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ELRCPartially AllowedNot stated in the judgment as provided· [2021] KEELRC 608 (KLR)

Yaron Gureviuch v Selecta Kenya Gmbh & Co Kg [2021] KEELRC 608 (KLR)

Employment and Labour Relations Court
29 October 2021
3,994 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 a manager's dismissal unfair because the company gave no reason, held no hearing, and tried to punish him after employment had already ended.

What this practically means

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Executive summary

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The claimant, a foreign national employed by the respondent as General Manager from 15.9.2016, was served with a six-month termination notice on 27.3.2020, directed to hand over company property and leave immediately, with salary offered in lieu of notice. Only two months' salary was paid. On 2.6.2020 he was served with a show cause letter over alleged 2019 misconduct (burning company documents and a relationship with a female employee), and on 15.6.2020 he was summarily dismissed and his residential tenancy terminated. He sued seeking a declaration of unfair termination, terminal dues, twelve months' salary under section 49(1)(c) of the Employment Act, a Certificate of Service, costs and interest. The respondent asserted the dismissal was for gross misconduct and refusal to obey the CEO. The court framed three issues: fairness of the 27.3.2020 termination, validity of the 15.6.2020 dismissal, and reliefs. It held the termination letter was silent on reasons and no hearing was accorded; the alleged misconduct was unproven and section 41's mandatory procedure was not followed, so the termination was unfair and unlawful under section 45. The second dismissal was declared null and void as no employment relationship subsisted by then. The court awarded four months' outstanding notice pay (€28,400), six months' compensation (€42,600), Kshs 750,000 house allowance, €4,260 for 18 leave days and a €13,732 bonus, with a Certificate of Service, costs and interest from filing suit, subject to statutory deductions. Other monetary claims were declined as benefits tied to actual performance of the contract.

Key legal issues

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01

Whether the termination of 27.3.2020 was substantively and procedurally unfair

Holding

Termination was unfair and unlawful - no valid and fair reason was proved and no fair hearing was accorded

Reasoning

The termination letter was silent on the reason for dismissal and no hearing was shown. The respondent failed to prove the alleged relationship with Anne Obura or that the CEO's command to dismiss her was lawful. Communication of dismissal through juniors was humiliating, and section 41's mandatory explanation-and-hearing procedure was not followed despite payment in lieu of notice.

p. 4
02

Whether the summary dismissal of 15.6.2020 was null and void

Holding

It was null and void because the employment relationship had already ended on 27.3.2020

Reasoning

The first termination took effect immediately since salary was paid in lieu of notice and the claimant was directed to hand over and exit immediately. With the contract at an end, there was no legal or contractual basis to discipline or punish the claimant. The court followed Kennedy Obala Oaga v Kenya Ports Authority where a post-resignation summary dismissal was declared null and void.

p. 5
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What reliefs the claimant merits

Holding

Four months' notice pay shortfall, six months' compensation, house allowance, leave days, bonus and a Certificate of Service granted; other monetary claims declined

Reasoning

Only two of six months' notice pay was paid, so four months were awarded. Six months' compensation was granted considering three years of high performance, non-contribution to dismissal and lack of subsequent employment. House allowance was allowed as the respondent stopped rent payments without proof of further payment; leave and the declared bonus were uncontradicted.

p. 5

Legal principles established

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  • Termination is unfair under section 45 of the Employment Act where the employer fails to prove valid and fair reasons and a fair procedure
  • Payment of salary in lieu of notice does not absolve an employer from complying with the mandatory hearing procedure in section 41
  • Disciplinary proceedings and summary dismissal after the employment relationship has ended are null and void

Court orders

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  1. 1.Declaration that the dismissal of the claimant was unfair and unlawful
  2. 2.Declaration that the purported disciplinary proceedings of 2.6.2020 and the summary dismissal of 15.6.2020 were null and void
  3. 3.Award of the outstanding 4 months' salary in lieu of notice being €7100 x 4 = €28,400
  4. 4.Award of 6 months' gross salary as compensation for unfair termination being €7100 x 6 = €42,600
  5. 5.Award of 3 months' house allowance of Kshs 750,000 (Kshs 250,000 x 3)
  6. 6.Award of 18 leave days' pay being 18 x €7100/30 = €4,260
  7. 7.Award of bonus of €13,732 declared by the CEO on 9.3.2020
  8. 8.Issuance of a Certificate of Service pursuant to Section 51 of the Employment Act
  9. 9.Total award of €88,992 plus Kshs 750,000, subject to statutory deductions
  10. 10.Costs of the suit to the claimant plus interest at court rates from the date of filing suit

Authorities

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Legislation

  • Employment Actsection 49(1)(c)
  • Employment Actsections 41, 43 and 45
  • Employment Actsection 49(1)
  • Employment Actsection 51
  • ELRC Procedure RulesRule 28(3)

Cases cited (5)

  • Anthony Mkala Chitavi v Malindi Water & Sewerage company Ltd
    [2013] eKLR
  • Mary Chemweno Kiptui v Kenya Pipeline Company
    [2014] eKLR
  • Benson Muraguri Maina v Kassam & Bros Co Ltd
    [2016] eKLR
  • Kenfreight (EA) Limited V. Benson K. Nguti
    [2016] eKLR
  • Kennedy Obala Oaga v Kenya ports authority
    [2018] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 41, 43, 45, 49 and 51 relied upon)

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, "Yaron Gureviuch v Selecta Kenya Gmbh & Co Kg [2021] KEELRC 608 (KLR)", Case Analysis (2021). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/608/eng@2021-10-29

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