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ELRCPartially AllowedCause No 657 of 2017· [2021] KEELRC 134 (KLR)

Caroline Mueni Mbithi v Muri Mwaniki & Wamiti Advocates [2021] KEELRC 134 (KLR)

Employment and Labour Relations Court
17 December 2021
4,683 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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A Nairobi court found a law firm had a valid reason to dismiss its court clerk but rushed the disciplinary process, awarding her about Kshs 148,676.80.

What this practically means

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Executive summary

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The claimant, a court clerk employed by the respondent law firm since 2010, sued alleging she was dismissed on 25 October 2016 on account of her pregnancy, seeking compensatory damages for wrongful dismissal, October salary, maternity leave payment, service gratuity and three months' salary in lieu of notice. The respondent denied discrimination, asserting she was terminated for misappropriation of funds, and counterclaimed Kshs 108,015. The court framed four issues: pregnancy discrimination, fairness of termination, the counterclaim, and available reliefs. On discrimination, applying the GMV v Bank of Africa criteria, the court found the claimant failed to prove pretext or nexus between her pregnancy and dismissal, noting her maternity leave had been approved before termination and she had previously taken maternity leave. On substantive justification, the court accepted that failure to account for monies entrusted for filing court documents breached the trust essential to the employment relationship, giving the respondent a valid and fair reason. However, the procedural fairness limb failed: the claimant was given about five hours to respond to a show-cause notice and only one day's notice of the disciplinary hearing, rendering the termination procedurally unfair. The counterclaim succeeded only to the extent of Kshs 27,000 which the claimant could not account for; the Kshs 70,510 claim failed for want of documentary evidence of receipt. The court awarded one month's salary in lieu of notice, salary for 26 days of October 2016, and compensation equivalent to five months' gross salary, totalling Kshs 175,676.80, offset by Kshs 27,000 for a final award of Kshs 148,676.80 with interest, with each party bearing its own costs.

Key legal issues

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01

Discrimination on account of pregnancy

Holding

Claim failed; no nexus between termination and pregnancy established

Reasoning

Applying the GMV v Bank of Africa criteria, the claimant belonged to a protected class and was qualified, but the respondent proved her maternity leave had been approved on 7 October 2016, that she had previously taken maternity leave, that other employees had done so, and that a male colleague was dismissed around the same time for similar misappropriation. She provided no prima facie proof that the employer's explanation was pretextual.

p. 3
02

Substantive justification for termination

Holding

Valid and fair reason existed - failure to account for monies issued for filing court documents

Reasoning

Under sections 43(1) and 45(2) of the Employment Act, the employer must prove valid and fair reasons on a balance of probability. Dishonesty in handling firm monies breached the trust essential to the employment relationship. The respondent genuinely believed the claimant had misappropriated funds, satisfying the substantive justification test.

p. 4
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Procedural fairness of the termination

Holding

Termination was procedurally unfair due to inadequate time to respond and prepare for the disciplinary hearing

Reasoning

Section 41(1) requires notification and an opportunity to make representations. The claimant had roughly five hours to respond to the show-cause notice and only one day's notice of the oral hearing. The respondent would have suffered no prejudice in allowing more time, and the rushed process likely affected the quality of her defence.

p. 5
04

The counterclaim

Holding

Counterclaim succeeded only to the extent of Kshs 27,000 unaccounted for

Reasoning

The schedule and claimant's own explanation showed she could not account for Kshs 27,000. However, the claim for Kshs 70,510 allegedly handed over by RW3 failed for want of any voucher or documentary evidence of receipt by the claimant; a registry letter disowning a filing receipt was insufficient.

p. 5

Legal principles established

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  • A termination is unfair where the employer proves a valid reason but fails to follow fair procedure; it is not enough to grant an employee a hearing, the hearing must be fair
  • Dismissing an employee for dishonesty requires contextual assessment of whether the dishonesty broke down the employment relationship

Court orders

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  1. 1.Judgment entered in favour of the claimant against the respondent
  2. 2.One month's salary in lieu of notice of Kshs 25,584.00
  3. 3.Salary for 26 days worked in October 2016 of Kshs 22,172.80
  4. 4.Compensation equivalent to 5 months' gross salary of Kshs 127,920.00
  5. 5.The respondent's counterclaim allowed only to the extent of Kshs 27,000/=, set off against the award
  6. 6.Final award of Kshs 148,676.80 with interest at court rates from the date of judgment until payment in full
  7. 7.Each party to bear its own costs

Authorities

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Legislation

  • Constitution of KenyaArticle 27(4)
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Employment Actsections 5(3), 35(1)(c), 35(6), 35(6)(d), 41(1), 43(1), 43(2), 44(2), 45(2), 46(a), 45(4)(b)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • ILO Maternity Protection Convention Number 183 of 2000

Cases cited (12)

  • Nicholas Otinyu Muruka vs Equity Bnak Limited
    ELRC No. 125 of 2013
  • Vincent Nyachibwede vs Bob Morgan Services Limited
    (2018) eKLR
  • Paul N. Lusewti vs Miami Enterprises Co. Limited
    (2014) eKLR
  • Kenya Revenue Authority vs Reuwel Waithaka Gitahi & 2 Others
    [2019] eKLR
  • Pius Machafu Isindu vs Lavington Security Guards Limited
    [2017] eKLR
  • Anthony Nasenya Sakwa vs Capwell Industries Limited
    [2021] eKLR
  • Caroline Nyokabi Mwangi vs Achellis Kenya Limited
    [2021] eKLR
  • Sitienei vs Nandi Tea Estates Company Limited
    [2021] KECA 103 (KLR)
  • GMV vs Bank of Africa
    (2013) eKLR
  • Judicial Service Commission v Gladys Boss Shollei & another
    [2014] eKLR
  • Mc KINLEY –VS- B.C. TEL
    [2001] 2 S.C.R 161
  • Patrick Abuya vs Institute of Certified Public Accountants of Kenya (ICPAK) & another
    [2015] eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction over the employment dispute and the respondent's counterclaim

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, "Caroline Mueni Mbithi v Muri Mwaniki & Wamiti Advocates [2021] KEELRC 134 (KLR)", Case Analysis (2021). Cause No 657 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/134/eng@2021-12-17

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