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ELRCPartially AllowedNot stated in judgment (memorandum of claim dated 8th August 2014, filed 13th November 2014)· [2019] KEELRC 1390 (KLR)

Pius Kimeu Kiilu v Metal Crowns Limited [2019] KEELRC 1390 (KLR)

Employment and Labour Relations Court
14 June 2019
2,367 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan employer lost an unfair dismissal case because it fired a worker without an oral hearing and could not prove the workplace policy it relied on.

What this practically means

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Executive summary

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The claimant, employed as a gardener, sued for unfair dismissal after his employment was terminated on 1st August 2013 for bringing meat food (chicken and chips) into the factory, alleged to be a meat-free zone under company policy. He sought declarations of constructive/unlawful termination, twelve months' salary in lieu of notice, twelve months' compensation, leave pay, settlement of a bank loan the respondent had guaranteed, revocation of a director's work permit and costs. The matter was disposed of by written submissions under Rule 21 of the ELRC (Procedure) Rules, 2016. The respondent asserted a valid reason under company policy, compliance with procedure through a same-day notice to show cause and written response, reliance on the Court of Appeal decision in Kenya Revenue Authority v Menginya Salim Murgani to argue an oral hearing was unnecessary, and payment of all terminal dues. The court found the main facts undisputed but held the termination unfair both for want of fair procedure and lack of proof of a valid reason. It distinguished Murgani as a pre-Employment Act case, holding that section 41(2) now mandates an oral hearing before a fellow employee or union representative. No policy document evidencing the meat-free zone was produced, and without a hearing the grounds could not be proved. The court awarded the maximum compensation of twelve months' salary on gross pay of Kshs.17,950, totalling Kshs.215,400, dismissed all other prayers, awarded the claimant costs, ordered interest from date of judgment, and subjected the decretal sum to PAYE.

Key legal issues

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01

Fair procedure before termination on grounds of misconduct

Holding

Termination was unfair for want of fair procedure as the claimant was not given an oral hearing as required by section 41 of the Employment Act

Reasoning

The respondent admitted the claimant was not given a hearing and relied on Murgani, a pre-Employment Act case where fairness was satisfied by an exchange of letters. The court held that section 41(2) now mandates an oral hearing in the presence of a union official or fellow employee of the employee's choice, so Murgani does not apply to post-2008 dismissals. Same-day show cause and termination without such a hearing breached fair procedure.

p. 3
02

Valid reason for termination

Holding

No valid reason for termination was proved; the alleged meat-free-zone policy was never produced and without a hearing the grounds could not be tested

Reasoning

The respondent asserted a company policy that the factory was a meat free zone, relying only on a general discipline clause in the appointment letter. No policy document was produced in evidence. The claimant's written explanation denying knowledge of the food was treated as a denial, and without a hearing there was no opportunity to prove the grounds for termination, so both reason and procedure failed.

p. 4
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Burden of proof in unfair termination claims

Holding

The respondent failed to discharge its burden of justifying the grounds of termination

Reasoning

The respondent invoked section 47(5) of the Employment Act, which places the burden on the employee to prove unfair termination while the employer must justify the grounds. The respondent relied on a termination letter and an unproduced policy; the court found the grounds unproven and the procedure unfair, warranting maximum compensation given the claimant's clean record and over 12 years of service.

p. 2

Legal principles established

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  • Section 41(2) of the Employment Act, 2007 requires an oral hearing in the presence of a union official or another employee of the employee's choice before termination on grounds of misconduct
  • The Kenya Revenue Authority v Menginya Salim Murgani decision on fairness of a hearing by exchange of letters does not apply to dismissals after the Employment Act, 2007 came into force

Court orders

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  1. 1.Award of maximum compensation of 12 months' salary based on gross pay of Kshs.17,950, totalling Kshs.215,400
  2. 2.All other prayers dismissed
  3. 3.Respondent to pay claimant's costs
  4. 4.Decretal sum to attract interest from date of judgment until payment in full
  5. 5.Decretal sum subject to deduction of Pay As You Earn (PAYE)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (claim for unfair termination)

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, "Pius Kimeu Kiilu v Metal Crowns Limited [2019] KEELRC 1390 (KLR)", Case Analysis (2019). Not stated in judgment (memorandum of claim dated 8th August 2014, filed 13th November 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1390/eng@2019-06-14

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