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ELRCPartially AllowedCause No 1317 of 2010· [2019] KEELRC 2388 (KLR)

Grace Mwenda Munjuri v Trustees of the Agricultural Society of Kenya [2019] KEELRC 2388 (KLR)

Industrial Court (Employment and Labour Relations Court)
4 February 2019
2,762 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 suspending an employee without following the employer's own rules, then backdating her dismissal, was unlawful and ordered full payment.

What this practically means

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Executive summary

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The Claimant, a communications consultant employed by the Agricultural Society of Kenya from 2005, was sent on compulsory leave in April 2007, suspended on 8 May 2007, and terminated by a letter dated 29 October 2007 backdated to the date of her suspension. She claimed special damages of Kshs.1,165,996 plus aggravated and exemplary damages, costs and interest, alleging unlawful suspension, backdated termination and withheld salary. The Respondent denied the allegations, asserting misconduct under its Code of Regulations. The court framed two issues: whether the suspension and termination were unlawful, and whether the reliefs were payable. It found the allegations (unauthorised press conference, abusive language, conflict of interest and unauthorised commitments) unproved, noting that the Respondent's own Human Resource Manager conceded there was no proof and that the Respondent had no payment records. Both parties agreed the suspension contravened Clause 6.1(b)(ii) of the Code of Regulations, which reserves suspension for employees convicted of criminal offences; interdiction was the correct course. The court held the suspension and termination wrongful and unjustified, and that backdating was unjustifiable. The Claimant was awarded salary for May to October 2007, provident fund contributions, medical expenses, transport, leave travelling allowance and 26 days' untaken leave, totalling Kshs.1,415,480. The underpayment and aggravated/exemplary damages claims were declined for want of proof. The Respondent was ordered to pay costs, with interest from the date of filing suit.

Key legal issues

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01

Whether the Claimant's suspension and termination were unlawful

Holding

Yes - both wrongful and unjustified

Reasoning

The termination letter alleged an unauthorised press conference, abusive language, conflict of interest and unauthorised commitment of Society funds, but the Respondent's own HR manager (RW1) conceded in cross-examination there was no proof of the abusive language or press conference, no records of payment during suspension, and that the People Daily article was not authored by the Claimant. The suspension contravened Clause 6.1(b)(ii) of the Code of Regulations since the Claimant was never charged or convicted of a criminal offence; interdiction, not suspension, was the appropriate measure. Backdating the termination was unjustifiable.

p. 4
02

Whether the Claimant is entitled to the reliefs sought

Holding

Partially - salary for suspension period, provident fund, medical expenses, transport, leave travelling allowance and untaken leave allowed; underpayments and aggravated/exemplary damages declined

Reasoning

Because the suspension was unlawful, the Claimant remained deemed in employment and was entitled to salary and provident fund contributions from May to October 2007. Medical expenses were payable under Clause 12 of the appointment letter and Section M of the Code of Regulations; transport and leave travelling allowance were claimable per the contract. Leave travelling allowance for April and the underpayment claims were not proved. No evidence of malice supported aggravated or exemplary damages.

p. 4

Legal principles established

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  • An employer must comply with the procedure set out in its own Code of Regulations; suspension is only available where the employee has been convicted of a criminal offence, otherwise interdiction applies.
  • It is unjustifiable to backdate a termination letter; an employee terminated while on suspension remains entitled to salary for the intervening period.
  • Where there is no evidence supporting the allegations against an employee, there is no valid reason for termination.

Court orders

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  1. 1.Award of salary withheld from May to October 2007 at Kshs.187,581 per month (Kshs.1,125,486)
  2. 2.Award of provident fund contributions from May to October 2007 at Kshs.13,519.5 (Kshs.81,117)
  3. 3.Award of medical expenses of Kshs.16,682
  4. 4.Award of transport to Eldoret show of Kshs.10,000
  5. 5.Award of leave travelling allowance for March 2007 of Kshs.23,000
  6. 6.Award of annual leave for 26 days of Kshs.159,195
  7. 7.Judgment entered for the claimant against the respondent in the total sum of Kshs.1,415,480.00/=
  8. 8.Respondent to pay the claimant's costs
  9. 9.Interest to accrue from date of filing suit

Authorities

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Legislation

  • Employment ActCap 226 (Repealed)
  • Employment Act2007 (referenced as enactment date benchmark)

Cases cited (5)

  • Imenje v Kenya National Co. Ltd
    (1986) KLR 350
  • Naaman Iniu v Trustees of the Agricultural Society of Kenya
    [2013] eKLR
  • Johnson B. Wairoma v Securicor Kenya Limited
    [2001] eKLR
  • Rift Valley Textiles Limited v Edward Onyango Ogenda No. 2 of 1992
  • Peter Baiye Gichohi & another v Attorney General
    [2012] eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction over a claim of unlawful suspension, backdated termination and withheld salary (Memorandum of Claim under the Court's rules); pre-2008 Employment Act Cap 226 (Repealed) regime considered

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, "Grace Mwenda Munjuri v Trustees of the Agricultural Society of Kenya [2019] KEELRC 2388 (KLR)", Case Analysis (2019). Cause No 1317 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2388/eng@2019-02-04

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