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ELRCPartially AllowedEmployment and Labour Relations Court Cause (Statement of Claim dated 24th September 2015)· [2019] KEELRC 1278 (KLR)

Milkah Wairimu Kamau v Hekima Place Trust Inc (Cause 1720 of 2015) (Employment and Labour) [2019] KEELRC 1278 (KLR)

Employment and Labour Relations Court of Kenya
19 June 2019
1,892 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 awarded a childcare worker 8 months' salary because her employer could not prove valid reasons or follow fair disciplinary procedure before firing her.

What this practically means

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Executive summary

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The Claimant, employed on 1st April 2008 as a Resident Mum (Childcare) on a gross monthly salary later raised to KShs. 20,240, sued the Respondent seeking declarations that her dismissal was unlawful and unfair, notice pay, house allowance, overtime, gratuity, 12 months' salary for unfair termination, a certificate of service, costs and interest. She was suspended on 14th May 2015 and on 28th May 2015 summoned to a meeting at the Shade Hotel, Karen, which turned out to be a disciplinary hearing over her relationship with a colleague, at the end of which she was given the option of resigning or being terminated. The Respondent defended the claim on the basis that she resigned, was paid all her dues, and that her salary included house allowance; it also alleged she tarnished the organisation's name. The court found that the Respondent's reasons for termination remained mere allegations, as RW1 conceded there was no OB extract or proof of the obscene photo, contrary to Section 43 of the Employment Act, and that the Claimant was never notified of the disciplinary meeting nor were its minutes produced, so no due process was followed, offending Section 45(2). The termination was held unfair and unjustified. However, the house allowance claim failed because her contract consolidated housing in her salary under Section 31(2)(a); gratuity failed as she was an NSSF member under Section 35(6); and the overtime claim was not proved as her computed weekly hours did not exceed the statutory maximum. The court awarded 8 months' salary as compensation (KShs. 161,920) and one month's salary in lieu of notice (KShs. 20,240), totalling KShs. 182,160, with costs and interest at court rates from the date of judgment. Judgment was delivered by the Honourable Lady Justice Hellen Wasilwa on 19th June 2019.

Key legal issues

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01

Validity of the reason for termination

Holding

The Respondent failed to prove valid reasons; its allegations remained unproven

Reasoning

The Respondent alleged that the Claimant tarnished its name by demanding a colleague's arrest, publicising her relationship and causing an obscene photo to be posted. RW1 conceded she had no OB or proof of the obscene photo. Under Section 43 of the Employment Act the employer must prove valid reasons for termination. The allegations therefore remained mere allegations and the reason was not established.

p. 3
02

Procedural fairness of the termination

Holding

The Claimant was not subjected to due process before termination

Reasoning

The meeting at the Shade Hotel was not notified to the Claimant as a disciplinary hearing and she was not told she could defend herself. The minutes of the meeting were not produced in court, so the court could not establish that a hearing took place or assess its fairness. The process therefore fell short of the fair procedure requirement in Section 45(2)(c) of the Employment Act.

p. 3
03

House allowance claim

Holding

Claim untenable because salary was consolidated with house allowance

Reasoning

The Claimant admitted in cross-examination that clause 6 of her appointment letter stated her salary included house benefits. Section 31(2)(a) of the Employment Act excludes from the housing obligation employees whose contracts consolidate a housing element into the basic wage. The claim for house allowance therefore failed.

p. 3
04

Overtime claim

Holding

Not proved; computed hours did not exceed the statutory maximum

Reasoning

The appointment letter indicated the hours of work. The court calculated that the Claimant worked 96 hours over 4 days and had 48 hours off, leaving 48 hours worked weekly, equal to the maximum of 8 hours by 6 days. Since no excess hours were worked, no overtime was payable and the claim was not proved.

p. 4
05

Gratuity claim

Holding

Not payable as the Claimant was an NSSF member

Reasoning

The Claimant's payslip evidenced NSSF membership. Section 35(6) of the Employment Act provides that gratuity is not payable to NSSF members, whose entitlements are covered by statutory contributions. The gratuity claim for the 7 years worked therefore failed.

p. 3

Legal principles established

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  • An employer bears the burden of proving valid reasons for termination; unproven allegations cannot justify dismissal
  • A termination is unfair under Section 45(2) of the Employment Act where the employer fails to prove a valid and fair reason and a fair procedure
  • A contractual provision consolidating house allowance into basic salary ousts a claim for house allowance
  • Gratuity is not payable to an employee who is a member of the NSSF

Court orders

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  1. 1.The Respondent to pay the Claimant 8 months' salary as compensation for unfair termination (KShs. 161,920)
  2. 2.The Respondent to pay the Claimant 1 month's salary in lieu of notice (KShs. 20,240), totalling KShs. 182,160
  3. 3.The Respondent to pay costs of the suit plus interest at court rates from the date of judgment

Authorities

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Legislation

  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 31(2)(a)
  • Employment Act, 2007Section 35(6)

Cases cited (4)

  • David Gichana Omuya vs. Mombasa Maize Millers Limited
    [2015] eKLR
  • Coca Cola East & Central Africa Limited vs. Maria Kgai Ligaga
    [2015] eKLR
  • David Maina Ndirangu vs. Tusker Mattresses Limited
    [2016] eKLR
  • Christina Sigowa Wadulo vs. Solimpexs Africa Limited
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act 2007; Statement of Claim filed 24th September 2015)

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, "Milkah Wairimu Kamau v Hekima Place Trust Inc (Cause 1720 of 2015)  (Employment and Labour) [2019] KEELRC 1278 (KLR)", Case Analysis (2019). Employment and Labour Relations Court Cause (Statement of Claim dated 24th September 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1278/eng@2019-06-19

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