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ELRCPartially AllowedCause dated 30th March 2015, filed 31st March 2015· [2020] KEELRC 1471 (KLR)

Rose Akeyo Mwomo v Association of Sisterhoods of Kenya [2020] KEELRC 1471 (KLR)

Employment and Labour Relations Court
27 February 2020
1,799 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that ending a contract early over alleged misconduct requires a fair hearing, awarding the employee three months' salary.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as an Accountant from 2005 on renewable one-year contracts, was sent on paid leave on 23rd October 2014 following concerns over a greenhouse project and financial inconsistencies in her office. She responded to a show cause letter through her advocate on 30th October 2014. On 15th December 2014 the Respondent relieved her of her duties and declined to renew her contract, which was due to expire on 31st December 2014. She was paid one month's salary in lieu of notice and severance pay. The Claimant sued for declarations that the non-renewal was unfair and wrongful and breached natural justice, general damages and costs. The Respondent justified its action on grounds of financial discrepancies, relying on Section 44 of the Employment Act permitting summary dismissal for gross misconduct, and contending the Claimant was given an opportunity to respond and paid her terminal dues. The court found that although the Respondent had a right not to renew a term contract expiring 31st December 2014, the termination letter premised the cessation on alleged malpractice rather than expiry of term. The Claimant was therefore entitled to a hearing, which she was denied, rendering the termination unfair. The court awarded three months' salary as compensation (Kshs. 105,819/=), considering the imminent expiry of the contract, and awarded the Claimant costs. The general relief for damages was effectively subsumed in the compensation award.

Key legal issues

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01

Non-renewal of a term contract versus termination before expiry

Holding

Though the Respondent had a right not to renew the expiring contract, the letter of 15/12/2014 showed the contract was being terminated early on grounds of alleged malpractice, not merely non-renewal, rendering the dismissal unfair without a hearing.

Reasoning

The court examined the contract documents and found the Claimant served on a one-year renewable contract expiring 31/12/2014. The 15/12/2014 letter, however, terminated the contract before its due date citing malpractice arising from prior communications. Since the termination was premised on misconduct rather than expiry of term, the employer could not rely on the right of non-renewal and owed the Claimant a hearing, which was denied.

p. 3
02

Right to a fair hearing before termination for alleged misconduct

Holding

The Claimant was entitled to a hearing on the alleged malpractice and its denial rendered the termination unfair, notwithstanding her response to the show cause letter through counsel being deemed insufficient.

Reasoning

The Respondent argued under Section 44 of the Employment Act that gross misconduct permitted summary dismissal without hearing, and that the Claimant was given an opportunity to respond. The court held that where malpractice is alleged, a hearing is required; the response through her advocate on 30/10/2014 did not satisfy this requirement, and the contract was terminated before its due date without such a hearing.

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03

Appropriate remedy for unfair termination

Holding

Three months' salary as compensation, taking into account that the contract was shortly due to expire.

Reasoning

Having found the termination unfair, the court exercised discretion to award compensation equivalent to three months' salary, expressly factoring in that the Claimant's term contract was about to lapse on 31/12/2014. The Claimant had already received one month's salary in lieu of notice and severance pay of Kshs. 146,293.27, but no further reduction appears to have been made on that account.

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Legal principles established

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  • Where a term contract is terminated before its expiry on grounds of alleged malpractice, the employee is entitled to a hearing before termination
  • An employer of an employee on a terms contract has a right not to renew the contract at its expiry

Court orders

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  1. 1.Award of 3 months' salary as compensation for unfair termination (Kshs. 105,819/=)
  2. 2.Respondent to pay costs of the suit

Authorities

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Legislation

  • Employment ActSection 44
  • Employment ActSections 41(1) and (2) and 45
  • Employment ActSections 35, 36

Cases cited (3)

  • Patrick Asuma Vs Arm Cement Limited
    (2019) eKLR
  • Tomilson Vs L M & S Railways
    (1944) 1 ALL ER 537
  • Sinclair Vs Neighbour
    (1967) 2 QB 279
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the 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, "Rose Akeyo Mwomo v Association of Sisterhoods of Kenya [2020] KEELRC 1471 (KLR)", Case Analysis (2020). Cause dated 30th March 2015, filed 31st March 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1471/eng@2020-02-27

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