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ELRCPartially AllowedCause No 461 of 2016· [2021] KEELRC 275 (KLR)

Enoch Thiong’o Kibathi v Directline Assurance Company Limited [2021] KEELRC 275 (KLR)

Employment and Labour Relations Court
8 December 2021
5,792 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled an employee's forced 'resignation' was actually an unfair termination, awarding damages because the disciplinary process was rushed and unfair.

What this practically means

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Executive summary

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The Claimant, employed as an Assistant Records Clerk, sued the Respondent alleging unfair and unlawful termination on 21st October 2014, claiming damages for breach of contract (27 months' anticipatory earnings), 12 months' salary for unfair termination, unpaid house allowance, gratuity/service pay, general damages for discrimination, interest and costs. The Respondent maintained that the Claimant resigned voluntarily after a notice to show cause. The Court framed four issues: duration of employment, whether the Claimant resigned or was terminated, entitlement to complain of unfair termination, and reliefs. On the first issue, the Court found employment ran from 1st February 2014 under a 3-year fixed term contract, rejecting the Claimant's claim of employment from April 2011 under Kairu & McCourt Advocates. On Section 45(3) of the Employment Act, the Court followed Samuel G. Momanyi v Attorney General, which declared the 13-month service threshold unconstitutional, and held the Claimant could complain of unfair termination despite only 8 months' service. On the mode of separation, the Court found the Claimant was terminated; the Respondent's pleadings admitted summary dismissal and a disciplinary hearing, and its document list initially included the termination letter. The disciplinary hearing was held a sham: the Claimant had barely an hour to respond, was denied witnesses and was not informed of his right to representation. The Court awarded the equivalent of two months' salary (Kshs.60,000) under Section 49, considering his short service, completion of probation, absence of prior warnings and his contribution to the termination. Claims for anticipatory earnings, house allowance, gratuity and discrimination were all declined, the last two for want of evidence or contractual basis. Judgment was entered for the Claimant for Kshs.60,000 with costs and interest at court rates from the date of judgment until payment in full.

Key legal issues

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01

Whether Section 45(3) of the Employment Act (13-month service threshold) bars the claim

Holding

The Court followed the High Court decision in Samuel G. Momanyi v Attorney General declaring Section 45(3) unconstitutional and held the Claimant entitled to complain of unfair termination despite serving only 8 months

Reasoning

The Court adopted Lenaola J's finding that the 13-month threshold in Section 45(3) is discriminatory and inconsistent with Articles 28, 41(1), 47, 48 and 50(1) of the Constitution. The Court of Appeal in Samuel G. Momanyi v SDV Transami endorsed that holding for claims filed after 18th May 2012, and this claim was filed in 2016.

p. 4
02

Whether the Claimant resigned or was terminated

Holding

The Court found the Claimant was terminated; the alleged resignation was a camouflage for the termination

Reasoning

The Respondent's pleadings admitted summary dismissal and a disciplinary hearing, and its first list of documents included the termination letter, later omitted. The Claimant's evidence that he was ordered to return the termination letter and write a backdated resignation was uncontroverted. Applying the rule that parties are bound by pleadings, the Court preferred the Claimant's version.

p. 6
03

Whether the termination was procedurally fair under Section 41 of the Employment Act

Holding

The disciplinary process was a sham; the termination was procedurally unfair

Reasoning

The show cause letter gave the Claimant only until close of business the same day to respond; he was not informed of his right to a colleague or union representative; his request to call witnesses was declined; and the Respondent failed to avail the disciplinary proceedings record or evidence that it considered his representations. The Respondent may have had a valid reason but used a flawed procedure which vitiated the termination.

p. 7
04

Quantum of compensation for unfair termination under Section 49 of the Employment Act

Holding

Equivalent of two months' salary (Kshs.60,000) awarded as fair compensation

Reasoning

The Court considered Section 49(4) factors: the Claimant served only 8 months and wished to continue; he had just completed probation and training; there was no evidence of a previous warning; and the Claimant contributed to his termination. These factors justified a modest award of two months' salary rather than the 12 months claimed.

p. 8

Legal principles established

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  • An employer who takes an employee through a disciplinary process mechanically so as to appear to have complied with the law has not complied with Section 41 of the Employment Act
  • Parties are bound by their pleadings; evidence at variance with pleadings must be disregarded

Court orders

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  1. 1.Judgment entered for the Claimant in the sum of Kshs.60,000
  2. 2.Claimant awarded costs of the suit
  3. 3.Interest at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Employment ActSections 31(1), 31(2), 35, 40(1)(g), 41, 43, 43(1), 45, 45(2)(c), 45(3), 47(5), 49, 49(1)(c), 49(4)
  • Human Resource Management Professional ActNot specified
  • Constitution of KenyaArticles 28, 41(1), 47, 48, 50(1), 159(2)(d)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (21)

  • Independent Electoral and Boundaries Commission & Another v Stephen Mutinda Mule & 3 Others
    [2014] eKLR
  • Adetoun Oladeji (NIG) Ltd v Nigeria Breweries PLC
    S.C. 91/2002
  • Raila Odinga & Another v IEBC & 2 Others
    [2017] eKLR
  • CMC Aviation Ltd v Cruisair Ltd (No. 1)
    [1976-80] KLR
  • Margaret Lihabi Ngaira v Winfrida Ngumu Charles
    [2016] eKLR
  • Jared O. Otete v Factory Guards Limited
    [2014] eKLR
  • Donas Lombom & 7 others v Civicon Limited
    [2016] eKLR
  • Andrew Mwaniki Gachoba v National Oil Corporation of Kenya
    [2018] eKLR
  • Elijah Kipkoros Tonou v Ngara Opticians t/a Bright Eyes Ltd
    [2014] eKLR
  • Samuel G. Momanyi v Attorney General & another
    [2012] eKLR
  • Linus Barasa Odhaimbo v Wells Fargo Ltd
    [2013] eKLR
  • Samuel G. Momanyi v SDV Transami Kenya Ltd
    [2017] eKLR
  • CMC Aviation Limited v Mohammed Noor
    [2015] eKLR
  • Standard Group Limited v Jenny Luesby
    [2015] eKLR
  • Kenafric Industries Limited v John Gitonga Njeru
    [2016] eKLR
  • Naima Khamis v Oxford University (E.A) Limited
    [2017] eKLR
  • Loice Otieno v Kenya Commercial Bank
    [2013] eKLR
  • Hema Hospital v Wilson Makongo Marwa
    [2015] eKLR
  • D. K. Njagi Marete v Teachers Service Commission
    [2020] eKLR
  • Elizabeth Wakanyi Kibe v Telkom Kenya Limited
    [2014] eKLR
  • Nixon Mandala Malongo v Clifford Okello Rachuonyo & Another
    [2014] 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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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Enoch Thiong’o Kibathi v Directline Assurance Company Limited [2021] KEELRC 275 (KLR)", Case Analysis (2021). Cause No 461 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/275/eng@2021-12-08

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