because the fixed-term contract had only two months unexpired. Judgment was entered for the claimant for Kshs.72,600 plus costs and interest at court rate, subject to statutory deductions, together with a certificate of service under section 51.

Key legal issues

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01

Whether the dismissal was unfair

Holding

The dismissal was unfair because the respondent failed to prove the reason for termination; the unchallenged evidence was that the confession of negligence was forced by the Security Officer.

Reasoning

Section 45(2) requires the employer to prove both valid and fair reason and fair procedure. Under section 43 the burden of proving the reason lies on the employer. The claimant retracted his confession, blaming the Security Officer, who gave no evidence to rebut. The respondent called no witnesses and did not discharge the burden, rendering the dismissal unfair and unjustified.

p. 2
02

Whether procedure under section 41 was followed

Holding

A signed written admission in response to a show cause letter obviated the need for an oral hearing.

Reasoning

The claimant signed a response to the show cause letter admitting negligence. The court held that in such circumstances an oral hearing in the presence of a fellow employee or union representative was unnecessary. However, this did not cure the respondent's failure to prove the reason for dismissal.

p. 2
03

What remedies flow from the unfair dismissal

Holding

One month's salary in lieu of notice plus two months' compensation, reflecting the unexpired term of the fixed contract, plus certificate of service.

Reasoning

Having found the dismissal unfair, the court awarded notice pay of Kshs.24,200 and compensation of two months' salary (Kshs.48,400), limited because the contract had only two months to run. Certificate of service was awarded as a statutory right under section 51 of the Employment Act.

p. 2

Legal principles established

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  • Under section 43 of the Employment Act the employer bears the burden of proving the reason for termination, and in default the termination is unfair under section 45.
  • Where an employee admits the misconduct in a signed response to a show cause letter, no further oral hearing under section 41 is required.
  • Compensation for unfair termination of a fixed term contract is limited to the unexpired period of the contract.

Court orders

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  1. 1.Judgment entered for the claimant in the sum of Kshs.72,600
  2. 2.Costs of the suit to the claimant
  3. 3.Interest at court rate from the date of judgment
  4. 4.Award to be paid less statutory deductions
  5. 5.Certificate of service to be issued to the claimant

Authorities

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Legislation

  • Employment Actsection 45(2)
  • Employment Actsection 43
  • Employment Actsection 41
  • Employment Actsection 51
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (s.45, 43, 41 and 51 referred to)

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, "Jamleck Kariuki Kibugi v DHL Exel Supply Chain (K) Limited [2018] KEELRC 1342 (KLR)", Case Analysis (2018). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1342/eng@2018-07-31

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