Stephen Onyiego Gichanga v Straight Security Services Limited (Cause 596 of 2015) (Employment and Labour) [2020] KEELRC 959 (KLR)
The bottom line
#A Kenyan court found no unfair termination but still awarded notice pay, prorated leave, and a certificate of service to the departing employee.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination of the claimant's employment was unfair (substantively and procedurally)
The court found no unfair termination; the evidence, including disciplinary hearing minutes showing a representative attended and a mutual consent discharge, showed termination by mutual consent
The court examined the disciplinary hearing form showing Mr. Chancha attended and made a plea for the claimant on 10th February 2015, the claimant's subsequent letter tabulating terminal dues, collection of salary for days worked, and minutes indicating discharge through mutual consent. On this evidence, the court found no procedural or substantive unfairness and no basis for compensation under Section 45 of the Employment Act.
Whether the claimant was entitled to one month's salary in lieu of notice
Yes - awarded Kshs.30,000 as the discharge letter showed discharge/termination rather than dismissal
The discharge letter dated 13th February 2015 indicated the claimant had been discharged from the company, meaning he was not dismissed but terminated. He was therefore entitled to one month's notice or pay in lieu, and the court awarded Kshs.30,000 being one month's salary.
Whether the claimant was entitled to prorated leave
Yes - awarded Kshs.9,750 for 9.75 days, the claimant having taken 6 days leave
The claimant claimed 9 months' prorated leave of Kshs.22,500. The respondent's computation of 9.75 days, accounting for the 6 days leave the claimant admitted taking in cross examination, was accepted by the court, which awarded Kshs.9,750 under this head.
Whether the claimant was entitled to a certificate of service
Yes - by dint of Section 51 of the Employment Act, 2007
The claimant sought a certificate of service as required by Section 51 of the Employment Act. Despite the respondent's assertion that the claimant was dishonest, the court held that the statutory entitlement applies and ordered issuance of the certificate.
Legal principles established
#- For a termination of employment to pass the fairness test, there must be both substantive justification and procedural fairness
- Under Section 45(2) of the Employment Act, termination is unfair where the employer fails to prove a valid reason and fair procedure
- An employee discharged by mutual consent rather than dismissed is entitled to notice or pay in lieu thereof
Court orders
#- 1.One month's salary in lieu of notice - Kshs.30,000
- 2.9.75 days prorata leave - Kshs.9,750
- 3.Certificate of service to be issued to the claimant
- 4.The respondent shall pay claimant's costs for the suit
- 5.Interest shall accrue from date of judgment till payment in full
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment claim)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Stephen Onyiego Gichanga v Straight Security Services Limited (Cause 596 of 2015) (Employment and Labour) [2020] KEELRC 959 (KLR)", Case Analysis (2020). Cause No 596 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/959/eng@2020-05-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.