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ELRCDismissedELRC Causes No. E248 of 2021 and E251 of 2021· [2021] KEELRC 1333 (KLR)

Caroline Njeri Ngugi & another v Board of Management Kenya Hospital Association t/a Nairobi Hospital [2021] KEELRC 1333 (KLR)

Employment and Labour Relations Court
9 June 2021
2,518 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court refused to reinstate two dismissed Nairobi Hospital employees early, saying reinstatement is best decided only after a full hearing.

What this practically means

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Executive summary

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Two claimants, formerly employed in the Finance Division (Admissions, Discharges and Transfers) of the Nairobi Hospital, filed consolidated Notices of Motion dated 23rd March 2021 in ELRC Causes E248 and E251 of 2021 seeking interim reinstatement without loss of salary pending full hearing of their unfair termination suits. They alleged they were suspended and dismissed after an email from the Finance Director's office regarding suspected fraud involving CIC Insurance claims, that they went through a disciplinary process between 18th January and 18th March 2021, and that they were never found culpable. The Respondent, through a Replying Affidavit of its Acting Company Secretary, contended the claimants were lawfully dismissed for fraud involving transactions worth Kshs. 217,000/- amounting to gross misconduct, that reinstatement is a final remedy not available at the interlocutory stage, and that no exceptional circumstances justified specific performance of a contract of service. The court held that although reinstatement may in principle be granted at the interlocutory stage, where the employer has afforded the employee the benefits of natural justice before dismissal, the matter should be fully ventilated before reinstatement is ordered. It distinguished the National Bank of Kenya v Samuel Nauru Mutonya authority, which concerned reinstatement after full trial, and held that the balance of convenience militated against interim reinstatement, since reinstatement under Section 49(3) of the Employment Act is available upon a finding of unfair termination and consideration of Section 49(4) factors. The motions were dismissed with costs in the cause. Judgment was delivered by Nzioki Wa Makau, J, at Nairobi on 9th June 2021.

Key legal issues

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01

Whether interim reinstatement should issue pending full hearing

Holding

The applications for interim reinstatement were dismissed; reinstatement is a remedy under Section 49(3) of the Employment Act available upon a finding of unfair termination after weighing the Section 49(4) factors, and the balance of convenience at the interlocutory stage favours withholding it

Reasoning

The court held that although reinstatement may in principle be granted at the interlocutory stage, it is almost axiomatic only where termination occurred without any element of natural justice. Here the employer allegedly took the claimants through a disciplinary process, so the merits should be fully ventilated first. The National Bank of Kenya case involved reinstatement after full trial, not at interlocutory stage, and thus did not assist the applicants.

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02

Whether the balance of convenience favoured interim reinstatement

Holding

The balance of convenience tilted against granting the relief since it can be granted upon full hearing of the suit

Reasoning

The court noted that the merits were yet to be heard and the parties had not unveiled all the facts regarding the claim. The court earlier, on 14th April 2021, had found the balance of convenience favoured withholding the relief as it could be granted upon full hearing, and adhered to that position in the ruling. Damages were also pleaded as an adequate alternative remedy.

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Legal principles established

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  • Reinstatement can be granted either at interlocutory stage or at final judgment, but where the employer afforded the employee the benefits of natural justice before dismissal, the court should allow a fuller ventilation of the matter before ordering reinstatement
  • Interim reinstatement is not appropriate where the balance of convenience favours withholding the relief and reinstatement under Section 49(3) of the Employment Act is contingent on a finding of unfair termination

Court orders

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  1. 1.The Notices of Motion dated 23rd March 2021 in Causes E248 of 2021 and E251 of 2021 seeking interim reinstatement are dismissed
  2. 2.Costs of the applications to be in the cause

Authorities

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Legislation

  • Employment ActSection 49(3)(a), 49(4)(a)-(m), 43, 45, 50
  • Employment and Labour Relations Court Act, 2011Section 12(3)(vii)
  • Evidence ActSection 60
  • Misc. Amendment Act No. 18 of 2014

Cases cited (9)

  • National Bank of Kenya v Samuel Nauru Mutonya
    [2019] eKLR
  • Mathew Kipchumba Koskei v Baringo Teachers Sacco
    [2013] eKLR
  • Onyango Oloo v Attorney General
    [1986-1989] EA 456
  • Mrao Ltd v First American Bank of Kenya Ltd & 2 Others
    [2003] eKLR
  • Allan Pamba v Kenya Hospital Association for and on Behalf of the Nairobi Hospital
    [2020] eKLR
  • Richard Muimo Parsitau v Kajiado County Government & 2 Others
    [2014] eKLR
  • Sosten Kipruto Kerich v Monarch Insurance Co. Ltd
    [2018] eKLR
  • Joab Mehta Oudia v Coffee Development Board of Trustees
    [2014] eKLR
  • Kenya Tea Growers Association & Another v Kenya Plantation and Agricultural Workers Union
    [2018] eKLR
Jurisdiction invoked
Section 12(3)(vii) of the Employment and Labour Relations Court Act, 2011 as amended by Misc. Amendment Act No. 18 of 2014, read with Section 49 of the Employment Act, 2007

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, "Caroline Njeri Ngugi & another v Board of Management Kenya Hospital Association t/a Nairobi Hospital [2021] KEELRC 1333 (KLR)", Case Analysis (2021). ELRC Causes No. E248 of 2021 and E251 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1333/eng@2021-06-09

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