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ELRCPartially AllowedCause No. 6 of 2012· [2018] KEELRC 1707 (KLR)

Loice Anyango v James Finlay (K) Ltd [2018] KEELRC 1707 (KLR)

Employment and Labour Relations Court of Kenya
20 June 2018
2,854 words in judgment
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The bottom line

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What this practically means

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Executive summary

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Loice Anyango, a permanent employee of James Finlay (K) Ltd (P/No.31149), claimed she was unlawfully and unprocedurally dismissed on 26th September 2013, alleging she was denied a fair hearing, and sought a declaration of nullity, remuneration until reinstatement, or in the alternative, outstanding salary, notice pay and 12 months' compensation. The respondent contended she was dismissed for using abusive language against a Group Manager, that she received a show cause letter, responded, and attended a disciplinary hearing on 25th September 2013 with KPAWU shop stewards, where she allegedly requested to be relieved of her duties, and was paid terminal dues including two months' notice pay and gratuity under the CBA. The matter proceeded by written submissions. The court held the time-bar issue was res judicata following a ruling of 17th October 2017. On the merits, it found the respondent's case deficient: no show cause letter, no invitation to the disciplinary hearing, no evidence of the charges, no production of the claimant's response, muddled disciplinary minutes, and no documentary proof of payment of terminal dues. Applying sections 41 and 45 of the Employment Act, the court found the termination unlawful. Judgment was entered for the claimant for one month's salary in lieu of notice (Kshs.10,379.00) and eight months' salary as compensation (Kshs.83,032.00), totalling Kshs.93,411.00, with costs to the claimant. Delivered by D.K.N. Marete, J on 20th June 2018 at Kericho.

Key legal issues

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01

Whether the claim is statutorily time barred

Holding

The issue was already decided in a ruling of 17th October 2017 and is spent and res judicata; no further consideration was required.

Reasoning

The court noted that the time-bar question had been tried and determined in a ruling delivered on 17th October 2017. It declined to reopen the matter, holding the issue res judicata, and proceeded to determine the remaining issues on the merits of the unfair termination claim.

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02

Whether the termination of the claimant's employment was wrongful, unfair and unlawful

Holding

The termination was unlawful; the respondent failed to prove a valid reason and fair procedure.

Reasoning

The court found the respondent's case riddled with gaps: no suspension or show cause letter produced, no letter inviting the claimant to the disciplinary hearing, no evidence of the charges, no production of the claimant's response, no admission of guilt, and disciplinary minutes that were muddled and not an expression of an open and fair hearing. There was also no evidence of payment of terminal dues. On a balance of probability, unlawful termination was established.

p. 6
03

Whether the claimant is entitled to the relief sought

Holding

Yes, the claimant is entitled to relief, granted as one month's salary in lieu of notice and eight months' compensation for unfair termination.

Reasoning

Having succeeded on the claim of unlawful termination, the claimant was held entitled to relief. The court awarded one month's salary in lieu of notice (Kshs.10,379.00) and eight months' salary as compensation for unlawful termination (Kshs.83,032.00), totalling Kshs.93,411.00, rather than the twelve months' maximum compensation sought.

p. 6

Legal principles established

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  • An employer who alleges payment of terminal dues on termination must adduce documentary evidence in support, failing which the defence is weakened.
  • Disciplinary proceedings should be clear and comprehensible to the employee and participants; muddled proceedings do not amount to a fair hearing.

Court orders

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  1. 1.One (1) month's salary in lieu of notice of Kshs.10,379.00
  2. 2.Eight (8) months' salary as compensation for unlawful termination of employment, Kshs.10,379.00 x 8 months = Kshs.83,032.00
  3. 3.Total award of Kshs.93,411.00
  4. 4.The costs of the claim to be borne by the respondent

Authorities

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Legislation

  • Employment Act, 2007section 45(1), (2) and (3)
  • Employment Act, 2007section 41(1)
  • Employment Act, 2007section 42(1)
  • Employment Act, 2007section 44(3)
  • Employment Act, 2007section 44(4)(d)
  • Employment Act, 2007section 5(7)(c)

Cases cited (3)

  • Kenya Union of Commercial Food & Allied Workers v North Farmers Sacco Ltd
    cause no. 74 of 2013
  • Mary Chemweno Kiptui v Kenya Pipeline Company Limited
    (2014) eKLR
  • Joseph Wambugu Kimenchu v Attorney General
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (as a first-instance employment cause)

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, "Loice Anyango v James Finlay (K) Ltd [2018] KEELRC 1707 (KLR)", Case Analysis (2018). Cause No. 6 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1707/eng@2018-06-20

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