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ELRCPartially AllowedNot stated in judgment· [2019] KEELRC 1037 (KLR)

Racheal Waithera Mwaniki v Central Memorial Hospital Limited [2019] KEELRC 1037 (KLR)

Employment and Labour Relations Court
22 July 2019
2,712 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 receptionist's dismissal unfair because her employer skipped key hearing steps, but awarded only two months' salary.

What this practically means

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Executive summary

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The Claimant, a receptionist employed by the Respondent hospital from July 2016 on a monthly salary of Kshs. 15,248/-, sued for unfair and unlawful termination. She was accused of soliciting Kshs. 1,000/- from a patient, Eunice Njoki, within the hospital premises. She maintained the sum was legitimate laboratory fees entered into the system with a computer-generated receipt issued. After a suspension without pay for 7 days and an appearance before a disciplinary panel on 1st November 2017, she was handed a summary dismissal letter dated 4th November 2017. She sought a declaration of unfair termination, declarations that Articles 41, 47 and 50 of the Constitution were infringed, twelve months' salary compensation, withheld October 2017 salary, exemplary damages, a certificate of service, a fine of Kshs. 100,000/- under Section 51(3) of the Employment Act, interest and costs. The Respondent maintained the dismissal was for gross misconduct - collusion to defraud an insured patient - and that due process was followed. The court framed a single issue: whether the Claimant was wrongfully, unlawfully and unfairly terminated. Relying on Sections 41 and 45 of the Employment Act, it found the disciplinary hearing fell short of Section 41's requirements on notice, explanation and representation, rendering the dismissal unlawful and unfair. Judgment was entered for the Claimant for two months' salary as compensation (Kshs. 30,496/-) and costs capped at Kshs. 25,000/-. The other heads of relief sought were not granted in the final orders.

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 unfair; the hearing did not satisfy Section 41's requirements as to notice, explanation, and representation

Reasoning

The court found that although a hearing was held, it fell short of Section 41 requirements: no notice of intention to terminate, no explanation in the presence of a colleague, and no hearing in the presence of the employee's chosen representative. The Claimant was also allegedly invited to the 1st November 2017 hearing verbally rather than in writing. These omissions rendered the dismissal unlawful and unfair.

p. 3
02

Whether the Respondent proved valid reasons for the termination under Sections 43 and 45

Holding

The court did not expressly make a definitive finding that the reasons were invalid, but found the dismissal unlawful and unfair, focusing on procedure

Reasoning

The court cited Section 45(2) defining unfair termination and the requirement that the employer prove a valid reason. The Claimant argued no evidence showed she pocketed the Kshs. 1,000/- and no report was made to police. The court's reasoning concentrated on procedural failures under Section 41 rather than an explicit substantive justification finding, but concluded the dismissal was unlawful and unfair.

p. 2
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What compensation is appropriate where dismissal is unfair but the employer attempted some process

Holding

Two months' salary as compensation (Kshs. 30,496/-) plus costs capped at Kshs. 25,000/-

Reasoning

The court exercised its discretion to award reduced compensation of two months' salary rather than the twelve months sought, because the Respondent had attempted to afford the Claimant some measure of process before dismissal, even though that process fell short of statutory requirements.

p. 3

Legal principles established

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  • A termination is unfair where the employer fails to prove a valid and fair reason and that fair procedure was followed; prior to dismissal for misconduct the employer must give the Section 41 safeguards
  • A hearing that omits notice of intention to terminate, explanation in the presence of a colleague, and hearing in the presence of a chosen representative falls short of Section 41 and renders dismissal unlawful and unfair

Court orders

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  1. 1.Two months salary as compensation – Kshs. 30,496/-
  2. 2.Costs of the suit capped at Kshs. 25,000/-
  3. 3.It is so ordered

Authorities

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Legislation

  • Constitution of KenyaArticles 35, 41, 47, 50
  • Employment ActSections 12, 41(1), 41(2), 42(1), 43, 44(3), 44(4), 45(2), 51(3), 90
  • Fair Administrative Actions ActSection 4(3)(g)

Cases cited (7)

  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Rebecca Ann Maina & 2 Others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
  • Mary Chemweno Kiptui v Kenya Pipeline Company Ltd
    [2014] eKLR
  • James Ondima Kabesa v Trojan International Limited
    [2017] eKLR
  • Vicky Kemunto Ocharo v Independent Policing Oversight Authority
    [2018] eKLR
  • Samuel Muchiri Gikonyo v Henkel Chemicals (EA) Limited
    [2014] eKLR
  • Kenya Petroleum Oil Workers Union v Kenya Petroleum Refineries Ltd
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under Section 12 of the Employment Act (invoked by Claimant for exemplary damages/malicious dismissal); Articles 41, 47 and 50 of the Constitution pleaded

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, "Racheal Waithera Mwaniki v Central Memorial Hospital Limited [2019] KEELRC 1037 (KLR)", Case Analysis (2019). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1037/eng@2019-07-22

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