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ELRCPartially AllowedCause No 1822 of 2016· [2021] KEELRC 918 (KLR)

Were v Kenafric Industries Ltd (Cause 1822 of 2016) [2021] KEELRC 918 (KLR)

Employment and Labour Relations Court
13 September 2021
4,077 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer who stays silent after probation ends 'confirms' the employee, and can't then fire them without a fair hearing.

What this practically means

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Executive summary

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The Claimant, first engaged in 2012 as an Online Quality Checker and re-engaged on 5th January 2015 as an Assistant Value Stream Leader on three months' probation (extended by one month to 30th April 2015), sued for unlawful termination after the Respondent declined to confirm her by letter of 1st July 2015 citing poor performance. The court held that, the Respondent having failed to communicate her fate at the close of probation, the Claimant was constructively confirmed on 1st May 2015 and thus entitled to the protections of sections 35, 36, 41, 43 and 45 of the Employment Act. Although the Respondent gave notice under section 35, it failed to substantiate the poor-performance ground (the June 2015 evaluation grading system was never produced) and breached section 41 by giving no show cause or hearing. The termination was therefore declared unfair and unlawful. The court further held that the discharge voucher settling Ksh 9,858 did not bar the claim since the parties understood it covered salary only. The claim for salary in lieu of notice and underpayments was dismissed; the Claimant was awarded leave dues for 2013 (Ksh 19,789) and compensation of eight months' salary (Ksh 193,600), total Ksh 213,389, discounted from twelve months for failure to mitigate. A Certificate of Service, interest at court rates and costs were ordered, subject to statutory deductions. Judgment delivered online on 13th September 2021 with the parties' consent under the Covid-19 directives.

Key legal issues

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01

Status of the employee after expiry of probation without communication

Holding

The Claimant was deemed constructively confirmed on 1st May 2015 when the Respondent failed to communicate her probation status, gaining protections under sections 41, 43 and 45 of the Employment Act

Reasoning

The probation ran to 30th April 2015 after extension. The Respondent did not communicate confirmation or termination by that date. Following Benjamin Nyambati Ondiba v Egerton University, silence at the close of probation results in constructive confirmation. The Claimant therefore ceased to be a probationary employee and could not be terminated under the probation contract.

p. 3
02

Lawfulness of the termination

Holding

Termination was substantively unproven and procedurally flawed; notice under section 35 was given but section 41 procedure was not followed

Reasoning

The ground of poor performance rested on a June 2015 evaluation whose grading system was never filed, so the ground could not be objectively verified under sections 43 and 45. Although notice under section 35 was given and conceded, there was no show cause, no hearing, and no right to be accompanied as required by section 41.

p. 4
03

Effect of the discharge voucher

Holding

The settlement of Ksh 9,858 did not bar the claim because the parties mutually understood it to cover salary only

Reasoning

Applying Thomas De La Rue and Coastal Bottlers, the court evaluated the settlement's import and the parties' knowledge. Both sides understood the payment as covering the Claimant's salary, not compensation for unlawful termination, so the voucher was not a full and final release barring further claims.

p. 6
04

Quantum of compensation

Holding

Eight months' salary awarded instead of twelve due to failure to mitigate

Reasoning

Under section 49 the court must consider relevant factors including mitigation. The Claimant adduced no evidence of efforts to mitigate. Balancing the unfair treatment against the duty to mitigate, the court discounted the award to eight months' gross salary of Ksh 24,200, totalling Ksh 193,600 plus leave dues.

p. 7

Legal principles established

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  • Where an employer remains silent at the close of the agreed probation period, the employee is deemed constructively confirmed
  • A discharge voucher does not per se bar further claims; the court must assess its import and whether it was freely executed with full knowledge
  • The mere existence of a pretrial settlement does not oust the court's jurisdiction to inquire into the lawfulness of a termination

Court orders

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  1. 1.The Respondent's termination of the contract of service between the parties to this action is declared unfair and unlawful
  2. 2.The Claimant is awarded Ksh. 213,389/= in damages
  3. 3.The Respondent to issue the Claimant with a Certificate of Service
  4. 4.The Claimant to be paid interest at court rates on the amount awarded in damages
  5. 5.The sums awarded to be subject to applicable statutory deductions if any
  6. 6.The Claimant awarded leave dues for the year 2013 at the rate of Ksh 19,789/=, her monthly salary then
  7. 7.The Respondent to pay costs of the Claim

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 42(1)
  • Employment Actsections 43 and 45
  • Employment Actsections 35 and 36
  • Employment Actsection 28
  • Employment Actsection 49
  • Constitution of Kenya, 2010articles 24, 41 and 47
  • ELRC Procedure RulesRule 28(3)

Cases cited (6)

  • Benjamin Nyambati Ondiba v Egerton University
    [2014] eKLR
  • Monicah Munira Kibuchi and others vs Mount Kenya University and the Attorney General
    Nairobi Petition number 94 of 2016
  • Thomas De La Rue (K) Ltd v David Opondo Omutelema
    [2013] eKLR
  • Coastal Bottlers Limited v Kimathi Mithika
    [2018] eKLR
  • Trinity Prime Investment Limited v Lion of Kenya Insurance Company Limited
    [2015] eKLR
  • Krystalline Salt Limited vs. Kwekwe Mwakele & 67 others
    [2017]
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Employment and Labour Relations Court under the Employment Act

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, "Were v Kenafric Industries Ltd (Cause 1822 of 2016) [2021] KEELRC 918 (KLR)", Case Analysis (2021). Cause No 1822 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/918/eng@2021-09-13

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