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ELRCPartially AllowedNot stated in judgment· [2019] KEELRC 2508 (KLR)

Phyllis Wairimu Njihia v Amazing Tours and Travel Limited [2019] KEELRC 2508 (KLR)

Employment and Labour Relations Court
18 January 2019
1,683 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a Tours Manager's dismissal unfair because her employer skipped the mandatory disciplinary hearing and proved no valid reason.

What this practically means

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Executive summary

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The claimant, employed as Tours Manager from 27th March 2015 at a monthly salary of Kshs.35,000, sued for unfair termination, unpaid salary, an unlawful deduction, notice pay, leave days, interest, costs and a certificate of service. She was demoted in July 2015, suffered a Kshs.10,000 deduction from her August 2015 salary, and was terminated on 30th September 2015 with payment of Kshs.24,583.30 termed full and final settlement. The respondent admitted the employment and the termination, contending it was for non-performance and lawful, but failed to attend the hearing and filed no submissions or evidence. The court, per Maureen Onyango J, framed three issues: validity of the termination, entitlement to reliefs, and costs. Applying Sections 41, 43 and 45 of the Employment Act and following Walter Ogal Anuro, Francis Mbugua Boro and David Njoroge Muiru, the court found the termination invalid both procedurally and substantively because the claimant was never subjected to the disciplinary process required by Section 41 and no valid reason was proven. The court declared the termination unfair and awarded Kshs.35,000 for September 2015 salary, Kshs.10,000 for the August salary shortfall, Kshs.14,135 pro-rata leave, Kshs.35,000 pay in lieu of notice, and Kshs.105,000 as three months' compensation instead of the maximum twelve months sought, totaling Kshs.199,135. The respondent was ordered to pay the claimant's costs and interest at court rates on the pecuniary items from filing and on compensation from judgment.

Key legal issues

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01

Procedural and substantive fairness of termination

Holding

Termination was unfair because the claimant was not subjected to the disciplinary process required by Section 41 of the Employment Act and no valid reason was proven

Reasoning

Section 41 of the Employment Act provides the procedure for termination while Section 43 requires the employer to prove a valid reason. The respondent filed a response but elected not to call evidence or cross-examine the claimant, so its assertion of non-performance was unsubstantiated. In the absence of a disciplinary hearing and of verifiable performance targets, the termination failed both limbs of the fairness test.

p. 3
02

Entitlement to remedies

Holding

Claimant awarded one month's pay in lieu of notice, September 2015 salary, refund of Kshs.10,000 deduction, pro-rata leave and 3 months' compensation

Reasoning

Having found the termination unfair, the court declared it unfair and awarded notice pay and accrued salary. The deduction of Kshs.10,000 from August salary was refundable under Section 19(2) of the Employment Act prohibiting deductions as a reward for employment. Compensation was moderated to 3 months' salary given the short 6-month duration of service.

p. 3

Legal principles established

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  • For a termination to be fair there must be both substantive justification and procedural fairness
  • An employer must conduct a hearing as part of procedural fairness under Section 41(2) of the Employment Act before terminating employment

Court orders

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  1. 1.Declaration that the Claimant's termination of employment was unfair
  2. 2.Salary for September 2015 at Kshs.35,000
  3. 3.The shortfall on her August salary Kshs.10,000
  4. 4.Pro-rata leave Kshs.14,135
  5. 5.Pay in lieu of notice Kshs.35,000
  6. 6.Compensation Kshs.105,000
  7. 7.Total judgment of Kshs.199,135
  8. 8.The respondent shall pay claimant's costs
  9. 9.Interest at court rates on items (i)-(iv) from date of filing suit and on item (v) from date of judgment

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 19(2)
  • Employment and Labour Relations Court ActSection 12(4)
  • Industrial Court RulesRule 29(3)

Cases cited (7)

  • Shaneebal Limited Versus County Government of Machakos
    (2018) eKLR
  • Johnson Kaingu Versus Breeze Point
  • Thomas Sila Nzivo Versus Bamburi Cement Limited
    (2014) eKLR
  • Diamond Trust Bank of Kenya Limited Versus Saidi Hamad Shamisi & 2 Others
    (2015) eKLR
  • Walter Ogal Anuro –v- Teachers Service Commission
    (2013) eKLR
  • Francis Mbugua Boro –Vs- Smartchip Dynamics Ltd
    (2017) eKLR
  • David Njoroge Muiru -Vs- Elsa Limited
    (2014) eKLR
Jurisdiction invoked
Employment and Labour Relations Court Act, Section 12; Industrial Court Rules Rule 29(3)

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, "Phyllis Wairimu Njihia v Amazing Tours and Travel Limited [2019] KEELRC 2508 (KLR)", Case Analysis (2019). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2508/eng@2019-01-18

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