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ELRCPartially AllowedELRC Cause No. 179 of 2017· [2019] KEELRC 178 (KLR)

Gideon Inzayi Madahana v Session Clerk & another [2019] KEELRC 178 (KLR)

Employment and Labour Relations Court
5 December 2019
2,186 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 ruled a church school wrongly demoted and fired its Head Teacher, awarding her 12 months' salary because employers can't change key job terms without written agreement.

What this practically means

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Executive summary

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The Claimant was employed as Head Teacher of P.C.E.A Makupa Academy on a two-year renewable contract, renewed to expire on 30th December 2017. In December 2016 the Respondents sought to redeploy him as an ordinary Teacher, advertised his position while he still held office, and after he declined redeployment, subjected him to a disciplinary process. He was notified of the hearing, heard, and summarily dismissed all on 14th January 2017. The Court found the redeployment wrongful: both contracts designated him Head Teacher, a fundamental term which the contract stated could only be varied by written agreement, in line with Section 10(5) of the Employment Act. The Respondents neither consulted the Claimant nor revised the contract, and unchanged salary did not cure the demotion. The Respondents failed to substantiate the multiple allegations justifying termination; the real reason was the Claimant's refusal to step down. The same-day notice, hearing and dismissal breached Sections 41, 43 and 45 of the Employment Act. Termination was declared unfair and compensation awarded under Section 49. The Claimant received 12 months' salary (Kshs. 633,600) as compensation and one month's salary in lieu of notice (Kshs. 52,800), a total of Kshs. 686,400, with costs and interest at 14% per annum. The prayer for anticipatory salary for the unexpired contract period was refused, the Court holding the compensation award already covered that period. The claim therefore partially succeeded.

Key legal issues

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01

Validity of redeployment without contractual variation

Holding

Redeployment from Head Teacher to ordinary Teacher was a demotion and breached the contract, which could only be varied by written agreement

Reasoning

The contracts designated the Claimant as Head Teacher, a fundamental term. The contract clause required variation only by written agreement, consistent with Section 10(5) of the Employment Act. The Respondents neither consulted the Claimant nor revised the contract, and salary neutrality did not cure the breach since terms comprise more than money.

p. 3
02

Validity of reasons for termination

Holding

The Respondents failed to substantiate the multiple allegations justifying termination

Reasoning

The termination letter cited partial registration of exam candidates, failure to assume the ordinary Teacher role, and failure to teach the K.C.P.E class, but the record contained no evidence substantiating these or the omnibus allegations. The real reason was the Claimant's refusal to relinquish his Head Teacher position.

p. 3
03

Fairness of the disciplinary procedure

Holding

The procedure was unfair: the position was advertised while the Claimant was in office, and hearing notice, hearing and dismissal all occurred on the same day

Reasoning

The advertisement of the Head Teacher position in December 2016 while the Claimant still held office showed predetermination. The Claimant was notified of the disciplinary hearing on 14th January 2017, heard the same day, and dismissed the same day, depriving him of adequate preparation.

p. 3
04

Assessment of compensation

Holding

Maximum 12 months' gross salary compensation awarded under Section 49; anticipatory salary for the remainder of the contract refused

Reasoning

The Claimant had served 3 years, was highly evaluated, had his contract renewed on good performance, was paid nothing on termination, and would reasonably have expected to work until December 2017. The 12 months' compensation covered the unexpired contract period, making a further anticipatory salary award inappropriate.

p. 3

Legal principles established

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  • Where the terms and conditions of employment change, the employer must, in consultation with the employee, revise the contract and notify the employee; variation of a fundamental term such as position requires written agreement
  • Redeployment amounting to demotion of an employee from a position designated as a fundamental term of the contract, without written agreement, is wrongful
  • Termination without valid reasons and without fair procedure violates Sections 41, 43 and 45 of the Employment Act and merits compensation under Section 49

Court orders

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  1. 1.Declaration that termination was unfair
  2. 2.Respondents to pay the Claimant equivalent of 12 months' salary in compensation for unfair termination at Kshs. 633,600 and notice at Kshs. 52,800 - total Kshs. 686,400
  3. 3.Costs to the Claimant
  4. 4.Interest at 14% per annum from the date of Judgment till payment in full

Authorities

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Legislation

  • Employment Act 2007Section 10(5)
  • Employment Act 2007Section 41
  • Employment Act 2007Section 43
  • Employment Act 2007Section 45
  • Employment Act 2007Section 49
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (Sections 10, 41, 43, 45 and 49)

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, "Gideon Inzayi Madahana v Session Clerk & another [2019] KEELRC 178 (KLR)", Case Analysis (2019). ELRC Cause No. 179 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/178/eng@2019-12-05

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