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ELRCPartially AllowedELRC Cause (Nairobi), filed 22nd January 2015· [2021] KEELRC 1355 (KLR)

Tom Otieno Midianga v Wilham Kenya [2021] KEELRC 1355 (KLR)

Employment and Labour Relations Court
30 June 2021
3,790 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a long-serving employee was fired unfairly without a hearing, awarding him a full year's salary plus unpaid Sunday wages.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 20th March 1990 as Airport Supervisor and later Export Supervisor, was suspended by letter dated 29th May 2013 over a failed night delivery of fresh produce for export on 19th May 2013, and his employment was terminated on 24th June 2013. He claimed a declaration that the termination was unfair and wrongful, 12 months' salary as compensation, and Kshs. 2,047,574/- being unpaid wages for Sundays worked between March 1990 and May 2013. The Respondent admitted the employment relationship but asserted the Claimant had rest days per a muster roll, that he was heard before termination, had a history of negligence evidenced by show cause letters, and signed a discharge voucher; it also raised a preliminary objection that the Sunday wages claim was time barred as a continuing injury under Section 90 of the Employment Act. The court found the delivery failure was caused by the Respondent's poorly serviced vehicle rather than the Claimant's fault; the prior show cause letters were spent and could not found the dismissal; and the Claimant was terminated without a hearing, contrary to natural justice and Section 41 of the Employment Act. No discharge voucher was produced, so no discharge or waiver was proved. However, the claim for Sundays worked was treated as a continuing injury capped at one year, allowing only 53 Sundays between June 2012 and June 2013. The court declared the termination unfair and wrongful and awarded maximum compensation of 12 months (Kshs. 539,028/-), Kshs. 119,035.35 for the 53 Sundays, costs of the suit, and interest on the two awards at court rates from filing until payment in full.

Key legal issues

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01

Whether the termination was substantively and procedurally fair

Holding

The termination was unfair and unlawful; the Claimant was dismissed for no fault of his own and without a hearing

Reasoning

The mechanical failure of the Respondent's poorly serviced vehicle caused the failed delivery, not the Claimant's negligence. The Respondent relied on spent show cause letters, which cannot found a fresh disciplinary action, and did not afford the Claimant a hearing before termination, breaching natural justice and Section 41 of the Employment Act. The employer failed to justify the dismissal under Sections 43 and 45.

p. 3
02

Whether the discharge voucher barred the claim

Holding

No discharge voucher was produced; the Respondent failed to prove a discharge or waiver, so the claim survives

Reasoning

The court found that no discharge voucher was produced by either party, only the termination letter listing the heads of terminal dues. Since the Respondent failed to prove there was a discharge or waiver, the Claimant remained entitled to recover for the unfair and unlawful termination.

p. 3
03

Whether the claim for unpaid Sunday wages was time barred as a continuing injury

Holding

Partially: claims for Sundays before June 2012 were time barred; only 53 Sundays within the year preceding termination were recoverable

Reasoning

The court accepted the Respondent's submission that unpaid wages for Sundays worked constituted a continuing injury capped at one year under Section 90 of the Employment Act. The injury ceased at termination on 24th June 2013, so only Sundays from June 2012 to June 2013 (53 days) were recoverable.

p. 4
04

What compensation is due for the unfair termination

Holding

Maximum compensation of 12 months' gross salary (Kshs. 539,028/-) was awarded given 23 years of service and dismissal without fault

Reasoning

The court held that since the dismissal was on account of no fault on the part of the employee, maximum compensation under Section 49 of the Employment Act was sufficient recompense, taking into account the Claimant's long service of over 23 years.

p. 4

Legal principles established

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  • Once a distinct disciplinary action is taken against an employee, the allegations forming its subject matter cannot be made the subject of future disciplinary action; the offence becomes a spent cartridge
  • An employer must afford an employee a hearing before termination; termination without a hearing contrary to natural justice and Section 41 of the Employment Act is unfair
  • Where a discharge or waiver is not proved, the employee remains entitled to recover for unfair and unlawful termination
  • Claims founded on a continuing injury are capped at one year from the cessation of the injury

Court orders

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  1. 1.A declaration that the termination of the Claimant's services on 24th June 2013 was unfair and wrongful
  2. 2.Compensation to the maximum 12 months – Kshs. 539,028/-
  3. 3.Kshs. 119,035.35 (44,919/30x1.5x53 Sundays) for Sundays worked
  4. 4.Costs of the suit
  5. 5.Interest on the compensation and the Sundays award at court rates from date of filing suit till payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 49(c)
  • Employment Act, 2007Section 90
  • Limitation of Actions Act, Cap. 22Section 23(3)
  • Constitution of Kenya, 2010Articles 41 and 47
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 21

Cases cited (14)

  • Peter Kamau Mwaura & Another v National Bank of Kenya
    [2020] eKLR
  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • Kiungani Farmers Co. Ltd v Mbugua
    [1984] KLR 476
  • Town Council of Awendo v Nelson Oduor Onyango & 13 Others
    [2013] eKLR
  • Gladys Wambui Mwai v Highland Plants Limited
    [2019] eKLR
  • John Mutia Maluki v Schenker Limited
    [2018] eKLR
  • Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd
    [1969] EA 696
  • Ephraim Gachigua Mwangi v Teachers Service Commission & Board of Management Thogoto Teachers College
    [2018] eKLR
  • Coastal Bottlers Limited v Kimathi Mithika
    [2018] eKLR
  • Trinity Prime Investment Limited vs. Lion of Kenya insurance Company Limited
    [2015] eKLR
  • Thomas De La Rue (K) Limited v David Opondo Omutelema
    [2013] eKLR
  • Dennis Kipngetich Koech v MKPPA Kenya Limited
    [2018] eKLR
  • Geoffrey Nyandusi Oeri v Security Guards Services Limited & Another
    [2015] eKLR
  • Banking Insurance and Finance Union (Kenya) vs. Kenya Commercial Bank Limited
    [2015] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 and the Employment and Labour Relations Court (Procedure) Rules, 2016

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Tom Otieno Midianga v Wilham Kenya [2021] KEELRC 1355 (KLR)", Case Analysis (2021). ELRC Cause (Nairobi), filed 22nd January 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1355/eng@2021-06-30

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