Thomas Bacha Ndungu v Kiu Construction Company Limited [2020] KEELRC 395 (KLR)
The bottom line
#A Kenyan court ruled that suspending an employee indefinitely without pay amounts to firing them, and awarded the worker over Kshs. 450,000.
What this practically means
#Executive summary
#Key legal issues
#Whether the indefinite suspension amounted to termination
Yes - the indefinite suspension without pay, and the Respondent's failure to respond to the advocates' letters clarifying status, amounted to termination
The Claimant was suspended indefinitely on 6th July 2015. His advocates wrote twice seeking clarification and the Respondent never responded. The termination letter the Respondent relied on was dated 10th October 2015, long after the demand letters, so the court rejected the claim that a termination letter had issued earlier. Suspension without pay and without communication of continued employment was treated as termination.
Whether there were valid reasons for summary dismissal
Yes - the Claimant admitted absconding duty in his response to the show cause notice, giving the Respondent a valid reason under section 44(4)
Although the Claimant testified he had been sent to Sagana to ferry a machine, his own written response to the show cause notice told a different story and contained an apology for absconding on 4th July 2015. The court preferred the written admission over the oral testimony, finding the Claimant guilty of absconding duty on his own admission, which constituted a valid and fair reason for summary dismissal.
Whether due process under section 41 of the Employment Act was followed
No - a notice to show cause and response alone do not satisfy section 41; the dismissal was therefore an unfair termination
Section 41 requires the employer to explain the reasons in a language the employee understands, in the presence of a colleague or shop floor union representative, and to hear and consider representations. The evidence that the Claimant was never given such an opportunity was uncontroverted. The Respondent's issuance of a show cause notice and receipt of a response fell short of the mandatory procedure, rendering the dismissal unfair.
Entitlement to reliefs
Notice pay, five months' compensation, leave pay of 119 days and overtime for 3 months at Mwingi awarded; service gratuity refused
Notice pay was awarded as the Respondent produced no proof of payment. Compensation was fixed at five months considering section 49(4) factors. Leave was awarded at 119 days on 21 days per year because the Respondent's assertion of leave taken was unsupported. Overtime was computed for the 3-month Mwingi posting at 88 hours per week above the 52-hour statutory maximum, at 1.5 times the hourly rate, since the Claimant could not substantiate hours at other stations or double-time claims.
Legal principles established
#- An indefinite suspension without pay, coupled with the employer's failure to communicate that employment is still in force, amounts to termination
- Termination is unfair unless the employer proves both valid and fair reasons and a fair procedure
- Issuing and receiving a response to a notice to show cause does not, by itself, satisfy the mandatory hearing requirements of section 41 of the Employment Act
- An employer bears the obligation under section 74(1)(f) of the Employment Act to keep records of leave; failure to produce them leaves uncontroverted the employee's claim for unpaid leave
Court orders
#- 1.Judgment entered for the Claimant against the Respondent in the total sum of Kshs.451,772.26
- 2.The Respondent shall issue a certificate of service to the Claimant
- 3.The Respondent shall pay the Claimant's costs
- 4.Interest to accrue on the decretal sum at court rates from the date of judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (Employment and Labour Relations Court Act); specific Article 159(2)(d) and Article 48 of the Constitution invoked regarding delivery of judgment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Thomas Bacha Ndungu v Kiu Construction Company Limited [2020] KEELRC 395 (KLR)", Case Analysis (2020). Cause No 1740 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/395/eng@2020-10-09
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.