Eunice Wuganga Mwanyalo v Sphinx Pharmaceuticals Limited [2019] KEELRC 2011 (KLR)
The bottom line
#A Kenyan employer with a valid reason to fire an employee still lost damages because it skipped fair procedure before dismissal.
What this practically means
#Executive summary
#Key legal issues
#Whether the dismissal was substantively lawful
The Respondent had a valid reason to dismiss the Claimant for missing a mandatory performance-improvement training session
Section 43 requires the employer to demonstrate a valid reason for termination, judged objectively by what a reasonable employer would do. The Claimant admitted performance concerns and failure to meet targets. The training was part of a performance improvement programme; missing it was grave, and there was no evidence of prior official communication of her inability to travel. Substantive validity was therefore established despite her explanation that she lacked transport.
Whether the dismissal was procedurally fair
The dismissal was procedurally unfair; the Respondent failed to observe due procedure, admitted by its Human Resource Manager
Even where a valid reason exists, Section 41-type due procedure must be observed. The Respondent's own Human Resource Manager, Isabella Osoro, conceded in testimony that due procedure was not followed. The absence of a fair process rendered the summary dismissal procedurally unfair, entitling the Claimant to compensation notwithstanding the substantive validity of the reason.
Entitlement to accrued dues and remedies
Accrued dues (notice pay, prorata leave, days worked) are payable even after summary dismissal; compensation limited to 3 months' salary
Following Court of Appeal authority, accrued dues are payable even on summary dismissal, and the leave and June salary claims were admitted. On compensation, the court exercised discretion under Section 49, weighing length of service against the finding of a valid reason, and awarded three months' salary instead of the twelve months claimed.
Legal principles established
#- The burden under Section 43 of the Employment Act is on the employer to show a reason that would cause a reasonable employer to terminate employment
- The reason for termination is that which the employer genuinely believes to exist at the time of termination; the court asks only whether the employer acted reasonably
- Even in cases of summary dismissal, an employee is entitled to all accrued dues as at the date of dismissal
Court orders
#- 1.Judgment entered in favour of the Claimant for Kshs. 193,142 comprising 3 months' salary in compensation (Kshs. 129,000), 1 month's salary in lieu of notice (Kshs. 43,000), 6 days leave balance for 2016 (Kshs. 8,600) and prorata leave for 2017 (Kshs. 12,542)
- 2.The award to attract interest at court rates from the date of judgment until payment in full
- 3.The Claimant to be issued with a certificate of service
- 4.The Claimant to have costs of the case
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Eunice Wuganga Mwanyalo v Sphinx Pharmaceuticals Limited [2019] KEELRC 2011 (KLR)", Case Analysis (2019). Cause No 662 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2011/eng@2019-03-07
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.