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ELRCPartially AllowedCause No 2630 of 2016· [2019] KEELRC 573 (KLR)

Maurice Omondi Anguka v Light Academy [2019] KEELRC 573 (KLR)

Employment and Labour Relations Court of Kenya
11 October 2019
1,442 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's termination of a teacher was unfair because it failed to hear him before firing, earning him Kshs 740,000.

What this practically means

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Executive summary

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The Claimant, a teacher employed by Light Academy from 2010, was on a 3-year fixed term contract dated 1 July 2014. On 30 June 2015 the Respondent issued a notice of termination effective 1 September 2015. The Claimant sued in December 2016 alleging unlawful termination and breach of contract; the Respondent justified the termination on grounds of failure to fulfil contractual obligations and poor performance. The Court held that the notice satisfied both the statutory 28-day requirement under section 35(1)(c) of the Employment Act, 2007 and the contractual 2-month notice period. However, the notice did not set out the reasons for termination or invite representations, and the Respondent had decided to terminate before affording the Claimant a hearing as required by section 41. The termination was therefore procedurally unfair, making it unnecessary to consider substantive fairness under sections 43 and 45. The discrimination claim failed for lack of a pleaded remedy and evidential burden, and the coercion claim over the Discharge Voucher failed for want of particulars. Remedies: compensation equivalent to 8 months' gross wages (Kshs 740,000/-); reinstatement declined as over 3 years had passed; lost income for the unexpired contract term declined, applying Bank of Uganda v Tinkamanyire; a certificate of service to be issued within 15 days. The Claimant was awarded costs. Delivered at Nairobi on 11 October 2019 by Radido Stephen, Judge.

Key legal issues

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01

Adequacy of the termination notice

Holding

The 30 June 2015 notice with effect from 1 September 2015 met both the contractual (2 months) and statutory (28 days) notice requirements

Reasoning

Section 35(1)(c) of the Employment Act, 2007 requires at least 28 days' written notice for monthly-paid employees. The Claimant's contract provided for 2 months' notice. The notice issued on 30 June 2015 with effect from 1 September 2015 satisfied both prescriptions, so the notice requirement was properly met.

p. 1
02

Procedural fairness (section 41 hearing)

Holding

The termination was procedurally unfair because the Respondent decided to terminate before affording the Claimant an opportunity to make representations; the notice did not set out the reasons or invite a response

Reasoning

Section 41 obligates an employer to hear an employee before terminating on grounds of misconduct, poor performance or incapacity. A section 35 notice can serve as a show cause only if it sets out the allegations and requests representations. The notice here did not set out reasons. Informal warnings and a disputed document (minutes of 16 June 2015 meeting, not referenced by the Deputy Head Teacher) were given no weight.

p. 2
03

Substantive fairness

Holding

Not considered; unnecessary given the finding of procedural unfairness

Reasoning

Having concluded that the termination was procedurally unfair, the Court held it unnecessary to determine whether the Respondent discharged its burden under sections 43 and 45 of the Employment Act, 2007 to prove the reasons for termination.

p. 2
04

Discrimination claim

Holding

Failed; the Claimant did not seek a remedy for discrimination and did not discharge the evidential burden of showing differential treatment

Reasoning

Although discrimination was pleaded, no remedy was sought. On the evidence, the Respondent showed that of three teachers who had not complied with Teachers Service Commission registration requirements, one was dismissed while two were given ultimatums to register, undermining the claim of unequal treatment.

p. 2
05

Whether the Discharge Voucher was signed under coercion

Holding

Claim rejected; the Claimant did not disclose who coerced him or how

Reasoning

The Claimant received the termination notice in June 2015 and signed the Discharge Voucher in September 2015. Despite alleging trickery, coercion and manipulation, he gave no particulars of who coerced him or how, so the allegation failed on the evidence.

p. 3
06

Appropriate compensation

Holding

Eight months' gross wages (Kshs 740,000/-) awarded as compensation for the procedurally unfair termination

Reasoning

The Claimant was on a 3-year fixed term contract with about 2 years remaining and an expectation of transition to permanent and pensionable terms. Taking these factors into account, the Court considered the equivalent of 8 months' gross wages appropriate, based on the gross salary at separation of Kshs 92,500/- per the September 2014 pay slip.

p. 3

Legal principles established

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  • A written notice of termination under section 35(1)(c) of the Employment Act may serve a dual purpose, including as a show cause notice, but must set out the reasons prompting termination to do so
  • Where termination is on account of misconduct, poor performance or physical incapacity, the employer must afford the employee a hearing by setting out the allegations and requiring a response before deciding to terminate
  • An employee whose contract is terminated prematurely is not entitled to compensation for the unexpired remainder of the contract or up to retirement

Court orders

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  1. 1.A declaration/finding that the termination of the Claimant's employment was procedurally unfair
  2. 2.Award of compensation equivalent to 8 months' gross wages, quantified at Kshs 740,000/-
  3. 3.The Respondent to issue a certificate of service to the Claimant within 15 days if not already issued
  4. 4.The Claimant to have costs of the suit

Authorities

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Legislation

  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 45

Cases cited (1)

  • Bank of Uganda v Tinkamanyire
    (2009) 2 EA 66
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (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, "Maurice Omondi Anguka v Light Academy [2019] KEELRC 573 (KLR)", Case Analysis (2019). Cause No 2630 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/573/eng@2019-10-11

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