Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No 40 of 2018· [2019] KEELRC 2302 (KLR)

Mercy Gakii Nabea v Malindi Management Strategy Limited [2019] KEELRC 2302 (KLR)

Employment and Labour Relations Court of Kenya
13 February 2019
2,708 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

#

A Kenyan court ruled that terminating an employee on maternity leave through flawed redundancy cost the employer over Kshs. 669,000 in damages.

What this practically means

#

Executive summary

#
The Claimant, employed as a security guard, was terminated on account of redundancy by letter dated 16th January 2018 while on maternity leave, having been granted maternity leave on 12th December 2017. She claimed notice pay, unpaid maternity leave, severance pay, underpayment, compensation for unfair termination and damages for loss of employment. The Respondent admitted the termination but contended it complied with the Employment Act, that terminal dues were offered and that the Claimant was paid maternity leave salary and given two months' notice. The court framed two issues: the lawfulness and fairness of the termination, and the remedies payable. It held that the Respondent failed to comply with Section 40(1) of the Employment Act: there was no prior redundancy notice, no evidence of the selection criteria, and an unproved, non-participatory performance appraisal. Requiring the Claimant to serve notice while on maternity leave had no legal basis, and the termination during pregnancy amounted to discrimination under Section 5 of the Employment Act and Article 27 of the Constitution, with the burden of disproving discrimination on the employer. The court awarded twelve months' salary in compensation, Kshs. 500,000 in damages for discrimination, and one month's salary in lieu of notice, totalling Kshs. 669,403 with interest and costs. The maternity leave, underpayment and severance claims were refused, the latter because the effective employment date was fixed at 1st June 2009 from the letter of appointment.

Key legal issues

#
01

Whether the termination on account of redundancy complied with Section 40(1) of the Employment Act

Holding

The termination was unlawful and unfair: no prior redundancy notice was issued, no selection criteria were disclosed, and the purported appraisal was not proved or participatory.

Reasoning

Apart from the termination letter, there was no evidence of prior redundancy notice. The Respondent did not lay before the Court the selection criteria, and the claimed appraisal report was never tabled nor was the Claimant a participant. An employer relying on redundancy must go through the rigours of Section 40(1), including the two distinct notices settled by the Court of Appeal.

p. 3
02

Whether the termination amounted to discrimination on account of pregnancy

Holding

Yes. The termination during maternity leave, the requirement to serve notice while on leave, and the timing during gestation amounted to pregnancy discrimination, which the Respondent failed to disprove.

Reasoning

Section 5(2) and (3) of the Employment Act and Article 27 of the Constitution prohibit discrimination on grounds of pregnancy. Under Section 5(6) the burden of disproving discrimination lies on the employer. The Respondent failed to discharge that burden, and its actions denied the Claimant the right to resume duty after maternity leave contrary to Section 29(2) and ILO Maternity Protection Convention No. 183.

p. 4
03

What remedies are due

Holding

Twelve months' salary in compensation for unfair termination, Kshs. 500,000 damages for discrimination, and one month's salary in lieu of notice were awarded; the maternity leave, underpayment and severance claims failed.

Reasoning

The compensation award took into account length of service and the Respondent's callous conduct. Discrimination damages accounted for the blatant violation of maternity rights, mitigated by the common cadre nature of the job. Severance was admitted but the effective date of employment was fixed at 1st June 2009, and the maternity leave and underpayment claims failed for admission and want of proof respectively.

p. 4

Legal principles established

#
  • In every redundancy situation there are two separate and distinct notices of not less than a month each: a general notice and an individual termination notice.
  • An employer alleging poor performance as redundancy justification must involve the employee in the appraisal and allow them reasonable time to improve.
  • Under Section 5(6) of the Employment Act, the burden of disproving an allegation of discrimination lies with the employer.
  • Maternity leave and the notice period are separate and distinct rights; an employee cannot be required to serve a redundancy notice while on maternity leave.

Court orders

#
  1. 1.Judgment entered in favour of the Claimant for 12 months' salary in compensation of Kshs. 156,372
  2. 2.Damages for discrimination of Kshs. 500,000 awarded to the Claimant
  3. 3.1 month's salary in lieu of notice of Kshs. 13,031 awarded to the Claimant
  4. 4.Total judgment of Kshs. 669,403 with interest at court rates from the date of judgment until payment in full
  5. 5.The Claimant awarded the costs of the case

Authorities

#

Legislation

  • Employment ActSection 2
  • Employment ActSection 40(1)
  • Employment ActSection 40(b)
  • Employment ActSections 5(2), 5(3) and 5(6)
  • Employment ActSection 29(2)
  • Labour Relations ActSection 2 (corresponding definition of redundancy)
  • Constitution of Kenya, 2010Article 27
  • ILO Maternity Protection Convention Number 183 [2000]
  • UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW)

Cases cited (7)

  • Jane I Khalechi v Oxford University Press E.A. Ltd
    [2013] eKLR
  • Thomas De La Rue v David Opondo Omutelelma
    [2013] eKLR
  • Kenya Airways Limited v Aviation & Allied Workers Union of Kenya & 3 others
    [2014] eKLR
  • Jane Wairimu Machira v Mugo Waweru and Associates
    [2012] eKLR
  • Kenya Science Research International Technical and Allied Workers Union (KSRITAWU) v Stanley Kinyanjui and Magnate Ventures Ltd
    Cause No. 273 of 2010
  • GMV v Bank of Africa Kenya Limited
    [2013] eKLR
  • Janine Buss v Gems Cambridge International School Limited
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the Constitution of Kenya, 2010 (Article 27), first-instance claim

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (2)

#

Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

#

Cite this brief

Caselaw, "Mercy Gakii Nabea v Malindi Management Strategy Limited [2019] KEELRC 2302 (KLR)", Case Analysis (2019). Cause No 40 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2302/eng@2019-02-13

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