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ELRCPartially AllowedCause 1223 of 2013· [2019] KEELRC 2455 (KLR)

David Kimandi Ndubai v K-Rep Bank Limited [2019] KEELRC 2455 (KLR)

Employment and Labour Relations Court of Kenya
18 January 2019
1,348 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 awarded a bank manager ten months' salary because his employer terminated him using its own performance categories incorrectly.

What this practically means

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Executive summary

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The claimant, employed by K-Rep Bank Limited from 1999 and rising to Manager of the Chuka Branch, challenged the termination of his employment on 20th April 2012 on grounds of poor performance. He contended that his appraisal score of 3.3 met the basic requirements for continued employment, that no performance notice had issued, and that his appraisal was later altered. The respondent maintained that the claimant had been appraised severally, placed on a three-month performance notice from 26th January 2012, scored 3.5 (rounded to 4) indicating continued under-performance, and was terminated after due process. The court examined the respondent's own Human Resources Policies and Procedures Manual, which rated 4 as 'needs improvement' requiring coaching and a development plan, while only a rating of 5 constituted poor performance. Since the claimant was rated 4, the court held he could not be treated as a poor performer, and termination without progressive discipline was severe and unreasonable, contrary to Clause 8.1.2.3 of the HR Manual. Applying the principle that the employer bears the burden of proving the reason for termination, the court found the respondent had failed to prove a valid reason and the termination was unfair. The court awarded the claimant Kshs. 1,210,520 being ten months' salary as compensation for unfair termination, subject to taxes and statutory deductions, with interest at court rates from the date of judgment and costs of the suit. All other heads of claim were rejected for lack of evidence.

Key legal issues

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01

Valid reason for termination

Holding

The respondent failed to prove a valid reason; a rating of 4 denoted 'needs improvement', not poor performance, so the termination on the ground of poor performance was unjustified.

Reasoning

Under the respondent's own HR Policies and Procedures, a rating of 4 means 'needs improvement' and calls for coaching and a development plan, while only rating 5 is a poor performer. The claimant was rated 4, thus could not be deemed a poor performer. The employer bore the burden of proving the reason and failed, rendering the termination unfair.

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02

Procedural fairness / progressive discipline

Holding

Termination without resort to progressive discipline and without a demonstrable hearing was severe, unreasonable and contrary to the respondent's HR Manual.

Reasoning

Clause 8.1.2.3 of the respondent's HR Manual required progressive penalties and that stricter penalties not be imposed where the employee had not previously received a written warning. The claimant's rating of 4 prescribed coaching and a development plan within six months; immediate termination was severe and unreasonable.

p. 2
03

Alteration of appraisal score

Holding

The variation of the claimant's appraisal rating from 3.3 to 3.5 (rounded to 4) undermined the respondent's case.

Reasoning

The appraisal initially placed the claimant at 3.3, which the respondent later varied claiming overrating on certain components. The claimant testified the agreed rating was to be signed by both parties. The unexplained variation cast doubt on the fairness and integrity of the assessment relied on to terminate him.

p. 2

Legal principles established

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  • The burden of proving the reason for termination of employment rests on the employer, and failure to do so renders the termination unfair.

Court orders

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  1. 1.Judgment entered against the respondent in the sum of Kshs. 1,210,520 being ten months' salary as compensation for unfair termination, subject to taxes and statutory deductions
  2. 2.Interest on the award at court rates from the date of judgment until payment in full
  3. 3.Claimant to have costs of the suit
  4. 4.Other heads of claim rejected for lack of evidence

Authorities

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Legislation

  • Employment Actburden of proof of reason for termination
  • K-Rep Bank Human Resources Policies and Procedures ManualClauses 3.7.2 and 8.1.2.3
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (first-instance employment cause)

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, "David Kimandi Ndubai v K-Rep Bank Limited [2019] KEELRC 2455 (KLR)", Case Analysis (2019). Cause 1223 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2455/eng@2019-01-18

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