Clement Muia Kiio v Copy Cat Limited [2019] KEELRC 720 (KLR)
The bottom line
#A Kenyan employer was ordered to pay over KShs. 622,000 after firing an employee without a disciplinary hearing or proof of wrongdoing.
What this practically means
#Executive summary
#Key legal issues
#Validity of reason for termination
The Respondent failed to establish a valid reason for the termination.
The Respondent alleged the Claimant's password was used to create and cancel sales causing losses of about KShs. 156,399. Yet no investigations report was produced in court, one of the Respondent's own exhibits indicated the Claimant was not involved in one transaction, and the incident was never reported to the police. The burden of proving a valid reason under section 45(2)(a) was therefore not discharged.
Fair procedure under section 41 of the Employment Act
The Respondent did not follow fair procedure before terminating the Claimant.
The suspension was lifted unconditionally on 6 May 2014 with no indication that investigations remained ongoing. The termination letter then introduced a new assertion that investigations had continued. The Claimant was never called to any disciplinary hearing to answer charges, and RW1 conceded she could not produce minutes or evidence of invitations to any hearings. The procedural requirements of section 41 were therefore not met.
Unfair termination and relief
The termination was unfair and unjustified; the Claimant was awarded notice pay, unpaid leave and 10 months' compensation.
Relying on section 45(2) of the Employment Act, the court held the termination unfair because the employer proved neither a valid reason nor fair procedure. The court then assessed remedies: one month's salary in lieu of notice at the basic salary of KShs. 50,000, payment for 39 untaken leave days of KShs. 72,290.40, and compensation of 10 months' salary totalling KShs. 500,000, all less statutory deductions, plus costs and interest.
Legal principles established
#- An employer who terminates employment must prove both a valid and fair reason and adherence to fair procedure; failure on either renders termination unfair under section 45(2) of the Employment Act.
- An employer alleging losses caused by an employee must place evidence of the investigations and their findings before the court, and an employee must be called to a disciplinary hearing to answer the charges.
Court orders
#- 1.1 month's salary in lieu of notice of KShs. 50,000
- 2.Unpaid leave of 39 days at KShs. 72,290.40
- 3.10 months' salary as compensation for unlawful and unfair termination (KShs. 50,000 x 10 = KShs. 500,000)
- 4.Total award of KShs. 622,290.40 less statutory deductions
- 5.Respondent to pay costs of the suit plus interest at court rates with effect from the date of judgment
- Jurisdiction invoked
- First-instance claim under the Employment Act, 2007 (sections 41, 45(2), 35(6))
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Clement Muia Kiio v Copy Cat Limited [2019] KEELRC 720 (KLR)", Case Analysis (2019). Cause No 2199 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/720/eng@2019-09-17
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.