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ELRCPartially AllowedCause No 1256 of 2017· [2021] KEELRC 183 (KLR)

Ethan Ngigi Gathege v Nairobi Institute of Business Studies Limited [2021] KEELRC 183 (KLR)

Employment and Labour Relations Court
15 December 2021
3,377 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled an employer's vague suspension letter and lack of a fair hearing made the dismissal unfair, awarding the employee Kshs.159,035.68.

What this practically means

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Executive summary

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The Claimant, employed from 26th August 2011 and last serving as a Procurement Officer, was summarily dismissed on 24th April 2017 on the ground of absenteeism/desertion of duty. He had been suspended for two weeks by a letter dated 6th March 2017 which required him to await further communication from the Human Resource; no such communication was ever issued. After lodging a complaint with the Labour Office, he was issued with a summary dismissal letter. The Respondent contended the dismissal was lawful because the Claimant failed to report back on 21st March 2017 as directed. The Court framed two issues: whether the summary dismissal was lawful, and whether the Claimant was entitled to the reliefs sought. Applying Sections 35, 41, 43, 45 and 47(5) of the Employment Act, the Court found the reason for dismissal neither valid nor fair, holding that the suspension letter was ambiguous and amenable to different interpretations, and that the Respondent made no attempt to contact the Claimant before dismissing him over a month later. Procedurally, the Respondent failed to prove compliance with Section 41, producing no evidence of notification, hearing invitation or minutes. The religious discrimination claim, raised for the first time in submissions, was disallowed as unpleaded. The Court awarded one month's salary in lieu of notice (Kshs.30,500), compensation equivalent of four months' salary (Kshs.122,000) and Kshs.6,535.68 for six days worked in March 2017, totalling Kshs.159,035.68 with costs and interest at court rates, while disallowing the leave and general damages claims for want of evidence.

Key legal issues

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01

Validity of the reason for summary dismissal (desertion of duty)

Holding

The reason was neither valid nor fair; the ambiguous suspension letter made return conditional on HR communication, and the employer made no attempt to contact the Claimant before dismissing him a month later.

Reasoning

The suspension letter limited suspension to two weeks but also required the Claimant to await further communication from the Human Resource. RW1 conceded the wording could have been better and that no communication was made within the two weeks. The letter was amenable to different interpretations, and the Respondent led no evidence of attempts to contact the Claimant after the two weeks lapsed before dismissing him for desertion over a month later.

p. 5
02

Procedural fairness under Section 41 of the Employment Act

Holding

The Respondent failed to prove compliance with Section 41; there was no evidence of notification of transgressions, invitation to a disciplinary hearing, or minutes.

Reasoning

The Claimant testified he was never taken through a disciplinary hearing. RW1 asserted a hearing occurred but produced no invitation or minutes and contradicted himself on whether the Claimant was invited in writing. Guided by Radido J. in Loice Otieno v Kenya Commercial Bank, the employer must demonstrate it explained the reasons, allowed a representative, and heard the employee's explanations; none was proved.

p. 5
03

Entitlement to reliefs

Holding

Notice pay, four months' compensation and salary for days worked in March 2017 awarded; leave, general damages and unpleaded discrimination claims disallowed.

Reasoning

Having found the dismissal unfair, the Court awarded one month's notice pay under Section 35, compensation equivalent of four months' salary considering the roughly 5 years 8 months of service, two prior warning letters and the anxiety suffered, and Kshs.6,535.68 for six days worked in March 2017. Leave and general damages failed for want of evidence, and the discrimination claim failed as it was not pleaded.

p. 5

Legal principles established

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  • A termination of employment is unfair unless the employer proves a valid and fair reason and a fair procedure (Section 45(2), Employment Act)
  • An ambiguous suspension letter cannot found a dismissal for desertion where the employee awaited the promised communication
  • Claims not pleaded cannot be introduced or prosecuted through submissions

Court orders

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  1. 1.Judgment entered for the Claimant for Kshs.159,035.68 with costs, comprising one month's salary in lieu of notice (Kshs.30,500), compensation equivalent of four months' salary (Kshs.122,000) and salary for 6 days worked in March 2017 (Kshs.6,535.68)
  2. 2.Interest at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Employment ActSections 35, 40, 41, 43, 44, 45(2), 47(5)
  • Constitution of Kenya, 2010Articles 27, 32, 159(2)(d), 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (9)

  • Kenfreight (EA) Limited v Benson K. Nguti
    [2016] eKLR
  • VMK v Catholic University of Eastern Africa
    [2013] eKLR
  • Orix Oil (Kenya) Limited v Paul Kabeu & 2 Others
    [2014] eKLR
  • Magare Gikenyi v County Government of Nakuru & 4 Others
    [2020] eKLR
  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • Samsung Electronics East Africa Limited v KM
    [2017] eKLR
  • Standard Group Limited v Jenny Luesby
    [2018] eKLR
  • CMC Aviation Limited v Mohammed Noor
    [2015] eKLR
  • Loice Otieno v Kenya Commercial Bank Ltd
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment 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, "Ethan Ngigi Gathege v Nairobi Institute of Business Studies Limited [2021] KEELRC 183 (KLR)", Case Analysis (2021). Cause No 1256 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/183/eng@2021-12-15

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