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ELRCPartially AllowedEmployment and Labour Relations Cause (Memorandum of Claim filed 14th May 2014, amended 17th November 2015)· [2020] KEELRC 1226 (KLR)

ONS v Kenya Airways Limited [2020] KEELRC 1226 (KLR)

Employment and Labour Relations Court
23 April 2020
4,995 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled firing a hospitalised or rehabilitating employee for absenteeism is unfair—employers must hold a hearing even if the worker can't attend.

What this practically means

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Executive summary

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The claimant, employed by Kenya Airways as a Supplies Officer from 2005, sued for unfair termination following the amputation of his leg in 2009 and subsequent depression and alcoholism. He alleged he was injured at work by a loose nail while stocktaking, developed depression, and was terminated on 13th June 2011 while admitted at Wonder Peace Rehabilitation Centre, and sought a declaration of unfair termination, 12 months' salary as compensation, refund of tax deductions and costs. The respondent denied the workplace injury, attributed the amputation to pre-existing diabetes and HIV, and maintained the termination effective 13th July 2011 was for absenteeism without permission and after the claimant failed to respond to show cause letters or attend a panel hearing. The court framed three issues: workplace injury, unfair termination, and reliefs. On the first, the claimant's pleadings contradicted his testimony and he produced no medical report; the injury was not proved. On unfair termination, the court held the respondent knew from the rehabilitation centre's letter that the claimant was admitted for 90 days before the panel hearing, so the absence was for lawful cause and absenteeism could not justify dismissal; further, no hearing took place and it should have been conducted in the claimant's absence. The termination was unfair both substantively and procedurally. On reliefs, the court awarded 5 months' compensation (Kshs.296,340) given the contract's imminent expiry, plus one month's pay in lieu of notice (Kshs.59,268), total Kshs.355,608, with interest and costs. The tax compensation claim failed for want of registration with the National Council for Persons with Disabilities and because remitted tax is recoverable only from the Kenya Revenue Authority.

Key legal issues

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01

Whether the claimant proved injury at the workplace

Holding

The claimant failed to prove on a balance of probabilities that he sustained an injury at work

Reasoning

The claimant's pleadings contradicted his testimony: he pleaded he was rushed immediately to Kenyatta National Hospital yet testified he reported to the respondent's clinic the following day. He produced no medical report or treatment notes linking the amputation to a workplace injury, while RW1 testified there was no clinic record of the injury and that the amputation resulted from a clot caused by pre-existing diabetes and HIV.

p. 5
02

Whether the termination was for a valid reason

Holding

The termination lacked a valid reason because the absence was for lawful cause known to the respondent

Reasoning

The termination letter showed the respondent knew from the Wonder Peace Rehabilitation Centre's letter dated 18th June 2011 that the claimant was admitted for 90 days for alcoholism before the panel hearing date. Absenteeism justifies summary dismissal only if without leave or lawful cause; the respondent's knowledge of the admission made the absence lawful in character. The situation required assistance, not punishment.

p. 6
03

Whether a fair procedure was followed

Holding

The procedure was not complied with as no hearing took place

Reasoning

RW2 admitted the panel hearing never sat. Although the claimant could not attend because he was in rehabilitation, the respondent ought either to have awaited his recovery or conducted the hearing in his absence and made a determination. The claimant had also not responded to earlier show cause letters, but the respondent's knowledge of his admission at the rehab centre meant it could not simply dispense with the hearing.

p. 6
04

Entitlement to 12 months' compensation

Holding

Only 5 months' compensation awarded given the imminent expiry of the contract

Reasoning

Under section 49(4)(e) and (f) of the Employment Act the employee's length of service and reasonable expectation of continued employment are relevant. The contract would have expired 5 months after termination, so compensation was limited to 5 months' salary at Kshs.59,268 per month, plus one month's pay in lieu of notice.

p. 6
05

Compensation for deducted tax

Holding

The claim for tax compensation failed

Reasoning

Section 12(3) of the Persons with Disabilities Act and section 35(1) allow tax exemption for persons with disabilities, but paragraph 3 of the 2010 Order requires registration with the Council. The claimant was not registered during his employment and never provided a Tax Exemption Certificate; furthermore, tax remitted to KRA can only be recovered from the Authority.

p. 7

Legal principles established

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  • Absenteeism under section 44(4)(a) of the Employment Act is a ground for summary dismissal only where the absence is without leave or without other lawful cause; an employer aware of the employee's illness cannot rely on absenteeism
  • Where an employer knows an employee is unwell and hospitalised, it must await the employee's recovery or conduct the disciplinary hearing in absentia; failure to hold any hearing renders the termination procedurally unfair
  • A sick employee must notify the employer of the illness; failure to do so is a good defence for the employer, especially where the employee contributes to the illness
  • A person with disability must be registered with the Council before applying for income tax exemption, and tax already remitted to KRA is recoverable from the Authority and not from the employer

Court orders

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  1. 1.Judgment entered for the claimant in the sum of Kshs.355,608 comprising 5 months' salary as compensation (Kshs.296,340) and pay in lieu of notice (Kshs.59,268)
  2. 2.Interest at court rates from the date of judgment
  3. 3.Costs of the suit to the claimant
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (original employment dispute)

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, "ONS v Kenya Airways Limited [2020] KEELRC 1226 (KLR)", Case Analysis (2020). Employment and Labour Relations Cause (Memorandum of Claim filed 14th May 2014, amended 17th November 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1226/eng@2020-04-23

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