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ELRCPartially AllowedNot stated in judgment (Memorandum of Claim dated 9th October 2019, filed 11th October 2019)· [2020] KEELRC 257 (KLR)

Anita Nzisa Kivulu v Cancer Care Kenya Limited [2020] KEELRC 257 (KLR)

Employment and Labour Relations Court
6 November 2020
2,132 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 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, employed as Marketing Manager on a monthly salary of Kshs.160,000 from 22nd August 2018, claimed she was terminated unfairly on 2nd October 2019 shortly after returning from maternity leave. She alleged she was denied a fair hearing, that the purported disciplinary hearing of 23rd September 2019 never took place, and that the Respondent breached Sections 45, 47(3), 49 and 50 of the Employment Act and the Labour Institutions Act. She sought a declaration of unfair termination, one year's compensation, gratuity, leave days, a Certificate of Service and costs. The Respondent denied terminating her employment, contended due process was followed through a disciplinary hearing, that she was paid all dues and signed a discharge voucher on 8th October 2019, and urged dismissal of the claim. Deciding the matter on written submissions, the court framed two issues: whether the termination was fair, and whether the Claimant was entitled to the prayers sought. The court found the Respondent failed to comply with Section 41 of the Employment Act, as there was no evidence of proper service of notice of a disciplinary hearing highlighting the allegations to enable the Claimant mount a defence. Applying Section 45(4)(b), the court held the Respondent did not act in accordance with justice and equity, and the termination was unfair. On remedies, the court awarded six months' gross pay (Kshs.1,140,000) as compensation, considering her short service and recent maternity leave, awarded Kshs.67,692.40 for untaken leave days (total Kshs.1,207,692.40), ordered a Certificate of Service under Section 51, and awarded costs with interest. The claim for gratuity failed as it was not provided for in her terms of service. Judgment was delivered virtually at Nairobi on 6th November 2020 under the COVID-19 directives.

Key legal issues

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01

Whether the Respondent complied with Section 41 of the Employment Act (notification and hearing before termination)

Holding

The Respondent did not comply with Section 41; there was no proper notice of the disciplinary hearing highlighting the allegations, so the Claimant could not mount a defence

Reasoning

The court set out Section 41's requirements: explanation of reasons in a language the employee understands and the right to have another employee or union representative present, plus hearing representations. The Claimant denied any disciplinary hearing took place on 23rd September 2019 and disputed the minutes. The Respondent produced no evidence of proper service of a notice of disciplinary hearing, and the meeting was, at most, a welcome-back discussion. Compliance failed.

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02

Whether the termination was unfair under Section 45 of the Employment Act

Holding

The termination was unfair; the Respondent did not act in accordance with justice and equity, particularly given the Claimant had just returned from maternity leave

Reasoning

Applying Section 45(4)(b), the court found the employer did not act with justice and equity. Both elements of fairness (valid reason and fair procedure) were unmet: no valid reasons were demonstrated and no fair procedure was followed. The circumstances, including termination immediately upon return from maternity leave, reinforced the finding of unfairness.

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03

What remedies the Claimant is entitled to

Holding

Six months' gross pay as compensation (Kshs.1,140,000), leave days not taken (Kshs.67,692.40), a Certificate of Service, and costs; gratuity refused

Reasoning

Having found unfair termination, the court assessed compensation at six months' gross pay considering the short duration of service and the fact the Claimant had just reported from maternity leave. A Certificate of Service was mandatory under Section 51. Gratuity failed as not provided for in the contract. Leave days succeeded because the Respondent's own minutes alluded to leave not taken and the Respondent did not specifically deny the prayer.

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Legal principles established

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  • For a termination to be fair, an employer must comply with Sections 41 and 43 of the Employment Act, and failure to comply renders the termination unfair under Section 45
  • Termination is unfair where the employer fails to serve notice of a disciplinary hearing clearly highlighting the accusations to enable the employee mount a defence
  • A termination shall be unfair where the employer did not act in accordance with justice and equity (Section 45(4)(b))

Court orders

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  1. 1.Declaration that the Claimant's termination was unfair (found on analysis)
  2. 2.Compensation for unfair termination of six months' gross pay: Kshs.190,000 x 6 months = Kshs.1,140,000/-
  3. 3.Award of Kshs.67,692.40 on account of leave days earned but not taken
  4. 4.Total award of Kshs.1,207,692.40
  5. 5.Respondent to issue the Claimant with a Certificate of Service under Section 51 of the Employment Act, 2007
  6. 6.Claimant awarded costs of the suit with interest at court rates from the date of judgment until full settlement

Authorities

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Legislation

  • Employment Act, 2007Sections 41, 42(1), 43, 44(3), 44(4), 45, 45(4)(b), 47(3), 49, 50, 51
  • Labour Institutions Act, 2007Sections 12(1), (2) and 15
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B
  • Constitution of Kenya, 2010Articles 159(2)(d) and 48

Cases cited (3)

  • Pamela Nelima Lutta v Mumias Sugar Co. Ltd
    [2017] eKLR
  • Alex Wainaina Mbugua v Kenya Airways Limited
    [2017] eKLR
  • Samson S. Maitai & Another v African Safari Club Limited & Another
    [2010] eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction under the Employment Act, 2007 and Labour Institutions Act, 2007 (specific constitutional/statutory article not stated)

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, "Anita Nzisa Kivulu v Cancer Care Kenya Limited [2020] KEELRC 257 (KLR)", Case Analysis (2020). Not stated in judgment (Memorandum of Claim dated 9th October 2019, filed 11th October 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/257/eng@2020-11-06

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