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ELRCDismissedNot stated in the judgment· [2020] KEELRC 990 (KLR)

Rose Sang v Siginon Group Limited [2020] KEELRC 990 (KLR)

Employment and Labour Relations Court
29 May 2020
3,101 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed a fired HR manager's bid to get her job back temporarily, confirming reinstatement is rarely granted before a full hearing.

What this practically means

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Executive summary

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The claimant, formerly employed by Siginon Group Limited as Group Human Resource and Administration Manager on a three-year fixed-term contract from 1st November 2018, was terminated on 6th August 2019 following a notice to show cause alleging failure to complete her Masters coursework, omission of employment history (a three-month stint at Eco Bank) from her curriculum vitae, and insubordination. She sued seeking a declaration that her dismissal was unprocedural and unfair, reinstatement or alternatively 12 months' gross salary compensation and 3 months' salary in lieu of notice, general damages for discrimination, and an injunction restraining the respondent from recruiting her replacement. Together with the memorandum of claim she filed a motion seeking an interim injunction to bar recruitment to her former position, or alternatively interim reinstatement, to preserve her position pending trial. The respondent opposed, arguing no prima facie case, no irreparable loss, balance of convenience favouring the respondent, material non-disclosure by the claimant, and that interim reinstatement would usurp managerial prerogative. Applying Giella v Cassman Brown, the court (Maureen Onyango, J) held that a prima facie case could not be determined at the interlocutory stage because the contested grounds of dismissal required evidence at full trial; that the claimant had not shown irreparable loss, having claimed monetary compensation as an alternative remedy; and that the balance of convenience favoured refusing the orders since the claimant could be reinstated upon success at trial. On reinstatement, the court held it is not an automatic remedy and is unavailable as an interim remedy absent very clear and exceptional circumstances, which were not met. The application was dismissed with costs in the cause. The main claim remains pending for full hearing.

Key legal issues

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01

Whether interim reinstatement can be granted pending full hearing

Holding

Interim reinstatement is unavailable as a remedy; reinstatement requires consideration of Section 49(4) factors after a full hearing, or very clear and exceptional circumstances before hearing, which were not met

Reasoning

The Employment Act provides reinstatement as a remedy for unfair termination but requires the court to weigh factors in Section 49(4) including employee contribution to termination, practicability of reinstatement, the common law bar on specific performance of service contracts, and length of service. These can only be ascertained after hearing evidence. Interim reinstatement is therefore only granted in very clear and exceptional circumstances, and the applicant did not meet that threshold.

p. 4
02

Whether the claimant established a prima facie case for interim injunction

Holding

It was not possible to determine whether a prima facie case exists because the contested issues, such as whether the grounds for dismissal matched the notice to show cause, required evidence at full trial

Reasoning

Applying Giella v Cassman Brown, the court considered the three limbs. On the first limb, the central contention - whether the grounds for termination were those in the notice to show cause or those in the termination letter - was a matter on which the parties had no mutual interpretation, and could only be resolved after hearing evidence. The hearing and procedural steps before termination were not contested, as both sides accepted a show cause letter, response and disciplinary hearing occurred.

p. 4
03

Whether the claimant would suffer irreparable loss

Holding

The applicant failed to demonstrate loss incapable of remedy by costs or monetary compensation, having herself claimed compensation as an alternative to reinstatement

Reasoning

On the second limb, the applicant did not show any injury that could not be adequately remedied by damages. In her claim she had sought reinstatement or, in the alternative, 12 months' gross salary compensation and 3 months' salary in lieu of notice, which itself demonstrated that her loss was compensable in monetary terms.

p. 4
04

Where the balance of convenience lies

Holding

The balance of convenience tilts against granting the orders because if the claimant ultimately succeeds she can be reinstated and the respondent would deal with whoever occupies the position in the interim

Reasoning

The claimant occupied a very senior position whose roles could not be left vacant pending trial. The court reasoned that if the claimant persuades the court at full trial that she is entitled to reinstatement, there would be no obstacle to reinstating her then, and it would be the respondent's problem to resolve the position of any person hired in the interim. Preserving the vacancy was therefore unnecessary.

p. 4

Legal principles established

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  • Reinstatement under the Employment Act is not an automatic remedy and is unavailable as an interim remedy; it is granted only after proof of unfair termination at a full hearing or in very clear and exceptional circumstances
  • The court cannot determine the existence of a prima facie case at interlocutory stage where the very grounds of termination are contested and would only be determinable after hearing evidence

Court orders

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  1. 1.The application seeking interim injunction and interim reinstatement is dismissed
  2. 2.Costs shall be in the cause

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 49(4)
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (10)

  • Moses C. Muhia Njoroge & 2 Others v James W. Lesaloi and 5 Others
    [2014] eKLR
  • Mrao Ltd v First American Bank of Kenya and 2 Others
    [2003] KLR 125
  • John Njue Nyaga v Nicholas Njiru Nyaga & Another
  • Dock Workers Union v Kenya Ports Authority
  • Nguruman Limited v Jan Bonde Nielsen & 2 Others
  • Alfred Kimungai v Bomas of Kenya
  • Dorothy Vivian Atieno Ogutu v Mumias Sugar Company Limited
  • Wells Fargo Limited v Cyrus Kioko and 48 Others
  • Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 Others
  • Giella v Cassman Brown & Company Limited
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes, with Article 159(2)(d) and Article 48 of the Constitution invoked for virtual delivery of the ruling

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (4)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Rose Sang v Siginon Group Limited [2020] KEELRC 990 (KLR)", Case Analysis (2020). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/990/eng@2020-05-29

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