Alloise Ngugi Muia v Green Pot Enterprises Limited [2020] KEELRC 239 (KLR)
The bottom line
#A Kenyan court awarded an ex-employee over Kshs.536,000 because the employer never put a probation extension or termination in writing.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant was on probation at the time of separation
He was not; the three-month probation lapsed on 12th November 2016 and was never validly extended in writing
The contract at Clause 14.1 allowed a three-month probation extendable if the Respondent deemed it appropriate. The Respondent only verbally contended an extension on account of poor performance. Following Lucy Wangui Wanyika v Nam Consult Limited, an extension modifying the contract required clear and documented written communication, which was absent.
Whether the Claimant absconded or was terminated, and the fairness of the termination
The Claimant's employment was verbally terminated on 8th February 2017 on account of alleged redundancy; the termination amounted to unfair summary dismissal as no notice or hearing was given
In the absence of any letter of termination, and on the evidence of witness Samuel Mudinyu, the court found the services were verbally terminated. Even on the absconding allegation, Section 41 of the Employment Act entitled the Claimant to a fair disciplinary process; the employer bore the burden of justifying the termination under Section 47(5) and discharged none of it.
Whether the Claimant is entitled to the reliefs sought
Yes; compensation of 2 months' gross salary under Section 49, notice pay under Clause 14.3, accrued leave and unpaid February 2017 salary were all awarded
The court relied on Nelson Ogeto Mogaka v Geothermal Development Company Limited declaring unconstitutional the 13-month continuous-service limitation in Section 45(3), so the Claimant could claim unfair termination despite under one year of service. The employer failed to disprove accrued leave entitlement, being the party bound to keep employment records, and never controverted the claim for 8 unpaid days.
Legal principles established
#- Where an employer alleges an employee was on probation and seeks to extend probation, the extension must be communicated in writing
- A termination without notice or hearing amounts to unfair summary dismissal; even desertion requires the employer to afford a fair disciplinary process
- The burden of justifying the grounds for termination rests on the employer
- For a termination to pass the fairness test there must be both substantive justification and procedural fairness
Court orders
#- 1.Judgment entered in favour of the Claimant against the Respondent in the total sum of Kshs.536,577/-
- 2.Compensation for unfair termination of Kshs.280,000/- (2 months' gross salary)
- 3.Five weeks' salary in lieu of notice of Kshs.172,666.62/-
- 4.Accrued leave days (8.75 days) of Kshs.40,833.28/-
- 5.Salary for 8 unpaid days worked in February 2017 of Kshs.43,076.92/-
- 6.Costs of the suit awarded to the Claimant plus interest at court rates from the date of the Judgment until payment in full
- Jurisdiction invoked
- First-instance claim under the Employment Act, 2007 (Employment and Labour Relations Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Alloise Ngugi Muia v Green Pot Enterprises Limited [2020] KEELRC 239 (KLR)", Case Analysis (2020). Cause No 770 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/239/eng@2020-11-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.