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ELRCPartially AllowedCause No 263 of 2018· [2018] KEELRC 1947 (KLR)

Victoria Ipomai v Sanlam Kenya PLC [2018] KEELRC 1947 (KLR)

Employment and Labour Relations Court
21 May 2018
1,707 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 stopped an employee's disciplinary hearing set for South Africa because the employer hadn't followed its own HR rules.

What this practically means

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Executive summary

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The applicant, Group Chief Finance Officer of Sanlam Kenya PLC, was summoned to a meeting in February 2018 where she was told investigations had found her culpable and that the parties would mutually separate. Negotiations on a draft Mutual Termination Agreement followed, during which her advocates made demands including compensation and benefits. Instead of responding, the Respondent invited her to a disciplinary hearing in Cape Town, South Africa on 8 March 2018, facing six allegations. She moved the Court on 5 March 2018 seeking a stay of that hearing, and the Court granted interim stay pending inter partes hearing. In its ruling, the Court declined to delve into factual disputes, holding that the applicable framework was the employment contract, the Respondent's HR Policy and Procedures Manual, the Employment Act, 2007 and the Constitution. Applying section 4.3.4 of the Manual, which requires disciplinary cases involving senior employees to be determined by the Human Resources Board Committee, the Court found the constituted committee - chaired by an external Labour Relations Advisor with no express policy provision for external participation - was improperly constituted. Relying on The Post Office v Strange and Gunton, the Court held that failure to observe internal disciplinary procedures may amount to repudiation of contract. Drawing on Kenyan and South African authority, it confirmed jurisdiction to intervene in disciplinary processes only in exceptional cases with compelling reasons. Finding exceptional circumstances in the Kenyan situs of the contract and the doubt over applicable protections for a hearing in Cape Town, the Court stayed the Cape Town hearing pending determination of the Claim, while leaving domestic disciplinary proceedings unaffected, with costs in the Cause.

Key legal issues

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01

Proper constitution of the disciplinary committee

Holding

The committee was not properly constituted under the Respondent's own HR Policy, which requires disciplinary cases involving senior employees to be determined by the Human Resources Board Committee

Reasoning

Section 4.3.4 of the HR Policy and Procedures Manual requires disciplinary cases involving senior employees to be cascaded by the Chief Executive to the Human Resources Board Committee, which determines the case. The committee constituted comprised a Labour Relations Advisor with no evidence of Board or Committee membership, and other members whose membership of the HR Board Committee was not established. Since the Manual made no express provision for external experts, the committee was improperly constituted.

p. 2
02

Jurisdiction to intervene in a disciplinary process

Holding

The Court has jurisdiction to intervene but only in exceptional cases with compelling reasons, such as grave injustice and lack of alternative means of attaining justice

Reasoning

Drawing on authorities including KPAWU v Finlays and Aviation & Allied Workers Union v Kenya Airways, the Court held that intervention in pending disciplinary processes is reserved for exceptional cases. Compelling reasons include grave injustice to the employee and absence of alternative means of attaining justice. The Court found such exceptional circumstances here, warranting intervention by way of a stay.

p. 3
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Holding a disciplinary hearing outside Kenya

Holding

Holding the hearing in Cape Town without a clear agreement on applicable law casts doubt on whether the protections assured to the employee under Kenyan law would be observed

Reasoning

The employment contract was concluded and performed in Kenya, the parties are domiciled in Kenya, and the contract is subject to Kenyan law. Holding the disciplinary hearing outside the Court's jurisdiction, in Cape Town, without a clear agreement as to the applicable law left doubt whether the statutory and constitutional protections assured to the employee would be observed, constituting an exceptional circumstance justifying intervention.

p. 3

Legal principles established

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  • An employer with a disciplinary policy must scrupulously comply with it; failure to observe internal disciplinary procedures may amount to repudiation of contract
  • The Court may intervene in a disciplinary process only in exceptional cases where compelling reasons are shown

Court orders

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  1. 1.Pending the hearing and determination of the Claim, the intended disciplinary hearing against the applicant scheduled for 8 March 2018 or any other date in Cape Town, South Africa is stayed
  2. 2.The Court has not interdicted disciplinary proceedings within Kenya in accordance with the Respondent's HR Policies and Procedures Manual
  3. 3.Costs in the Cause

Authorities

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Legislation

  • Employment Actsection 12
  • Employment Actsection 41
  • Constitution of Kenyanot specified
  • HR Policy and Procedures Manual (Sanlam Kenya PLC)section 4; section 4.3.4

Cases cited (7)

  • The Post Office v Strange
    (1981) IRLR 515
  • Gunton v Richmond-upon-Thames LBC
    (1980) ICR 755
  • Kenya Plantation & Agricultural Workers Union v Finlays Horticulture Kenya Ltd
    (2015) eKLR
  • Rebecca Ann Maina & 2 Ors v Jomo Kenyatta University of Agriculture and Technology
    (2014) eKLR
  • Aviation & Allied Workers Union v Kenya Airways Ltd
    (2012) eKLR
  • Joseph Mutura Mberia & Ar v Council of Jomo Kenyatta University of Agriculture and Technology (JKUAT)
    (2013) eKLR
  • Booysen v The Minister of Safety and Security & Or
    (2011) 1 BLLR 83 (LAC)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the Constitution of Kenya

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Victoria Ipomai v Sanlam Kenya PLC [2018] KEELRC 1947 (KLR)", Case Analysis (2018). Cause No 263 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1947/eng@2018-05-21

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