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ELRCPartially AllowedNot stated in the judgment· [2020] KEELRC 740 (KLR)

Edward Abraham Otopi v Creative Consolidated Systems Limited [2020] KEELRC 740 (KLR)

Employment and Labour Relations Court
3 July 2020
1,375 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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An employer who fires a worker without a written reason and a hearing will lose in Kenya's Employment Court, even if the worker only served six months.

What this practically means

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Executive summary

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The claimant, employed as a driver on a one-year contract at Kshs.40,000 per month, sued the respondent for unfair termination of his employment. He testified that after the lorry he drove (KBY 339J) was damaged, he was sent on compulsory leave, asked to write a report, and then told his services were no longer required. He was never issued a show cause letter, never given a hearing, and never received a termination letter. The respondent entered appearance but filed no defence and called no witness, leaving the claim undefended. The court held that the respondent's factual allegations made only in submissions (drunkenness and reckless driving) had no evidentiary value, and that the claimant's uncontroverted averments stood as the factual position. It found non-compliance with Section 41 (procedure) and Section 43 (substantive grounds) of the Employment Act and declared the termination unfair. On remedies, the claimant sought notice pay of Kshs.40,000 and 12 months' compensation of Kshs.480,000. The court awarded notice pay in full under Section 49(1)(a) but, considering the claimant's short tenure of six months and all circumstances, awarded only 2 months' salary (Kshs.80,000) as compensation, a total of Kshs.120,000. The respondent was also directed to issue a certificate of service under Section 51, to pay the claimant's costs, and the decretal sum was to attract interest at court rates from the date of judgment. Judgment was delivered virtually pursuant to COVID-19 directives.

Key legal issues

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01

Procedural and substantive fairness of termination

Holding

The termination was unfair because the respondent neither issued a show cause letter nor gave a hearing, and did not prove valid grounds for termination

Reasoning

The claim was undefended as no defence was filed and no witness called. The claimant's uncontroverted evidence was that he was never issued with a show cause letter, never given a hearing, and never received a termination letter. In submissions the respondent alleged drunkenness and reckless driving, but submissions are not evidence. The court therefore found non-compliance with both the procedural requirements of Section 41 and the substantive fairness requirement of Section 43 of the Employment Act.

p. 2
02

Remedies for unfair termination

Holding

The claimant was entitled to one month's pay in lieu of notice and compensation, assessed at 2 months' salary given his short service of 6 months

Reasoning

Section 49(1)(a) entitles the claimant to notice pay of Kshs.40,000. For compensation, the court exercised discretion under Section 49, taking into account the claimant's short tenure of only 6 months and the manner of termination, awarding 2 months' salary (Kshs.80,000) instead of the 12 months claimed. A certificate of service was also ordered under Section 51.

p. 2

Legal principles established

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  • In an undefended claim, uncontroverted averments of the claimant are taken as the factual position
  • Factual assertions made only in submissions have no evidentiary value

Court orders

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  1. 1.Declaration that the termination of the claimant's employment was unfair
  2. 2.Payment of one month's salary in lieu of notice of Kshs.40,000 under Section 49(1)(a) of the Employment Act
  3. 3.Payment of 2 months' salary as compensation for unfair dismissal in the sum of Kshs.80,000
  4. 4.Total award of Kshs.120,000
  5. 5.The respondent to issue the claimant a certificate of service in compliance with Section 51 of the Employment Act
  6. 6.The respondent to pay the claimant's costs of the claim
  7. 7.The decretal sum to accrue interest at court rates from the date of judgment

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 49(1)(a)
  • Employment ActSection 51
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (5)

  • Peter Wesonga Opaka v Hilltop Preparatory Schools and Another
    (2019) eKLR
  • Dede Esi Annie Amanor Wilks v Action Aid International
    (2014) eKLR
  • Fibre Link Limited v Start Television Productions Limited
    (2015) eKLR
  • Efil Enterprises Limited v Dickson Mathambayo Kilonzo
    (2018) eKLR
  • Beatrice Mbula Mutilu and 2 Others
    (2019) eKLR
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, "Edward Abraham Otopi v Creative Consolidated Systems Limited [2020] KEELRC 740 (KLR)", Case Analysis (2020). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/740/eng@2020-07-03

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