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ELRCPartially AllowedCause No. 287 of 2015· [2019] KEELRC 39 (KLR)

Nancy Wangui Mwangi v Optica Limited [2019] KEELRC 39 (KLR)

Employment and Labour Relations Court of Kenya at Nakuru
17 December 2019
4,778 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court upheld Optica's summary dismissal because the employee ignored hearing notices sent to her postal address, winning only unpaid wages.

What this practically means

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Executive summary

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The claimant, employed by the respondent from April 1998 as an Optician Assistant, claimed unconditional reinstatement, accrued wages and allowances during an alleged suspension from March 2013 to June 2015 (Ksh.623,160), house allowance of Ksh.214,357, unpaid salary, disclosure of investigations and an injunction against intimidation. The respondent maintained that the claimant was issued warning letters for insubordination and misuse of her mobile phone, was investigated over a customer's cash payment for spectacles without a receipt, was invited to a disciplinary hearing by registered mail to her provided postal address, failed to attend, and was summarily dismissed on 13th May, 2013. The court found the governing contract was the signed letter of 18th September, 2003, the unsigned appointment letter of 8th September, 2012 being of no effect, so statutory terms under the Employment Act, 2007 applied from 2nd June, 2008. Hearing notices sent by registered mail to the claimant's stated postal address were properly served under section 10(2) of the Act, and her failure to attend was without justification. The summary dismissal was therefore justified and reinstatement was unavailable. House allowance and underpayment claims failed because payment vouchers showed house allowance was paid and wages exceeded the applicable minimum wage. The disclosure claim was overtaken by events. The claim was dismissed save for wages due from April 2013 to 13th May, 2013 totalling Ksh.33,081.30, with 25% of the claimant's costs awarded.

Key legal issues

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01

Governing contract of employment

Holding

The parties remained governed by the signed letter of appointment dated 18th September, 2003; the unsigned letter dated 8th September, 2012 was of no effect

Reasoning

The court read all letters issued to the claimant. The letter of 18th September, 2003 was signed by the respondent and stated a consolidated wage of Ksh.7,000. The later appointment letter dated 8th September, 2012 was neither signed by the respondent nor accepted by the claimant, so it had no intrinsic value and the statutory terms of the Employment Act, 2007 applied from 2nd June, 2008.

p. 3
02

Service of disciplinary hearing notices

Holding

Notices sent by registered mail to the claimant's provided postal address (P.O. Box 13788, Nakuru) were properly served; the claimant's failure to attend the hearing was without justification

Reasoning

Section 10(2) of the Employment Act permits the employer to use contact details supplied by the employee. The claimant used the same postal address in her letters to the labour officer and in her pleadings, and there was no evidence of any notice of change of address. Copies were sent to the labour officer as required, so service was proper.

p. 7
03

Justification of summary dismissal

Holding

The summary dismissal of 13th May, 2013 was upon due process and justified

Reasoning

The claimant was warned on 28th November, 2012 over use of her mobile phone and visitors during work hours, admitted the conduct in her response, and failed to give a reasonable justification for receiving cash from a customer without issuing a receipt. Having been duly invited to a disciplinary hearing and failing to attend, the dismissal following the hearing notice was justified.

p. 7
04

Wages accrued up to termination

Holding

The claimant remained an employee until the summary dismissal of 13th May, 2013 and is owed wages for April 2013 and 13 days of May 2013, totalling Ksh.33,081.30

Reasoning

The payment statement annexed to the claim confirmed payment of the March 2013 wage of Ksh.23,080 gross. The respondent confirmed no payment after that date. Whatever the reasons leading to the summary dismissal, the claimant remained employed until 13th May, 2013, so wages for April and part of May are due.

p. 7

Legal principles established

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  • An employer with oral or casual terms of employment must reduce them into writing and convert casual terms into terms regulated under the law
  • In the absence of a signed contract, employment becomes governed by the statutory minimum terms and conditions under the Employment Act, 2007
  • An employer may apply the contact details provided by the employee in communications, including sending hearing notices by registered mail, with a copy to the labour officer
  • An employer may suspend an employee to allow for investigations and thereafter call the employee to show cause or to a hearing

Court orders

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  1. 1.The claimant's claims are dismissed
  2. 2.The respondent shall pay the claimant the due wage from April, 2013 to 13th May, 2013 totalling Ksh.33,081.30
  3. 3.The claimant is awarded 25% of her costs

Authorities

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Legislation

  • Employment Act, 2007section 7
  • Employment Act, 2007section 8
  • Employment Act, 2007section 10
  • Employment Act, 2007section 10(2)
  • Employment Act, 2007section 12
  • Employment Act, 2007section 37
  • Employment Act Cap 226 (repealed)not specified
  • Regulation of Wages (General), (Amendment) Order, 2012minimum wage provisions (effective 1st May, 2012 to 30th April, 2013)

Cases cited (3)

  • Kenyatta University & another versus Fred Obare
    [2017] eKLR
  • Peter Maina Kinyanjui versus Woolmart Supermarket Limited
    Cause No.113 of 2016 (Nakuru)
  • Mary Chemweno Kiptui versus Kenya Pipeline Company Limited
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment 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, "Nancy Wangui Mwangi v Optica Limited [2019] KEELRC 39 (KLR)", Case Analysis (2019). Cause No. 287 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/39/eng@2019-12-17

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