Alvine Obuya Odima v One Acre Fund [2021] KEELRC 255 (KLR)
The bottom line
#A Kenyan court awarded a dismissed manager three months' salary because his employer skipped a mandatory step before firing him.
What this practically means
#Executive summary
#Key legal issues
#Whether the reasons for dismissal were valid
The three reasons - taking 30 chairs without permission, failure to supervise tank cleaning, and failure to verify the seat consignment - were valid reasons related to the employee's conduct, capacity and the employer's operational requirements
The Claimant admitted taking company chairs for a personal function without written permission and called no witness to prove the alleged norm. He admitted he did not supervise the tank cleaning and received no report although the plumber was paid. He confirmed he did not verify the seat consignment before agreeing to the quotation. These established valid grounds under section 45 of the Employment Act.
Whether the procedure for dismissal was fair
The procedure was unlawful and unfair because the show-cause letter and disciplinary proceedings did not inform the Claimant of, or accord him, the right to be accompanied by a fellow employee or union representative as required by section 41(1)
The Respondent's show-cause letter dated 13th June 2017 did not state the Claimant's right to accompaniment, the issue was not raised in the demand letter, and the disciplinary record did not disclose compliance. Following the Court of Appeal's criteria in the Postal Corporation case, the process did not muster procedural fairness, rendering the dismissal unfair despite valid reasons.
What remedy is payable
Compensatory damages of 3 months' gross salary (Kshs. 98,373) were awarded, the court treating Kshs. 32,791 as the gross monthly salary and taking into account the employee's contribution to the dismissal and payment of outstanding dues
Section 49 caps damages at 12 months' gross salary. The Claimant did not attach a payslip and the Respondent disputed the salary figure, but the court adopted Kshs. 32,791 from his witness statement. Given his contribution to the dismissal and payment of dues, 3 months' salary was found adequate, with interest and costs.
Legal principles established
#- Section 41(1) of the Employment Act is mandatory: before termination an employer must explain the reasons to the employee and offer the employee the presence of another employee or shop floor union representative of his choice
- Where a show-cause letter and disciplinary proceedings do not disclose or confer the right to be accompanied, the dismissal procedure fails the test of procedural fairness under section 41
Court orders
#- 1.Judgment entered for the Claimant against the Respondent for compensatory damages of 3 months' gross salary at Kshs. 32,791.00 per month, total Kshs. 98,373, subject to statutory deductions
- 2.Interest on the award at court rates from the date of judgment until payment in full
- 3.Costs of the suit to be borne by the Respondent
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Sections 41, 45 and 49 applied)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Kajuju v Trustees of the Kenya Railways Staff Retirement Benefits Scheme (Cause E957 of 2021) [2024] KEELRC 1935 (KLR)[2024] KEELRC 1935 (KLR)18 Jul 2024
Cite this brief
#Cite this brief
Caselaw, "Alvine Obuya Odima v One Acre Fund [2021] KEELRC 255 (KLR)", Case Analysis (2021). ELR Cause No. 29 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/255/eng@2021-12-08
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.