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ELRCPartially AllowedCause (ELRC, Nairobi) – interlocutory application of 23 February 2018· [2018] KEELRC 1959 (KLR)

Evans Nyagah Njoki v Sanlam Kenya PLC [2018] KEELRC 1959 (KLR)

Employment and Labour Relations Court
21 May 2018
1,737 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 employer from holding a disciplinary hearing abroad because it ignored its own HR policy in setting up the committee.

What this practically means

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Executive summary

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The claimant, Head of Corporate Services at Sanlam Kenya PLC (formerly Pan Africa Insurance Holdings Ltd), was summoned to a meeting on 1 February 2018 where he was handed a draft Mutual Termination Agreement with two hours to decide or face disciplinary action. After he rejected the deal, his email account was disabled and he was invited to a disciplinary hearing in Cape Town, South Africa on 8 March 2018 to answer six allegations. He moved the Employment and Labour Relations Court on 23 February 2018 seeking injunctions to stop the hearing, protection from harassment or dismissal, and payment of withheld variable pay of Kshs 30,871,974.00. The Court granted an ex-parte stay and, after inter partes hearings, delivered this interlocutory ruling on 21 May 2018. Radido J held that the disciplinary committee was not properly constituted under the Respondent's own HR Policy and Procedures Manual, since disciplinary cases involving senior employees must be determined by the Human Resources Board Committee, and external participation requires express provision. 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. While acknowledging jurisdiction to intervene in disciplinary processes only in exceptional cases, the Court found exceptional circumstances: the contract was concluded and performed in Kenya under Kenyan law, and holding the hearing in Cape Town cast doubt on the statutory protections. The Court stayed the Cape Town hearings pending trial, expressly leaving domestic disciplinary proceedings untouched, and awarded costs in the Cause.

Key legal issues

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01

Proper constitution of disciplinary committee under employer's internal policy

Holding

The committee constituted to hear the applicant's case did not conform to the HR Policy and Procedures Manual, which requires the case to be cascaded to the Human Resources Board Committee for determination

Reasoning

Section 4.3.4 of the Manual requires disciplinary cases involving senior employees to be initiated by the Chief Executive and determined by the Human Resources Board Committee. The committee instead comprised an external Labour Relations Advisor with no evidence of Board membership, a Regional Executive, and an observer. The Court held the committee was not properly constituted, noting external participation requires express provision in the disciplinary procedures.

p. 2
02

Court's jurisdiction to intervene in a pending 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 remedies

Reasoning

Drawing on authorities including Finlays Horticulture, JKUAT cases and Aviation & Allied Workers Union, the Court affirmed intervention is exceptional. It found exceptional circumstances here: the employment contract was concluded and performed in Kenya, governed by Kenyan law, and holding the hearing in Cape Town without agreement on applicable law cast doubt on whether statutory protections under the Employment Act would be observed.

p. 3
03

Effect of non-compliance with internal disciplinary procedures

Holding

Failure by an employer to observe its own disciplinary procedures may amount to repudiation of the contract of employment

Reasoning

Relying on The Post Office v Strange and Gunton v Richmond-upon-Thames LBC, the Court treated internal disciplinary policies as contractual obligations. The Respondent's HR Manual must also be read in light of section 12 of the Employment Act, 2007, which requires employers to have a disciplinary policy. Non-compliance therefore carries legal consequences beyond mere irregularity.

p. 3

Legal principles established

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  • An employer who has a disciplinary policy should scrupulously comply with it; failure to observe own 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
  • Where an external expert chairs or participates in a disciplinary hearing, there must be express provision for it in the disciplinary procedures

Court orders

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  1. 1.Pending the hearing and determination of the Claim, the intended disciplinary hearings against the applicant scheduled for 7 March 2018 or any other date in Cape Town, South Africa are stayed
  2. 2.For clarity, disciplinary proceedings within Kenya in accordance with the Respondent's HR Policies and Procedures Manual are not interdicted
  3. 3.Costs in the Cause

Authorities

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Legislation

  • Employment Actsection 12
  • Employment Actsection 41
  • Constitution of Kenyanot specified
  • Respondent's HR Policy and Procedures Manualsection 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
Article 162(2) Constitution / Employment and Labour Relations Court Act (employment dispute); not expressly stated in judgment

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, "Evans Nyagah Njoki v Sanlam Kenya PLC [2018] KEELRC 1959 (KLR)", Case Analysis (2018). Cause (ELRC, Nairobi) – interlocutory application of 23 February 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1959/eng@2018-05-21

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