Michael Karanja v Noble Confernece Centre Limited [2019] KEELRC 1944 (KLR)
The bottom line
#A Kenyan employer who dismisses a worker without a hearing must pay compensation, even after claiming the employee abandoned the job.
What this practically means
#Executive summary
#Key legal issues
#Unfair termination
The termination of the claimant's employment was both substantively and procedurally unfair; the respondent's defence that the claimant absconded failed because no disciplinary process or summary dismissal letter issued
The court found no letter of termination existed. The respondent, having recalled the claimant to work on 7th February 2014 without any disciplinary process, could not later assert self-dismissal. Under sections 41, 44 and 45 of the Employment Act the employer was bound to summon the claimant and grant a hearing before dismissal; it did not, so the omissions of the respondent caused the dismissal without reasonable cause.
Compensation under section 49
An award of 10 months' gross pay, Ksh.300,000.00, was appropriate compensation for the unfair termination
Having found the termination procedurally and substantively unfair, and noting the respondent's conduct prior to dismissal, the court exercised its discretion under section 49 of the Employment Act to award the equivalent of ten months' gross salary.
Unremitted NSSF dues
The claim for unremitted NSSF contributions was declined as such dues are payable to the statutory body, not the employee
The court held that unremitted statutory contributions are owed to the statutory body and the employee cannot claim them as a personal entitlement; the claimant may only plead service pay where statutory dues were not remitted, or report the non-remittance to NSSF and the labour officer for enforcement and penalties.
Annual leave
The claimant took 20 days of leave out of his entitlement, leaving a balance of 43 days awarded at Ksh.43,000.00
From the leave records the court identified approved leave of 6 days in January 2013, compassionate leave in April 2013 and 14 days in 2014 as the only leave taken across the employment period from May 2011 to March 2014, computing the unutilised balance as cash in lieu.
Legal principles established
#- An employer bears the duty to afford an employee a hearing before termination for misconduct under sections 41 and 44 of the Employment Act; failure to do so renders the termination unfair
- Termination without procedural fairness and a valid substantive reason constitutes unfair termination under section 45 of the Employment Act
- An employer must issue an itemised monthly payment statement under section 20 of the Employment Act; absent such a statement, the court will accept the employee's account of the wage composition
Court orders
#- 1.Compensation Ksh.300,000.00
- 2.Notice pay Ksh.30,000.00
- 3.Unpaid wages Ksh.60,000.00
- 4.House allowance Ksh.18,000.00
- 5.Due leave days Ksh.43,000.00
- 6.Costs of the suit to the claimant
- Jurisdiction invoked
- Employment and labour relations jurisdiction over the claimant's suit for unfair termination and terminal dues
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Michael Karanja v Noble Confernece Centre Limited [2019] KEELRC 1944 (KLR)", Case Analysis (2019). Cause No. 244 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1944/eng@2019-01-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.