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ELRCPartially AllowedCause No 211 of 2016· [2020] KEELRC 979 (KLR)

Alexander Irungu Wanjiru v Registered Trustees of Sisters of Mercy (Kenya) t/a Mater Misericordiae Hospital [2020] KEELRC 979 (KLR)

Employment and Labour Relations Court
29 May 2020
2,715 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled the Mater Hospital unfairly dismissed its operations director because the employer itself admitted it had no proof of the accusations, awarding him Kshs. 6.57 million.

What this practically means

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Executive summary

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The claimant, employed by the respondent hospital from May 2014 and confirmed as Director of Operations and Administration from 01.06.2015 at Kshs. 470,000 per month on a two-year contract, was terminated by letter dated 12.02.2016 following a disciplinary hearing on allegations including irregular tender award, alteration of the procurement policy, directing inflated cafeteria supplies and mismanagement of procurement staff. He sought reinstatement or, alternatively, Kshs. 17,390,000 comprising notice pay, 24 months' compensation and service pay, plus gratuity, a certificate of service and costs. The court found a valid contract existed and that termination occurred by the letter of 12.02.2016. On procedure, the claimant received a detailed show-cause letter, was invited to and attended the disciplinary hearing, and never named witnesses; the subsisting court order in Cause No. 141 of 2016 did not relate to or impair the disciplinary process, so procedural fairness under section 43 was met. However, on substance, the respondent's own acting CEO (RW1) confirmed there was no evidence supporting any of the allegations at the time of termination - the policy change was effected after the show-cause letter, experts had participated in the tender award, and promotions were outside the claimant's role. The court held the termination was unfair for want of valid reasons. Remedies: 12 months' salary (Kshs. 5,640,000) under section 49, half-month salary for February 2016 (Kshs. 235,000), one month in lieu of notice (Kshs. 470,000), and prorated gratuity (Kshs. 229,125) - totaling Kshs. 6,574,125. Reinstatement was refused as impracticable and statutorily barred. A certificate of service, costs of the suit, and stay of execution until 01.10.2020 due to Covid-19 were ordered.

Key legal issues

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01

Whether the termination was procedurally fair

Holding

Procedural fairness was complied with; show-cause letter, invitation to and attendance at disciplinary hearing satisfied section 43 notice and hearing requirements

Reasoning

The claimant received a detailed show-cause letter dated 02.02.2016, was invited to a disciplinary hearing and attended it. The court order in Cause No. 141 of 2016 did not relate to the disciplinary proceedings and did not impair them. The claimant never named his proposed witnesses before or during the hearing, so the disciplinary process met the basic tenets of fairness.

p. 3
02

Whether there were valid reasons for termination

Holding

Termination was unfair for want of valid reasons at the time of termination

Reasoning

RW1 (Dr. Agnes Chege) testified that as at termination there was no proof the claimant altered the procurement policy, that experts had participated in the tender award, that she had no evidence of inflated cafeteria supply directives, and that promotions were outside the claimant's role. The court treated this evidence as conclusive that there was no valid reason to terminate, rendering the dismissal unfair in substance.

p. 3
03

Whether reinstatement was available

Holding

Reinstatement refused as impracticable and statutorily barred

Reasoning

Over three years had lapsed since dismissal, the relationship was irreparably strained, and section 12 of the Employment and Labour Relations Court Act, 2011 bars reinstatement after the statutory period. Monetary remedies were awarded instead.

p. 4

Legal principles established

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  • An employer must show valid reasons for termination as at the time of termination under section 43 of the Employment Act, 2007
  • Due process requires notice and hearing; where an employee receives a show-cause letter, is invited to and attends a disciplinary hearing, the process meets the basic tenets of fairness

Court orders

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  1. 1.Declaration that the termination of the claimant's employment by the respondent was unfair
  2. 2.Respondent to pay the claimant Kshs. 6,574,125.00 (less lawful PAYE) by 01.10.2020, failing interest at court rates from the date of judgment till full payment
  3. 3.Respondent to deliver a certificate of service within 30 days
  4. 4.Stay of execution until 01.10.2020 in view of the Covid-19 situation
  5. 5.Respondent to pay the claimant's costs of the suit

Authorities

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Legislation

  • Employment Actsection 44(4)(c) and (g)
  • Employment Actsection 43
  • Employment Actsection 49
  • Employment Actsection 35
  • Employment and Labour Relations Court Actsection 12
Jurisdiction invoked
Employment and Labour Relations Court Act, 2011, section 12; Employment Act, 2007

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, "Alexander Irungu Wanjiru v Registered Trustees of Sisters of Mercy (Kenya) t/a Mater Misericordiae Hospital [2020] KEELRC 979 (KLR)", Case Analysis (2020). Cause No 211 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/979/eng@2020-05-29

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