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ELRCPartially AllowedCause Number 1047 of 2010· [2018] KEELRC 2302 (KLR)

Philip N. Mulwa v African Apparels Epz Limited [2018] KEELRC 2302 (KLR)

Employment and Labour Relations Court of Kenya
16 February 2018
980 words in judgment
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The bottom line

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A Kenyan court ruled that even where an employee may be at fault, firing them without a hearing makes the dismissal unfair and payable.

What this practically means

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Executive summary

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The claimant, employed by the respondent on 30th April 2007 as a store assistant in-charge, sued after his services were terminated on 11th January 2010, averring the termination was unlawful, effected without warning or hearing, and without payment of terminal dues. The respondent maintained the dismissal followed the employment contract and the Employment Act, alleging that 6,793 meters of fabric were unaccounted for in the stores under the claimant's charge, amounting to negligence occasioning great loss, and that his dues for days worked and accrued leave were paid into his bank account. In evidence, the claimant explained that he himself discovered the missing rolls, reported the matter, was interviewed by police but never charged, and was issued a dismissal letter without a disciplinary hearing. The respondent's witness conceded there was no record of any meeting before the dismissal. The court held that a lawful dismissal requires both valid and justifiable reasons and a fair procedure with an opportunity to be heard. Although the loss of fabric could constitute negligence justifying dismissal substantively, there was no evidence the claimant was called upon to explain the loss before dismissal, contrary to section 45 of the Employment Act. The dismissal was therefore procedurally unfair. The court awarded one month's salary in lieu of notice (KShs 25,000), seven days' wages for January 2010 (KShs 5,833), six months' salary as compensation (KShs 150,000), and costs of the suit, subject to taxes and any terminal dues already paid.

Key legal issues

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01

Fair procedure before dismissal

Holding

The dismissal was procedurally unfair because the claimant was not given an opportunity to explain the loss before dismissal

Reasoning

Although some fabric went missing and the claimant, as head of stores, bore ultimate responsibility, no evidence showed he was called upon to explain the loss before dismissal. The dismissal letter referred to a discussion with the human resource manager but did not disclose that he was asked to account for the loss. This violated section 45 of the Employment Act, which requires the employee to be furnished with reasons and given an opportunity to explain before dismissal.

p. 2
02

Substantive justification for dismissal

Holding

The loss of fabric from the claimant's department could amount to negligence justifying dismissal

Reasoning

The court accepted that some fabric went missing and that the claimant, as the person in charge of stores, bore ultimate responsibility. A loss which cannot be reasonably explained amounts to negligence on his part for which he could be validly dismissed. However, this potential substantive justification could not save the dismissal because the procedural requirements were not met.

p. 2

Legal principles established

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  • A valid dismissal requires both substantive justification (valid and justifiable reasons) and a fair procedure including an opportunity to be heard
  • Failure to adhere to the twin requirements of valid reasons and fair procedure renders a dismissal unfair

Court orders

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  1. 1.One month's salary in lieu of notice of KShs 25,000
  2. 2.Seven days wages for January 2010 of KShs 5,833
  3. 3.Six months' salary as compensation for unfair termination of KShs 150,000
  4. 4.Costs of the suit to the claimant
  5. 5.The award to be subject to taxes and any terminal dues already paid to the claimant
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (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, "Philip N. Mulwa v African Apparels Epz Limited [2018] KEELRC 2302 (KLR)", Case Analysis (2018). Cause Number 1047 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2302/eng@2018-02-16

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