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ELRCPartially AllowedNot stated in the judgment· [2018] KEELRC 2482 (KLR)

Richard Owory Oluoch v Board of Management Butula Boys’ High School [2018] KEELRC 2482 (KLR)

Employment and Labour Relations Court
1 February 2018
1,544 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan school wrongly fired its storekeeper without a fair hearing and had to pay him over Kshs. 210,000 plus withheld salary and costs.

What this practically means

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Executive summary

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The Claimant, formerly an Artisan and later School Storekeeper at Butula Boys High School from August 2008, sued the Respondent Board of Management for unfair termination. He was suspended on 27th May 2015 on half salary, interdicted on 1st July 2015 over alleged mysterious losses of maize and beans worth Kshs. 1,274,220, alleged collusion with suppliers, and alleged incompetence and corruption, and was dismissed after two appearances before the Board. The Respondent filed appearance but no defence and did not attend the hearing. The court framed two issues: whether the dismissal was unfair and whether the Claimant was entitled to the reliefs sought. Holding that fair termination requires compliance with sections 41 and 43 of the Employment Act, the court found the process unfair: the hearing invitation did not specify the charges, the Claimant was neither asked to defend himself nor offered representation by a fellow employee or union official, suspension and interdiction were not provided for in his terms of service, and he was kept on interdiction for over a year. Reinstatement was refused for want of exceptional circumstances under section 49(4) and likely strained relations. The court awarded refund of salary withheld from June 2015 to July 2016, one month's salary in lieu of notice (Kshs. 16,190) and maximum compensation of 12 months' salary (Kshs. 194,280), but declined unpaid annual leave and salary for remaining years of service as unproved and not tenable in law. The Respondent was ordered to pay costs, with interest on the decretal sum at court rates from the date of judgment.

Key legal issues

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01

Whether the dismissal was procedurally fair under section 41 of the Employment Act

Holding

The dismissal was unfair: the hearing letter did not specify charges, the Claimant was not given an opportunity to defend himself, not offered representation by a fellow employee or union official, and was kept on suspension/interdiction for over a year without authority in his terms of service

Reasoning

The court found the Respondent did not act in accordance with justice and equity: suspension and interdiction carried no explanation and no reference to contractual authority; the interdiction ran from May 2015 to July 2016, an inordinately long period; the invitation to hearing did not specify charges and the Claimant was not asked to defend himself nor offered representation as section 41 prescribes. The dismissal was therefore procedurally unfair notwithstanding the charges levelled.

p. 3
02

Whether the Claimant was entitled to compensation for unfair termination

Holding

Maximum compensation of 12 months' salary (Kshs. 194,280) awarded, taking into account service in excess of 8 years

Reasoning

Having found the dismissal unfair, the court exercised its discretion under section 49 of the Employment Act, taking the length of service (in excess of 8 years) into account and awarding the maximum 12 months' gross salary, computed on the Claimant's monthly salary of Kshs. 16,190.

p. 4

Legal principles established

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  • Fair termination requires compliance with both section 41 (procedure) and section 43 (valid reason) of the Employment Act
  • Suspension and interdiction are lawful only if provided for in the employee's terms and conditions of employment
  • Reinstatement under section 49(4) is available only in exceptional circumstances

Court orders

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  1. 1.All salary withheld during suspension and interdiction from June 2015 to July 2016 to be refunded to the Claimant; no pay for August 2016
  2. 2.One month's salary in lieu of notice in the sum of Kshs. 16,190
  3. 3.Maximum compensation of 12 months' salary for unfair termination in the sum of Kshs. 194,280
  4. 4.The prayer for unpaid annual leave dismissed as not proved
  5. 5.The prayer for salary for remaining years of service declined; reinstatement not granted
  6. 6.Respondent to pay the Claimant's costs; decretal sum to attract interest at court rates from date of judgment

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 49(4)

Cases cited (2)

  • Engineer Francis N. Gachuri v Energy Regulatory Commission
  • Elizabeth Wakanyi Kibe
Jurisdiction invoked
Original jurisdiction under the Employment Act (sections 41, 43, 49(4)) in an unfair termination claim

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, "Richard Owory Oluoch v Board of Management Butula Boys’ High School [2018] KEELRC 2482 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2482/eng@2018-02-01

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