Felix Mwalimu v Nairobi Safari Club [2020] KEELRC 1018 (KLR)
The bottom line
#A Kenyan employer that terminates without a valid reason, notice, or redundancy procedure under the Employment Act must pay the employee substantial compensation and costs.
What this practically means
#Executive summary
#Key legal issues
#Validity of the reason for termination
The termination letter gave no reason; the Respondent failed to prove a valid reason under Section 43 of the Employment Act.
The termination letter cited low business but did not properly articulate a reason. RW1 confirmed no notice was issued and the Labour office was not informed. The court held the burden of proving validity under Section 43 was not discharged, and that redundancy procedures under Section 40 were not followed.
Effect of reinstatement and alleged compromise agreement on the claim
Reinstatement did not compromise the claim; the new appointment letter did not indicate the claim had been withdrawn, so the cause of action for the June 2015 termination survived.
The Respondent argued the suit was overtaken by events after reinstatement and a salary review. The court found no evidence in the new appointment letter of any compromise of the filed claim, and the Claimant had not been compensated for the unfair termination, so compensation remained payable.
Fair hearing before termination
No fair hearing was accorded before the June 2015 termination.
The court found no valid reason and no fair process. RW1 confirmed that no notice was issued prior to termination and that the Labour office was not informed, undermining procedural fairness.
Legal principles established
#- An employer must establish a valid reason for termination and accord the employee a fair hearing; failure to do so renders the termination unfair.
- Where termination is on account of low business (redundancy), the mandatory provisions of Section 40 of the Employment Act must be complied with.
Court orders
#- 1.1 month's salary in lieu of notice of Kshs. 200,000
- 2.Unpaid June 2015 salary of Kshs. 200,000
- 3.Unpaid leave for 8 months computed as 8/12 x 30 x 200,000 = Kshs. 132,000
- 4.8 months' salary as compensation for unfair termination computed as 8 x 200,000 = Kshs. 1,600,000, all subject to statutory deductions
- 5.Respondent to pay costs of the suit plus interest at court rates from the date of judgment
- Jurisdiction invoked
- Original employment and labour relations jurisdiction of the Employment and Labour Relations Court (constitutional/statutory basis not expressly cited in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Felix Mwalimu v Nairobi Safari Club [2020] KEELRC 1018 (KLR)", Case Analysis (2020). Cause No 1341 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1018/eng@2020-05-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.