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ELRCPartially AllowedCause No 696 of 2015· [2019] KEELRC 1877 (KLR)

Micky Musyoka v Koroga Country Club Limited [2019] KEELRC 1877 (KLR)

Employment and Labour Relations Court
27 March 2019
1,910 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan hotel legally fired a drunk manager but still paid one month's salary because it skipped the required disciplinary hearing.

What this practically means

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Executive summary

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The Claimant, employed as Manager of the Respondent Hotel in December 2014 at a monthly salary of Kshs. 30,000, claimed he was summarily dismissed on 27th May 2015 after requesting a meeting with the Directors to discuss business performance. The Respondent countered that the Claimant was found heavily intoxicated at work on 25th May 2015, behaved unruly, and deserted his post after being questioned by owner Shakil Ahmed Khan. Hearing the Claimant, two waiter witnesses, Shakil and Security Guard Ismail Mahamud, the Court found the Claimant was indeed inebriated on duty, rude to Customers and Guards, and that this gave the Respondent valid reason for summary dismissal under Section 44(4)(b) of the Employment Act. However, the Court rejected the desertion defence, finding the Directors sacked the Claimant, brought in and introduced a new Manager to staff. The termination nonetheless failed the minimum procedural fairness standards of Section 41: the Claimant was never presented with charges, asked to show cause, or heard on a disciplinary platform. On quantum, the Court held 12 months' compensation would be unreasonable for a 6-month service period, awarding one month's salary (Kshs. 30,000). Claims for notice pay, public holiday pay, severance/service pay and contractual damages were rejected; the latter because the Claimant himself committed fundamental breach. A Certificate of Service was ordered under Section 51, with each party bearing their own costs and no order on interest. Judgment delivered at Mombasa on 27th March 2019 by James Rika, Judge.

Key legal issues

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01

Whether there was valid reason for termination

Holding

Yes - the Claimant was intoxicated at work, rude to customers and guards, exposing the hotel to reputational damage, satisfying Section 44(4)(b)

Reasoning

The Court was persuaded by the evidence of Security Guard Ismail and Director Shakil Khan that the Claimant was inebriated on duty, staggered around the Hotel, and was rude to Customers. His Co-Manager was off duty, so he could not discharge his managerial role. The Respondent thereby had substantive justification for summary dismissal under Section 44(4)(b) of the Employment Act.

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02

Whether the termination procedure was fair under Section 41

Holding

No - the Claimant was not presented with charges, not asked to show cause, and not heard on any disciplinary platform

Reasoning

Although the Director made some inquiries with Security Guards and Customers, the Claimant was never presented with charges, never asked to show cause why he should not face disciplinary action, and never given an opportunity to state his case or call witnesses. The Court found the process fell short of the minimum standards of fairness prescribed by Section 41 of the Employment Act.

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Whether the Claimant deserted his post

Holding

No - the Court rejected the desertion claim and found he was sacked and replaced

Reasoning

The Respondent asserted the Claimant declined to record a statement and abandoned his post. The Court disbelieved this, noting the Directors terminated him, brought in a new Manager and introduced the new Manager to the staff. The evidence of the Claimant's witnesses that a new person was introduced as Manager corroborated this finding.

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04

Quantum of compensation for unfair termination

Holding

1 month's salary (Kshs. 30,000) instead of the 12 months sought, given 6 months' service and substantive justification

Reasoning

The Court held it illogical to award the maximum 12 months' compensation to an employee who had served only 6 months. Weighing the short service, the Claimant's own role in the events leading to termination, and the substantive justification, it awarded the equivalent of one month's salary as fair compensation for the procedural defect.

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Legal principles established

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  • Summary dismissal requires valid reason under Section 44(4)(b), but termination must still follow the minimum fair procedure under Section 41 of the Employment Act
  • An employer who replaces an employee with a new manager and introduces the new manager to staff cannot later claim the employee deserted
  • Service pay under Section 35(5) accrues only on complete years of service, not pro-rata
  • Compensation under Section 45(3) is discretionary and calibrated to length of service and the employee's role in the termination

Court orders

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  1. 1.Declaration that termination was based on valid reason but flawed procedure
  2. 2.The Respondent to pay the Claimant the equivalent of 1 month salary, Kshs. 30,000, in compensation for unfair termination
  3. 3.Certificate of Service to issue under Section 51 of the Employment Act
  4. 4.No order on costs - each party to bear their own costs
  5. 5.No order on interest

Authorities

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Legislation

  • Employment Act 2007Section 44(4)(b)
  • Employment Act 2007Section 41
  • Employment Act 2007Section 45(3)
  • Employment Act 2007Section 42
  • Employment Act 2007Section 35(5)
  • Employment Act 2007Section 51
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court under the Employment Act 2007

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, "Micky Musyoka v Koroga Country Club Limited [2019] KEELRC 1877 (KLR)", Case Analysis (2019). Cause No 696 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1877/eng@2019-03-27

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