Maxwell Agutu Maigo v Kenya National Trading Corporation Limited [2018] KEELRC 1495 (KLR)
The bottom line
#A Kenyan court ordered Kenya National Trading Corporation to pay a dismissed manager KSh 3.14 million because it could not prove valid reasons for firing him.
What this practically means
#Executive summary
#Key legal issues
#Whether there were valid reasons to dismiss the Claimant
No valid reasons were established; the Respondent failed to discharge the burden of proving the grounds for dismissal.
The Respondent alleged irregular delegation of LPO signing, failure to act on an SMS alert from Bamburi, and outsourcing of transport. RW1 admitted the LPOs were not assigned to the Claimant and there was no evidence they were assigned to his department. The LPOs were signed by Philemon Mutai of the Supply Chain, not the Claimant's department, and the SMS was never proved. Under Sections 43(2), 44(6) and 47(5) of the Employment Act, the burden lay on the employer, which it failed to discharge.
Whether due process was followed
Yes - the Claimant was accorded due process under Section 41 of the Employment Act.
The Claimant was notified of the disciplinary hearing, appeared before the Respondent Board on 17/12/2014, and the minutes presented to Court showed he was given an opportunity to defend himself against the accusations. The procedural requirements of Section 41 of the Employment Act 2007 were therefore satisfied, even though the substantive reasons for dismissal were not proved.
Whether the termination was unfair
The dismissal was unfair and unjustified because the employer failed to prove valid reasons, even though procedure was fair.
Under Section 45(2) of the Employment Act, a termination is unfair if the employer fails to prove a valid and fair reason and fair procedure. Having found the procedure fair but the reasons invalid, the court declared the dismissal unfair and unjustified and moved to remedies.
Respondent's assertion that the Claimant owed it money
No finding against the Claimant; the Respondent failed to lead evidence and made no counterclaim.
The Respondent loosely alleged the Claimant owed it about Kshs 2,117,774.57 but led no evidence to prove this and filed no counterclaim. The claim therefore remained unproved and no prayers were made for the amounts pleaded.
Legal principles established
#- The burden of justifying the grounds for termination of employment rests on the employer.
- For a dismissal to be fair, the employer must prove both valid reasons and a fair procedure.
Court orders
#- 1.3 months' salary in lieu of notice = 540,000/= as per the contract dated 17/7/2012
- 2.Accumulated leave days admitted by the Respondent in the dismissal letter = 581,940/=
- 3.Unpaid salary for October 2014 to 13th January 2015 = 432,940/=
- 4.Unpaid gratuity admitted by RW2 = 446,400/=
- 5.8 months' salary as damages for unlawful termination = 1,440,000/=
- 6.Total award of 3,141,280/= to the Claimant
- 7.Respondent to pay costs of the suit plus interest at Court rates with effect from the date of the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act (Cause filed under the Employment Act 2007)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Maxwell Agutu Maigo v Kenya National Trading Corporation Limited [2018] KEELRC 1495 (KLR)", Case Analysis (2018). Cause No. 112 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1495/eng@2018-06-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.