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Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in judgment· [2019] KEELRC 1384 (KLR)

Patrick Kiplangat Kirui v Roadtainers [Msa] Limited [2019] KEELRC 1384 (KLR)

Employment and Labour Relations Court
13 June 2019
1,529 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer who suspends an employee indefinitely by word of mouth risks the court treating that suspension as unfair termination — and paying heavily for it.

What this practically means

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Executive summary

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The Claimant, employed as an Assistant Manager by the Respondent from 27th April 2015 at a monthly salary of Kshs. 75,000, sued after 30 tons of a client's sugar worth Kshs. 3 million was stolen while being transported by the Respondent's truck from the Port of Mombasa. A Security Officer and Driver were arrested and arraigned. The Respondent suspended the Claimant verbally and indefinitely pending investigations; he was never recalled and never received a letter of termination. He claimed notice pay, salary for days worked, pro-rata leave, overtime, compensation for unfair termination, a certificate of service, costs and interest. The Respondent maintained it did not terminate his services, only suspended him, and that the claim filed less than a month later was premature. The Court held that the verbal, indefinite suspension without a reporting date or a stated investigation timeline meant the Claimant could not be faulted for treating his contract as terminated, and concluded termination was at the Respondent's instigation. No valid reason was shown; there was no disciplinary hearing and no workplace charges. Termination was declared unfair under Sections 41, 43 and 45 of the Employment Act. The Court awarded one month's notice (Kshs. 75,000), seven months' compensation (Kshs. 525,000), 14 days' pro-rata leave (Kshs. 40,384) and 8 days' salary (Kshs. 23,076), totalling Kshs. 663,640. The overtime claim was treated as withdrawn on the Claimant's Closing Submissions. A Certificate of Service was ordered to issue, with costs to the Claimant and interest at 14% per annum from the date of judgment until payment in full. Judgment was delivered at Mombasa on 13th June 2019 by James Rika, Judge.

Key legal issues

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01

Whether the Claim was premature given the Respondent's assertion of suspension pending investigations

Holding

The Claim was not premature; the indefinite verbal suspension without a reporting date justified the Claimant treating his contract as terminated

Reasoning

The suspension was verbal and indefinite. The Claimant was not given a date to report back or told when investigations would conclude. The Respondent could not justify a claim of prematurity without a written suspension period, and it never recalled the Claimant even after suit was filed. The Court therefore concluded the termination was at the Respondent's instigation.

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02

Whether termination was fair

Holding

Termination was unfair both on procedure and substance

Reasoning

No valid reason was shown to justify termination; other employees were arrested and arraigned but the Claimant was not arrested immediately, and his arrest was instigated a year later. No disciplinary hearing was held, no workplace charges were placed before the Claimant, and he was not heard. Termination offended Sections 41, 43 and 45 of the Employment Act.

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Remedies payable

Holding

Notice pay, 7 months' compensation, pro-rata leave, 8 days' salary, certificate of service, costs and interest granted

Reasoning

The Claimant had worked 2 years and 4 months on an indefinite contract, did not contribute to the loss, and was paid nothing after suspension. Termination was faulty on procedure and substance, justifying 7 months' salary compensation. Pro-rata leave of 14 days and 8 days' salary (on a 26-day working month) were granted; overtime was withdrawn.

p. 3

Legal principles established

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  • Where an employee is suspended verbally and indefinitely without a fixed period or reporting date, the employee cannot be faulted for treating the contract as terminated and filing suit soon after
  • Termination without a valid reason and without a disciplinary hearing is unfair under Sections 41, 43 and 45 of the Employment Act

Court orders

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  1. 1.It is declared termination was instigated by the Respondent and was unfair
  2. 2.The Respondent shall pay 1 month salary in lieu of notice at Kshs. 75,000
  3. 3.The Respondent shall pay equivalent of 7 months' salary in compensation for unfair termination at Kshs. 525,000
  4. 4.The Respondent shall pay pro-rata leave at Kshs. 40,384
  5. 5.The Respondent shall pay salary for 8 days at Kshs. 23,076 (total Kshs. 663,640)
  6. 6.Certificate of Service to issue
  7. 7.Costs to the Claimant
  8. 8.Interest allowed at 14% per annum from the date of Judgment till payment is made in full

Authorities

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Legislation

  • Employment ActSections 41, 43 and 45
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Sections 41, 43 and 45 invoked)

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, "Patrick Kiplangat Kirui v Roadtainers [Msa] Limited [2019] KEELRC 1384 (KLR)", Case Analysis (2019). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1384/eng@2019-06-13

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