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ELRCPartially AllowedNot stated in the judgment as provided· [2018] KEELRC 1498 (KLR)

Wilson Kitere v Board of Governors Lugulu Mission Hospital [2018] KEELRC 1498 (KLR)

Employment and Labour Relations Court
12 July 2018
1,130 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~5 min to read original · ~4 min brief

The bottom line

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A Kenyan hospital was ordered to pay a former director over Kshs.600,000 because it fired him without a valid reason or fair hearing.

What this practically means

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Executive summary

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The Claimant, formerly Director of Administration and Personnel of the Respondent hospital, sued for compensation for wrongful and unfair termination of employment and terminal benefits, comprising arrear salary of Kshs.1,466,986 accrued during interdiction, notice pay, leave pay, a certificate of service, costs and interest. He was employed on 15th July 2011 on a three-year fixed term contract with a gross salary of Kshs.63,782. After adverse articles appeared in the Citizen weekly newspaper about the hospital, the Board issued him a warning letter without hearing him, and on 20th August 2012, without notice of the agenda, his employment was terminated before expiry of the contract over allegations that he had raised concerns at a CHAK meeting. The Respondent alleged termination for misconduct and insubordination but called no witness; its defence was closed after it failed to attend the hearing of 15th March 2018. The court found the Claimant's uncontroverted, credible evidence established that there was no valid reason for termination and no fair procedure, violating sections 41, 43 and 45 of the Employment Act, 2007. Applying section 49(1)(c) and (4), and guided by the Court of Appeal decision in Kenfreight (E.A) Limited v Benson K. Nguti (12 months' compensation), the court awarded ten months' salary in compensation computed on a gross salary of Kshs.55,000 (the hospital having housed him), plus one month's notice pay and Kshs.11,381 arrear salary for August 2012, a total of Kshs.616,381 with interest. Judgment was delivered at Kisumu on 12th July 2018 by Mathews N. Nduma, Judge.

Key legal issues

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01

Whether the termination was for a lawful reason and by fair procedure

Holding

The termination was wrongful and unfair; the Respondent adduced no evidence of misconduct and violated sections 41, 43 and 45 of the Employment Act, 2007

Reasoning

The Claimant testified that he was ambushed with unfounded allegations of bad publicity without notice of the agenda and without an opportunity to defend himself. The Respondent did not call any witness, having closed its defence by default. His uncontroverted, credible evidence stood as proof. No evidence of misconduct was tendered, so the Board had neither a valid reason nor a fair procedure.

p. 2
02

Whether the Claimant is entitled to the reliefs sought

Holding

The Claimant was awarded ten months' salary in compensation, notice pay and arrear salary; gross salary held to be Kshs.55,000 as the hospital housed him

Reasoning

Under section 49(1)(c) as read with section 49(4) of the Employment Act, compensation considers the two years remaining on the fixed term contract, the Claimant's non-contribution to the termination, and the loss and damage suffered. Guided by the Court of Appeal's award of 12 months' salary in Kenfreight, the court exercised discretion to award 10 months. Gross salary was assessed at Kshs.55,000 since the Respondent pleaded the hospital housed the Claimant.

p. 2

Legal principles established

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  • An employer must prove both a valid reason and a fair procedure for termination; failure violates sections 41, 43 and 45 of the Employment Act, 2007
  • Uncontroverted evidence stands as proof, and compensation up to twelve months' salary may be awarded for unfair termination under section 49 of the Employment Act

Court orders

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  1. 1.Kshs.550,000 being 10 months salary in compensation for unfair and unlawful termination
  2. 2.Kshs.55,000 in lieu of notice
  3. 3.Kshs.11,381 arrear salary for August, 2012
  4. 4.Total award Kshs.616,381 payable with interest at court rates from date of filing suit in respect of notice pay and arrear salary, and from date of judgment in respect of compensation, till payment in full

Authorities

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Legislation

  • Employment Act, 2007sections 41, 43 and 45
  • Employment Act, 2007section 49(1)(c) as read with sub-section 49(4)

Cases cited (1)

  • Kenfreight (E.A) Limited Vs. Benson K. Nguti
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 41, 43, 45, 49 invoked)

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, "Wilson Kitere v Board of Governors Lugulu Mission Hospital [2018] KEELRC 1498 (KLR)", Case Analysis (2018). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1498/eng@2018-07-12

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