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ELRCPartially AllowedNot stated in the judgment as provided· [2021] KEELRC 1612 (KLR)

Charles Kipkemoi Chebii v National Hospital Insurance Fund Management Board [2021] KEELRC 1612 (KLR)

Employment and Labour Relations Court
20 January 2021
1,938 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled NHIF lawfully suspected an absent worker of desertion but fired him unfairly because the hearing letter omitted his right to bring a companion.

What this practically means

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Executive summary

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The Claimant, a Clerical Officer employed by the National Hospital Insurance Fund Management Board from 1991, sued for wrongful, unlawful and unfair termination of his employment on 12th September 2012 on grounds of desertion of duty. He pleaded that his absence from December 2010 was due to depression following a colleague's death, supported by a medical report from psychiatrist Dr. Omar Aly, and claimed withheld salary, pay in lieu of notice, leave pay, 12 months' compensation, service pay, statutory benefits and a Certificate of Service. The Respondent maintained that the Claimant absconded duty for 133 days without communication, that due process was followed through a show-cause notice, a Staff Advisory Committee hearing, and an appeal to the Management Executive Committee which upheld the termination. The Respondent called no witnesses and filed no submissions. The court held that although the Claimant genuinely suffered depression, a medical report excusing absence on mental illness grounds requires the concurrence of two or more doctors, and the Claimant failed to effectively explain his absence, so there was basis for the dismissal. However, the hearing notice omitted the Section 41 Employment Act requirement to notify the employee of the right to be accompanied by a shop steward or colleague, rendering the process flawed. The court entered judgment for the Claimant for half salary from December 2010 to 12th September 2012, three months' salary as compensation for unlawful termination, costs, a Certificate of Service, and conditional interest, but declined the 12 months' compensation and service pay claims.

Key legal issues

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01

Whether the dismissal was for a valid reason

Holding

The dismissal was substantively justified - the Claimant absconded for 133 days and failed to explain his absence to the satisfaction of the disciplinary bodies, and his depression did not excuse his failure to provide a two-doctor medical report

Reasoning

The court accepted the Claimant suffered depression as diagnosed by Dr. Omar J. Aly, a suitably qualified psychiatrist whose competence was not challenged. However, medical reports excusing absence on mental illness grounds require concurrence of two or more doctors to eliminate bias or varied interpretation. The Claimant was unable to effectively explain his lengthy absence, so the substantive reason for dismissal stood.

p. 3
02

Whether the dismissal followed a fair procedure under Section 41 of the Employment Act

Holding

The procedure was flawed because the hearing notice did not inform the Claimant of his right to be accompanied by a shop steward or colleague

Reasoning

Although the Claimant had a valid reason against him, the letter summoning him to the Staff Advisory Committee omitted the critical statutory words of Section 41 of the Employment Act requiring that an employee be informed of the right to be accompanied by a fellow employee or shop steward. This rendered the process procedurally unfair and vitiated the dismissal.

p. 3
03

Whether the Claimant was entitled to withheld salary

Holding

The Claimant was entitled to half salary for the period he was under the cloud of suspicion, from December 2010 to 12th September 2012

Reasoning

Because the dismissal process was flawed, the court found the Claimant should have received half salary during the period his case was pending and he was under the cloud of suspicion, covering December 2010 up to 12th September 2012 when his appeal was dismissed.

p. 3
04

Whether the Claimant proved entitlement to service pay

Holding

The claim for service pay failed for lack of proof that NSSF dues were not remitted

Reasoning

The Claimant alleged he was entitled to service pay because he was not an NSSF member, but he provided no NSSF statements and adduced no evidence at the hearing that the Respondent failed to remit his dues. The claim therefore failed on the burden of proof.

p. 3

Legal principles established

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  • A report excusing absence on account of mental illness must be under the hand of two doctors, as medical board assessments require the concurrence of two or more doctors
  • An employer who summons an employee to a disciplinary hearing must inform the employee of the right to be accompanied by a shop steward or colleague as contemplated by Section 41 of the Employment Act
  • An employee dismissed after a flawed process, while under the cloud of suspicion, is entitled to half salary for the period of suspension of salary

Court orders

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  1. 1.Half salary from December 2010 to 12th September 2012
  2. 2.3 month's salary as compensation for unlawful termination
  3. 3.Costs of the suit to the Claimant
  4. 4.Certificate of Service to be issued to the Claimant
  5. 5.Interest at court rates on the awards of half salary and compensation from date of judgment till payment in full, provided the Claimant clears with the Respondent within 14 days

Authorities

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Legislation

  • Constitution of KenyaArticle 41
  • Employment ActSections 35, 35(5), 41, 45(4), 45(5), 49(1), 51

Cases cited (4)

  • Alphonce Maghanga Mwachanya v Operation 680 Limited
    [2013] eKLR
  • Christian Samba Obath v Fossil Fuels Limited
    [2016] eKLR
  • Lydia Kaguru Makathimo v Consolidated Bank of Kenya Limited
    [2019] eKLR
  • Elijah Kipkoros Tonui v Ngara Opticians T/A Bright Eyes Limited
    [2014] eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction of the Employment and Labour Relations Court (claim for wrongful, unlawful and unfair termination under the Employment Act and Article 41 of the Constitution)

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, "Charles Kipkemoi Chebii v National Hospital Insurance Fund Management Board [2021] KEELRC 1612 (KLR)", Case Analysis (2021). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1612/eng@2021-01-20

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