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ELRCPartially AllowedCause No. 1266 of 2015· [2020] KEELRC 1672 (KLR)

Fredrick Obiero Owino v Bridge International Academies Limited [2020] KEELRC 1672 (KLR)

Employment and Labour Relations Court
30 January 2020
2,586 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled Bridge Academies unfairly sacked an employee, awarding him over Kshs. 600,000 because it never gave him a fair hearing.

What this practically means

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Executive summary

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The Claimant, employed as an Academy Improvement Manager by the Respondent on 27 March 2014 at a monthly salary of Kshs. 55,000/=, was summarily dismissed on 10 June 2014 on grounds of failure to fulfil job duties and failure to attend meetings at Mbale and Shamakhokho. He sued for a declaration that the termination was unlawful and unjust, terminal dues of Kshs. 744,333.00, costs and interest. The Respondent admitted the engagement but contended the dismissal was justified for absconding duty and poor performance, and argued that the Claimant was serving a six-month probation, exempting it from Sections 36 and 41 of the Employment Act, 2007. The sole issue turned on whether the Claimant was on probation. Examining the offer letter, the court found employment was contingent only on completion of the AIM Training Programme, which the Claimant completed, and the letter contained no probationary terms; the Respondent's witness confirmed as much. The Claimant was therefore entitled to the protections of Section 41. As he was never subjected to a disciplinary hearing and the veracity of the reasons for termination was never tested, the dismissal was declared unfair and unjustified. The court awarded one month's salary in lieu of notice (Kshs. 55,000/=) and ten months' salary as compensation (Kshs. 550,000/=), totalling Kshs. 605,000/=, together with costs and interest at court rates from the date of judgment. The full quantum of terminal dues claimed was not awarded; the claim succeeded only in part.

Key legal issues

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01

Whether the Claimant was on a probationary contract exempting the employer from Sections 36 and 41 of the Employment Act

Holding

The Claimant was not on probation; the offer letter made employment contingent only on completion of the AIM Training, and there was no indication of a 6-month probationary period

Reasoning

The court examined the offer letter of 27 March 2014 and found employment was contingent on performance during the AIM Training Programme, which the Claimant completed, hence his continued employment. The letter contained no probation terms; RW1 confirmed the offer letter did not contain any terms of probation. The respondent's contention rested on an unsigned contract the Claimant failed to return, which the court did not accept.

p. 4
02

Whether the summary dismissal was procedurally fair under Section 41 of the Employment Act, 2007

Holding

The dismissal was unfair and unjustified because the Claimant was never subjected to a disciplinary hearing and the reasons for termination were never tested

Reasoning

Section 41 mandates that before terminating employment on grounds of misconduct or poor performance, the employer must explain the reasons and hear the employee's representations. The Claimant was accorded no such opportunity; no disciplinary process tested the veracity of the allegations of absconding duty and missing meetings. The dismissal therefore failed both the procedural requirements of Section 41 and the constitutional guarantees of fair labour practices and fair administrative action.

p. 4

Legal principles established

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  • An employee whose employment is not subject to a probationary period is entitled to the procedural protections of Section 41 of the Employment Act before termination
  • Where an offer letter does not indicate that appointment is subject to a probationary period, a court will not infer one from an unsigned contract
  • Termination without a disciplinary hearing, where the veracity of the reasons for termination was never tested, is unfair and unjustified

Court orders

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  1. 1.Declaration that the Claimant's dismissal was unfair and unjustified
  2. 2.Payment of 1 month's salary in lieu of notice (Kshs. 55,000/=)
  3. 3.Payment of 10 months' salary as compensation for unlawful and unfair termination (Kshs. 550,000/=)
  4. 4.Respondent to pay costs of the suit plus interest at court rates with effect from the date of the judgment

Authorities

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Legislation

  • Employment Act, 2007Section 18(4)
  • Employment Act, 2007Section 36
  • Employment Act, 2007Section 41
  • Employment Act, 2007Sections 43 and 44
  • Employment Act, 2007Section 42
  • Employment Act, 2007Section 45
  • Companies Act
  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 47(1)

Cases cited (5)

  • Nancy Philemons Onaya Odeck Vs Technical University of Kenya
    (2014) eKLR
  • Peris Nyambura Kimani Vs Dalbit Petroleum Limited
    Petition 63 of 2013
  • Agnes Yahuma Digo Vs Pj petroleum Equipment Limited
    (2011) eKLR
  • Rebecca Ann Maina & 2 Others Vs Jomo Kenyatta University of Agriculture and Technology
    (2014) eKLR
  • John Muthomi Mathiu Vs Mastermind Tobacco (K) Limited
    (2018) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; Articles 41 and 47(1) of the Constitution of Kenya, 2010 invoked in the claim)

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, "Fredrick Obiero Owino v Bridge International Academies Limited [2020] KEELRC 1672 (KLR)", Case Analysis (2020). Cause No. 1266 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1672/eng@2020-01-30

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