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ELRCPartially AllowedCause No 1406 of 2016· [2019] KEELRC 2287 (KLR)

Agnes Ongadi v Kenya Electricity Transmission Company Limited [2019] KEELRC 2287 (KLR)

Employment and Labour Relations Court
15 February 2019
3,011 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that even when an employee's misconduct justifies dismissal, firing them outright can be unlawful if the punishment is disproportionately harsh.

What this practically means

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Executive summary

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The Claimant, Chief Manager, Human Capital & Administration at the Kenya Electricity Transmission Company Ltd, was issued a show cause letter in April 2016 for gross misconduct - unilaterally varying a Board decision by issuing a confirmation letter to Charles Odhiambo Oguoko converting him to permanent and pensionable terms without Board approval. She was suspended, appeared before the Staff & Remuneration Committee of the Board on 13 July 2016, and was summarily dismissed on 13 February 2018 after the Court of Appeal allowed the Respondent's appeal against interim orders in her favour. The Court framed issues on procedural fairness (statutory and contractual) and substantive fairness. It found the Respondent complied with sections 35 and 41 of the Employment Act and, despite non-strict compliance with its own HR Manual on preliminary investigations, was in substantial compliance with procedural fairness since the Claimant suffered no prejudice. On substantive fairness, the misconduct was a valid reason, but fairness demands that the penalty fit the offence: the Claimant did not personally choose Oguoko, the confirmation was revoked and overpayments recovered, she had a clean record, and the Managing Director knew of the relevant resignation. Summary dismissal was 'a reaction to a mosquito bite with a hammer' and unfair. Reinstatement was refused for want of material on practicality, and reliefs tied to suspension were overtaken by events. The Court awarded compensation equivalent to 7 months gross salary under section 49(4), considering her about 9 years of service, and gave the Claimant costs. Judgment delivered in Nairobi on 15 February 2019 by Radido Stephen, Judge.

Key legal issues

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01

Procedural fairness under sections 35 and 41 of the Employment Act

Holding

The Respondent complied with the essentials of statutory procedural fairness

Reasoning

The Claimant received a show cause letter outlining the allegations, made written representations, was invited before the Staff & Remuneration Committee of the Board and made both written and oral representations ahead of and at the hearing. Alleged oral assurances by the Managing Director could not override the Board's suspension letter, as the Board had ultimate disciplinary authority. The Court was satisfied statutory procedural fairness was met.

p. 3
02

Contractual procedural fairness under the HR Policies & Procedures Manual

Holding

The Respondent did not strictly comply with its own procedures but was in substantial compliance

Reasoning

The Manual required preliminary investigations and a summary of evidence to be furnished to the employee. The Managing Director did not expressly admit conducting them or that the Board sanctioned the show cause. However, the infractions were minor and not decisive: the Claimant knew the allegations, was given the contractual 7 days to respond, and made written and oral representations without demonstrating any prejudice or injustice.

p. 3
03

Substantive fairness - valid and fair reasons under sections 43 and 45 of the Employment Act

Holding

The reason for dismissal (gross misconduct in issuing an unauthorised confirmation letter) was valid, but summary dismissal was not fair as a sanction

Reasoning

Issuing a confirmation letter varying an employee's terms to permanent and pensionable without Board approval was a valid reason. However, fairness requires proportionality: the Claimant did not personally select Oguoko (he was recommended by line managers), the confirmation was revoked and overpayments recovered, she had no disciplinary record and had performed well, and the Managing Director knew of Cheboror's resignation. Summary dismissal was an excessively heavy sanction.

p. 5
04

Appropriate remedies

Holding

Reinstatement not granted; compensation of 7 months gross salary awarded under section 49(4)

Reasoning

Reinstatement is a primary remedy but the parties did not adduce material on its practicality. Compensation being discretionary, the Court considered the section 49(4) factors, notably the Claimant's about 9 years of service, and found the equivalent of 7 months gross salary fair.

p. 5

Legal principles established

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  • Fairness goes beyond validity of the reason for dismissal and examines the nexus between the misconduct and the sanction; the penalty should fit the offence
  • A court should not lightly interfere with an employer's chosen sanction unless it was unfair or unreasonable in the circumstances
  • Minor infractions of an employer's own disciplinary procedures do not render a dismissal unfair where the employee knew the allegations and was heard

Court orders

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  1. 1.Finding and holding that though the summary dismissal of the Claimant was valid it was not fair
  2. 2.Award of compensation equivalent to 7 months gross salary
  3. 3.Claimant to have costs of the Cause

Authorities

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Legislation

  • Employment Act, 2007section 35(1)
  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 44(3)
  • Employment Act, 2007section 45
  • Employment Act, 2007section 49(4)

Cases cited (2)

  • Judicial Service Commission v Gladys Boss Shollei & Ar
    (2014) eKLR
  • Nampak Corrugated Wadeville v Khosa
    (1998) ZALAC 24
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007 and the cause filed on 18 July 2016 alleging unfair disciplinary process, unfair labour practices and violation of the bill of rights)

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, "Agnes Ongadi v Kenya Electricity Transmission Company Limited [2019] KEELRC 2287 (KLR)", Case Analysis (2019). Cause No 1406 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2287/eng@2019-02-15

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