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ELRCDismissedCause No E614 of 2020· [2020] KEELRC 232 (KLR)

Allan Pamba v Kenya Hospital Association for anf on Behalf of the Nairobi Hospital [2020] KEELRC 232 (KLR)

Employment and Labour Relations Court
13 November 2020
3,130 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Claimant, formerly Chief Executive Officer of the Nairobi Hospital, applied by notice of motion dated 5th October 2020 for a temporary injunction restraining the Respondent from implementing a letter dated 2nd October 2020 terminating his probationary contract, which he contended ran until 8th March 2023 and was terminated without valid reason, in violation of Articles 47 and 50 of the Constitution. The Respondent opposed, contending the application was overtaken by events since an injunction cannot restrain what has already occurred; that there was no prima facie case as damages were adequate, the claimant having quantified special damages; and that the balance of convenience favoured the Respondent, a leading private hospital requiring a CEO enjoying the Board's confidence, particularly during the COVID-19 pandemic. The Respondent further relied on authorities that reinstatement is a mandatory order grantable only after a full hearing, and that parties are bound by their pleadings. Applying the Giella v Cassman Brown principles together with Section 49(4) of the Employment Act, the court found a prima facie case established and accepted that termination of a person at the apex of his career may cause irreparable harm not compensable by damages. However, on the balance of convenience, the court held that the relationship between the claimant and the Chairman of the Board, who appraised him, was already strained, and it would be illogical to force them to work together. The court also held that an injunction would effectively reinstate the claimant, a remedy available only upon a finding of unfair termination under Section 49(3). The application was dismissed with costs to abide the outcome of the main suit.

Key legal issues

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01

Whether the claimant established a prima facie case

Holding

Yes, a prima facie case was established based on the facts, including the claimant's questioning of his assessment and the grounds for termination

Reasoning

The court found the claimant had questioned his assessment for purposes of confirmation and had raised pertinent issues in his letter dated 29th September 2020 calling for examination by the court; the grounds for termination of the probationary contract were also questionable. However, the prima facie case alone did not secure the injunction.

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02

Whether the claimant would suffer irreparable harm

Holding

Yes, the court agreed that termination of a person at the apex of his career at a premium hospital may cause irreparable harm not compensable by damages

Reasoning

The court accepted that the termination impacts on the claimant's future employability, and an opportunity at Nairobi Hospital, a premium hospital in the country and region, may never present itself again. Damages, though an alternative remedy, cannot remedy such loss.

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03

Where the balance of convenience lies

Holding

The balance of convenience favoured the Respondent and militated against the injunction

Reasoning

Nairobi Hospital is a premium hospital whose CEO must work closely with the Board, especially during the COVID-19 pandemic. The relationship between the claimant and the Chairman who supervised and appraised him was already strained. Forcing them to work together would be illogical and would hurt the organisation's performance.

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04

Whether an injunction restraining implementation of a termination letter can issue at the interlocutory stage

Holding

No; such an injunction would in effect reinstate the claimant, a remedy available only upon a finding of unfair termination after a full hearing considering Section 49(4) factors

Reasoning

The court held that a termination letter takes effect upon issuance, ending the employment relationship, and only reinstatement or re-engagement under Section 49(3) of the Employment Act can reverse it. Reinstatement is not automatic and is guided by Section 49(4), including the common law principle against specific performance of contracts for service except in exceptional circumstances.

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Legal principles established

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  • A termination letter takes effect upon issuance and once it takes effect the employment relationship ends; the only way to reverse it is by an order of reinstatement or re-engagement under Section 49(3) of the Employment Act
  • Reinstatement is not an automatic remedy in employment cases; Section 49(4) of the Employment Act sets out factors the court must consider before reinstating, re-engaging, or paying compensation
  • In employment disputes at the interlocutory stage, the balance of convenience may weigh against an injunction where the relationship between the employee and the employer's leadership is irretrievably strained

Court orders

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  1. 1.The claimant's application dated 5th October 2020 seeking an interlocutory injunction restraining implementation of the termination letter is dismissed
  2. 2.Costs of the application to abide the outcome of the main suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 47, 50, 159(2)(d), 48
  • Employment ActSections 49(3), 49(4)(c),(d),(e), 50
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B

Cases cited (9)

  • Giella v Cassman Brown
  • Yellow Force Inns Ltd v Nduati and Co. Ltd
  • Mrao Ltd v First American Bank
  • Benedict Omolo v JSC
  • Gladys Shollei v JSC
  • Francis Njuguna v Construction Authority
  • Alfred Kimungui v Bomas of Kenya
  • Katunge v National Aids Control Council
    (2019) eKLR
  • Odd Jobs v Mubea
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Sections 49, 50) and the Constitution (Articles 47, 50, 159(2)(d), 48 referenced)

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, "Allan Pamba v Kenya Hospital Association for anf on Behalf of the Nairobi Hospital [2020] KEELRC 232 (KLR)", Case Analysis (2020). Cause No E614 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/232/eng@2020-11-13

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