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ELRCPartially AllowedCause No 99 of 2016· [2021] KEELRC 467 (KLR)

Vincent Masinde Munuku BOB Morgan Services Limited [2021] KEELRC 467 (KLR)

Employment and Labour Relations Court
18 November 2021
4,036 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that even a valid reason for firing an employee is not enough if the employer skips proper disciplinary procedures, and awarded modest compensation.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 12th September 1996 to 11th September 2015 (appointed on permanent terms in 2001), was summarily dismissed for posting derogatory, defamatory and unsubstantiated material about the Respondent and its senior management on a Facebook page called Bravo Mike Forum between January and August 2015, including allegations of ethnic-based promotions and a false claim that a manager was hospitalised. He claimed notice pay, unpaid leave for 19 years, service pay, five months' salary compensation and general damages for wrongful dismissal. The Respondent defended the dismissal as substantively and procedurally fair, relying on Section 44(d) of the Employment Act, and said terminal dues were paid. The Court framed two issues: whether the termination was unfair and whether the Claimant was entitled to the reliefs sought. It found the Respondent had a valid and genuine reason for dismissal under Section 43(2), as the posts were derogatory and the Claimant led no evidence explaining them. However, the procedure fell foul of Section 41: the Claimant received no notice of the meeting or its agenda, no written allegations, and was not informed of his right to be accompanied by a representative, so the termination was procedurally unfair. The Court awarded one month's notice pay (Kshs.20,545.65) and compensation of two months' pay (Kshs.41,091.30) under Section 49(1)(c), considering his 19 years' service, clean record, failure to appeal and substantial contribution to his dismissal. Claims for accumulated leave, service pay (barred by NSSF membership under Section 35(6)) and general damages were declined. Total judgment: Kshs.61,636.95, plus costs and interest from the date of judgment.

Key legal issues

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01

Whether the reason for termination was valid

Holding

The reason was valid - the Respondent genuinely believed the Claimant's Facebook posts were injurious to its reputation and that of senior management

Reasoning

The Court applied Section 43(2) of the Employment Act, under which the reason for termination is the matter the employer genuinely believed to exist at the time. The Claimant did not dispute making the posts on the Bravo Mike Forum, the posts made extensive derogatory reference to the Respondent and its management, and he led no evidence explaining the postings or showing he had raised grievances internally.

p. 5
02

Whether the procedure for termination was fair under Section 41 of the Employment Act

Holding

The procedure was unfair; the termination was procedurally unfair

Reasoning

Although the Claimant attended a disciplinary meeting, he received no notice of the meeting or its agenda, no written allegations were set out, and he was not informed of his right to be accompanied by a fellow employee or shop floor representative. The suspension letter made no reference to a hearing or representation rights, and the minutes did not capture his representations other than an apology.

p. 6
03

Whether the Claimant was entitled to the reliefs sought

Holding

Partially - one month's notice pay and two months' compensation awarded; leave, service pay and general damages declined

Reasoning

The Court held the dismissal procedurally unfair and awarded compensation under Section 49(1)(c), considering the 19 years of service, clean disciplinary record, absence of appeal, and the Claimant's substantial contribution to his termination. Notice pay was capped at the contractual one month; the leave claim failed on the evidence; service pay was barred by NSSF membership under Section 35(6); general damages were unproved.

p. 6

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
  • An employer must notify the employee of specific allegations, invite him to a disciplinary hearing and inform him of the right to be accompanied by a representative, as required by Section 41 of the Employment Act
  • The reason for termination is assessed against what the employer genuinely believed to exist at the time of termination
  • Freedom of expression must be exercised within the limits of the law

Court orders

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  1. 1.Judgment entered for the Claimant for the sum of Kshs.61,636.95
  2. 2.One month's salary in lieu of notice of Kshs.20,545.65 awarded
  3. 3.Compensation equivalent to two months' pay of Kshs.41,091.30 under Section 49(1)(c) of the Employment Act
  4. 4.The Claimant awarded costs of the suit
  5. 5.Interest at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 5
  • Employment Act, 2007Section 35(6)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43(2)
  • Employment Act, 2007Section 44(d)
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 49(1)(c)
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (13)

  • Derick Pius Raunda Okari v Kenya Kazi Security Services Ltd
    [2016] eKLR
  • Samsung Electronics East Africa Ltd v K. M.
    [2017] eKLR
  • Mary Chemweno Kiptui v Kenya Pipeline Company Limited
    [2014] eKLR
  • William Kiaritha Gacheru v East African Packaging Industries Ltd
    [2016] eKLR
  • Everlyn Lynn Kagendo v Statpack Industries Limited
    [2013] eKLR
  • Josphat Ngigi Ndegwa v Equity Bank Limited
    [2013] eKLR
  • George Musamali v G42 Security Services Kenya Ltd
    [2016] eKLR
  • Jeremiah Ngige Mungai v Equity Bank Ltd
    [2015] eKLR
  • Anthony Odhiambo Ogola & another v Kenya School of Government (Formerly Kenya Institute of administration)
    [2015] eKLR
  • Hassanath Wanjiku v Vanela House of Coffees
    [2018] eKLR
  • Naima Khamis v Oxford University Press (E.A) Ltd
    [2017] eKLR
  • Kenafric Industries Limited v John Gitonga Njeru
    [2016] eKLR
  • Loice Otieno v Kenya Commercial Bank Ltd
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Sections 41, 43, 44, 45 and 49)

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, "Vincent Masinde Munuku BOB Morgan Services Limited [2021] KEELRC 467 (KLR)", Case Analysis (2021). Cause No 99 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/467/eng@2021-11-18

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