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Case Brief · caselaw.co.ke
ELRCDismissedCause No 434 of 2012· [2020] KEELRC 317 (KLR)

Chris M Mutua v New K C C Ltd [2020] KEELRC 317 (KLR)

Employment and Labour Relations Court
23 October 2020
771 words in judgment
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The bottom line

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A Kenyan court dismissed an employee's Kshs 1.8 million claim because he ignored his employer's show-cause letter and had no proof of promotion.

What this practically means

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Executive summary

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This was a first-instance employment claim filed on 16.03.2012 in which the claimant challenged the termination of his employment by the respondent on 11.08.2009 as unlawful, arbitrary and bad in law. He claimed acting allowance, underpayment, salary for eleven days worked in August 2009, one month's salary in lieu of notice, maximum damages of twelve months' salary under the Employment Act, 2007, and half salary for the period of suspension, totalling about Kshs. 1.8 million. The claimant alleged he had been promoted to Acting Export Manager in September 2008, was suspended over allegations of unprocedural sales and defrauding the company, and was never given a chance to defend himself or informed of the outcome of investigations. The respondent admitted the employment but asserted it was on fixed-term contracts as a data analyst, denied the promotion, and contended the claimant failed to respond to the show-cause letter of 11.08.2009 by the 17.08.2009 deadline, leading to dismissal by letter dated 29.12.2009; the claimant also faced criminal charges for forgery. The court found no evidence of the appointment as Acting Export Manager, defeating the acting allowance and underpayment claims. It held the respondent was entitled to treat the claimant as culpable after he failed to respond to the show-cause letter, and that a valid reason for termination existed under section 43 of the Employment Act. Judgment was entered for the respondent, dismissing the suit with costs, delivered at Nairobi by video-link on 23rd October 2020.

Key legal issues

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01

Whether the claimant held the position of Acting Export Manager

Holding

Claim failed for want of evidence of the appointment

Reasoning

The claimant alleged promotion to Acting Export Manager in September 2008 and claimed an acting allowance of Kshs. 72,558 and underpayment of Kshs. 870,696. The respondent denied the promotion, asserting fixed-term contracts as a data analyst at Kshs. 19,942 monthly. The court found no documentary or oral evidence supporting the alleged appointment, so the associated claims failed.

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02

Whether the termination was for a valid reason under section 43 of the Employment Act

Holding

Yes - the respondent had a valid reason to terminate

Reasoning

The claimant was suspended on 11.08.2009 over allegations of unprocedural sales to export customers and defrauding the company, and was required to respond by 17.08.2009. He never replied. The court held the respondent was entitled to treat him as culpable upon his silence and had shown a genuine reason for termination. The claimant was also separately charged in criminal case no. 3735 of 2009 for forgery.

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03

Whether the claimant was afforded an opportunity to defend himself

Holding

The opportunity was given but the claimant failed to respond

Reasoning

The suspension letter dated 11.08.2009 invited the claimant to show cause why disciplinary action should not be taken, with a reply due by 17.08.2009. The claimant alleged he was never given a chance to defend himself, but the evidence, including the dismissal letter dated 29.12.2009, showed he failed to respond to the show-cause letter, justifying the respondent treating the allegations as admitted.

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Legal principles established

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  • An employee who fails to respond to a show-cause letter as required may be treated as culpable of the allegations made against him.
  • Under section 43 of the Employment Act, an employer terminating employment must establish a valid reason for the termination.
  • A party pleading a promotion or appointment must adduce evidence of it; pleading alone is insufficient.

Court orders

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  1. 1.Judgment entered for the respondent against the claimant
  2. 2.The suit dismissed with costs

Authorities

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Legislation

  • Employment Actsection 43
  • Penal Codesection 357
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment claim)

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, "Chris M Mutua v New K C C Ltd [2020] KEELRC 317 (KLR)", Case Analysis (2020). Cause No 434 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/317/eng@2020-10-23

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