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ELRCPartially AllowedEmployment and Labour Relations Court Claim (memorandum of claim filed 30.10.2017)· [2019] KEELRC 2093 (KLR)

Lu Yini v Avic Intl. Beijing (E.A) Co.Ltd & another [2019] KEELRC 2093 (KLR)

Employment and Labour Relations Court of Kenya
15 March 2019
2,681 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that firing a worker for pregnancy is unlawful and awarded her over USD 18,750 plus Kshs. 375,000 in damages.

What this practically means

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Executive summary

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The claimant, a Chinese national married to a Kenyan citizen, was employed by the 1st respondent as Business Manager from 16.11.2015 on three months' probation. She sued for declaratory relief, unpaid salaries for June and July 2017, pay in lieu of notice, twelve months' compensation for unfair termination, service pay, unremitted NSSF and NHIF contributions, a maternity package reimbursement, general damages, a certificate of service, interest and costs. The respondents denied the claims and counterclaimed for the return of a laptop or its market value. The court held that under sections 9(2) and 10(7) of the Employment Act the burden of proving contract terms lay with the employer, and found the claimant's net monthly pay at termination to be USD 1,500.00 plus Kshs.30,000.00. On the evidence, including the respondents' failure to call the 2nd respondent, the court found the claimant was verbally dismissed on 24.07.2017 on account of her pregnancy, without notice or hearing under section 41, contrary to section 46(a) and section 5(3) of the Employment Act and Articles 27(4), 27(5) and 41 of the Constitution. Judgment was entered for the claimant against the 1st respondent: a declaration of unlawful and unfair termination, USD 18,750.00 plus Kshs.375,000.00 payable by 01.05.2019 with interest, and a certificate of service. Claims for NSSF/NHIF arrears, the Kshs.50,000.00 maternity package and separate general damages failed for want of proof, and the counterclaim was dismissed. The respondents were ordered to pay the claimant's costs.

Key legal issues

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01

Claimant's net monthly remuneration after probation

Holding

As at termination the claimant's net monthly remuneration was USD 1,500.00 plus Kshs.30,000.00

Reasoning

Section 9(2) of the Employment Act obliged the employer to set out the contract terms in writing; section 10(7) placed the burden of proving or disproving the term on the respondents, who failed to discharge it. The 2nd respondent did not testify about the salary and RW2 offered no useful resolution, so on a balance of probability the claimed increment was proved.

p. 2
02

Whether termination was unfair or unlawful

Holding

The termination was unfair and unlawful, having been effected on account of pregnancy, contrary to sections 46(a) and 5(3) of the Employment Act and Articles 27(4), 27(5) and 41 of the Constitution

Reasoning

The 2nd respondent did not testify, so the claimant's unchallenged account stood: she was verbally dismissed on 24.07.2017 after refusing to disclose her pregnancy. No notice and hearing under section 41 was invoked. Pregnancy is not a fair reason for dismissal under section 46(a); the discrimination violated section 5(3) of the Act and Articles 27 and 41 of the Constitution.

p. 3
03

Compensation under section 49

Holding

Ten months' salary awarded in compensation, being Kshs.300,000.00 plus USD 15,000.00

Reasoning

The court considered the claimant's desire to continue in employment, her service of slightly over a year, and the constitutional violations; the appraisal incident of 21.04.2017 was regarded as, at most, a remote contributing factor.

p. 3
04

Counterclaim for the laptop

Holding

Counterclaim failed

Reasoning

The claimant did not take the laptop, and its value was neither pleaded nor established, so the alternative prayer for payment of value was not properly pleaded.

p. 3

Legal principles established

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  • A female employee's pregnancy or any reason connected with her pregnancy does not constitute a fair reason for dismissal
  • Under section 10(7) of the Employment Act the burden of proving a term of the contract of service rests with the employer
  • Termination for misconduct or poor performance requires the procedure of notice and hearing under section 41 of the Employment Act

Court orders

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  1. 1.Declaration that the termination of the claimant's contract of service on account of pregnancy and reasons related to the pregnancy was unlawful and unfair
  2. 2.The respondent to pay the claimant USD 18,750.00 and Kshs.375,000.00 by 01.05.2019 failing interest at court rates from the date of judgment till full payment
  3. 3.Dismissal of the counterclaim with costs in favour of the claimant
  4. 4.The respondent to pay the claimant's costs of the suit
  5. 5.Consent order that the claimant was at liberty to collect her personal belongings from the 1st respondent's premises, and award of a certificate of service

Authorities

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Legislation

  • Employment Act, 2007section 9(2)
  • Employment Act, 2007section 10(7)
  • Employment Act, 2007section 5 and section 5(3)
  • Employment Act, 2007section 35
  • Employment Act, 2007section 41
  • Employment Act, 2007section 46(a)
  • Employment Act, 2007section 49
  • Companies Act, Cap. 486 Laws of Kenya (repealed)
  • Constitution of Kenya, 2010Article 27(4) and (5)
  • Constitution of Kenya, 2010Article 41
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes; Employment Act, 2007 and Articles 27 and 41 of the Constitution, 2010

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, "Lu Yini v Avic Intl. Beijing (E.A) Co.Ltd & another [2019] KEELRC 2093 (KLR)", Case Analysis (2019). Employment and Labour Relations Court Claim (memorandum of claim filed 30.10.2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2093/eng@2019-03-15

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