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ELRCDismissed· [2019] KEELRC 956 (KLR)

Obadiah Mutuku Nguli v Real Management Services 2002) Ltd [2019] KEELRC 956 (KLR)

Employment and Labour Relations Court
31 July 2019
767 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This was a first-instance employment claim before the Employment and Labour Relations Court at Nairobi, Byram Ongaya J, in which the agreed issue, fixed by consent order of 18.06.2019, was whether the claimant was entitled to salary in lieu of notice and compensation for unlawful termination. The claimant, a caretaker at Shanzu Court in Nairobi for 17 years, was summarily dismissed by letter dated 21.01.2015 citing laziness and collusion with Kenya Power and Nairobi Water staff to extort money and solicit bribes from tenants. He testified he was not given an opportunity to explain himself and attributed his dismissal to betrayal by a co-worker. The respondent's witness, supervisor John Njiru, testified that the claimant and other caretakers failed in their duties, relying on minutes recording tenants' complaints about cleaning, water and electricity. The court found the claimant had been issued a notice to show cause dated 17.01.2015 and attended a disciplinary meeting on 20.01.2015, and that although minutes of that meeting were not kept, due process under section 41 of the Employment Act was satisfied. It further found the reason for termination valid under section 43, given the serious tenant complaints and the claimant's failure to improve despite warnings. The claim for notice pay and compensation was dismissed. Because the claimant had partially succeeded via the consent partial judgment of 18.06.2019 (Kshs.33,208.00), the respondent was ordered to pay that sum plus Kshs.10,000.00, totaling Kshs.43,208.00 by 15.09.2019, with interest at court rates on default, and fixed partial costs of Kshs.10,000.00.

Key legal issues

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01

Whether the claimant's summary dismissal was procedurally fair under section 41 of the Employment Act

Holding

The dismissal was procedurally fair; the claimant was given notice to show cause and attended a disciplinary hearing

Reasoning

The claimant was issued a notice to show cause dated 17.01.2015 to attend a disciplinary meeting on 20.01.2015, which he attended. Though his evidence was contradictory, he confirmed attending and that his defence was that he had been betrayed. This matched the respondent's witness's testimony. Minutes of the 20.01.2015 meeting were not kept, but the court found the hearing itself satisfied section 41.

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02

Whether the reason for termination was valid under section 43 of the Employment Act

Holding

The reason was valid; tenants had made serious complaints against the claimant and he failed to improve

Reasoning

The respondent produced minutes showing residents' complaints ranging from failure to clean the compound to problems with water and electricity connections. The termination letter cited laziness, collusion with utility staff to extort money, and soliciting bribes. The court found the complaints were serious, that prior warnings had been given, and that the claimant had failed to improve, so no established grounds defeated the dismissal.

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Legal principles established

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  • An employer complies with section 41 of the Employment Act, 2007 by giving a notice to show cause and according the employee a hearing before dismissal
  • A termination is valid where the employer establishes a valid reason under section 43 of the Employment Act

Court orders

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  1. 1.The claim for salary in lieu of notice and compensation for unfair termination is dismissed; the dismissal was not unfair
  2. 2.The respondent to pay the claimant Kshs.10,000.00 plus Kshs.33,208.00 ordered in the partial judgment by consent, totaling Kshs.43,208.00, payable by 15.09.2019
  3. 3.Failing payment by 15.09.2019, interest at Court rates from the date of judgment until full payment
  4. 4.Respondent to pay claimant's partial costs of the suit fixed at Kshs.10,000.00

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (employment dispute; not expressly cited by provision in the judgment)

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, "Obadiah Mutuku Nguli v Real Management Services 2002) Ltd [2019] KEELRC 956 (KLR)", Case Analysis (2019). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/956/eng@2019-07-31

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