Joseph Kimani Kigotho v Diani Flowers & Landscaping Ltd [2019] KEELRC 1865 (KLR)
The bottom line
#A Kenyan court ruled an employer's dismissal unfair because it never clearly told the employee he faced termination, but denied extra compensation because the employee acted dishonestly.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of summary dismissal
The summary dismissal failed the procedural fairness test under section 41 of the Employment Act because the Respondent did not unambiguously inform the Claimant that termination was under consideration
The letter of 15 March 2013 called for explanations to specified allegations but did not indicate the explanations were part of a disciplinary process that could end in dismissal; they could have been routine audit or investigative. Although the Claimant may have known the allegations, the process did not meet the mandatory threshold of section 41(1) and (2), which requires hearing and considering representations before summary dismissal.
Substantive fairness (sections 43 and 45)
Not necessary to determine, but the unrebuted evidence showed the Claimant incorporated a company to compete with the Respondent for the stadium tender, acting in conflict of interest and dishonestly
Because the dismissal failed the mandatory procedural fairness test, the Court did not examine substantive fairness under sections 43 and 45. However, it noted that evidence of the Claimant incorporating a company with a name similar to a Respondent Director's to compete in the tender was unrebutted, informing the refusal of compensation.
Reimbursement/debt claim
Reimbursement allowed at US $ 14,090 as per the Respondent's own reconciliation admitted in cross-examination
The Respondent's Managing Director admitted under cross-examination that an internal reconciliation by the Accountant showed the Claimant was owed US $ 14,090. The Respondent's attempt to disown the reconciliation on the basis of a further audit failed because the further reconciliation was not filed within the window for filing and exchange of documents.
Salary arrears
February 2013 salary (Kshs 72,600/-) and salary up to 15 March 2013 (Kshs 36,300/-) awarded as the Respondent produced no records of payment
The Claimant was entitled as of right to salary up to the date of dismissal. No records were produced showing the February 2013 salary was paid, establishing breach of contract, and salary up to 15 March 2013 was computed and allowed.
Pay in lieu of notice
One month's salary in lieu of notice awarded under section 36 as read with section 44(1) of the Employment Act
The Claimant had no formal contract at separation but was paid by the month, so pay in lieu of notice equivalent to one month's salary was allowed under section 36 read with section 44(1) of the Employment Act, 2007.
Adjournment request at resumed hearing
Declined because the Respondent knew of its unpreparedness when fixing the hearing date and it was not its first adjournment application
When the hearing date was fixed on 16 November 2018 the Respondent's advocate was aware the counsel handling the brief had left the firm. It was also not the Respondent's first application for adjournment, so the request was declined, with reasons to be given in the judgment.
Legal principles established
#- Section 41(1) and (2) of the Employment Act mandatorily requires an employer to hear and consider an employee's representations before summary dismissal, and a letter merely calling for explanations without indicating a disciplinary process does not meet that threshold
- Section 28(4) of the Employment Act limits accrued leave that can be carried forward to 18 months
- An employee who secretly incorporates a company to compete with his employer in tendering is in conflict of interest and acting dishonestly
Court orders
#- 1.Declaration that the dismissal of the Claimant was procedurally unfair and that the Respondent was in breach of contract
- 2.Award of pay in lieu of notice of Kshs 72,600/-
- 3.Award of salary for February 2013 of Kshs 72,600/-
- 4.Award of salary up to 15 March 2013 of Kshs 36,300/-
- 5.Award of reimbursement/debt of US $ 14,090
- 6.Respondent to issue Certificate of Service within 15 days
- 7.Each party to bear own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over unfair termination of employment and breach of contract claims (Employment Act, 2007)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Joseph Kimani Kigotho v Diani Flowers & Landscaping Ltd [2019] KEELRC 1865 (KLR)", Case Analysis (2019). Cause No 170 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1865/eng@2019-03-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.