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ELRCDismissedNot stated in the judgment (Memorandum of Claim dated 31st January 2019, filed 14th February 2019)· [2021] KEELRC 1750 (KLR)

Shariffu Mike Omondi v Ranfer Teas (Kenya) Limited [2021] KEELRC 1750 (KLR)

Employment and Labour Relations Court
13 May 2021
LNLinnet Ndolo
2,989 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that a senior manager who fails to raise red flags over a costly business mistake cannot claim unfair dismissal.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 18th August 2001 and rising to the position of Tea Manager, sued over the termination of his employment on 13th December 2018. The termination followed the rejection by the Respondent's premier Egyptian customer, El Arosa Tea, of a consignment of tea (STD 1522) as inferior, resulting in a loss of USD 76,032 and the loss of the customer. The Claimant blamed the Respondent's Trading Manager, Chandu, for approving the wrong grade and failing to send a pre-shipment sample, and alleged the termination was discriminatory and used him as a scapegoat. He sought loss of future earnings, leave pay for 16 years, 12 months' salary in compensation, a certificate of service and costs. The Respondent maintained that the Claimant, who was responsible for tea purchasing, grading, blending and testing, negligently shipped inferior tea and failed to send advance samples, and that the termination followed a fair disciplinary process with terminal dues paid. The Court framed two issues: whether the termination was lawful and fair, and whether remedies were due. Applying section 43 of the Employment Act and the reasonable responses test from Court of Appeal authority, the Court found the Claimant, despite knowing of the quality problem, failed to escalate his concerns and owed his employer a direct duty of care. Procedural fairness under section 41 was met. The termination was held lawful and fair, the compensation claim was disallowed, the remaining claims were abandoned at trial, and the entire claim was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether the termination of the Claimant's employment was lawful and fair

Holding

The termination was lawful and fair; the employer had a valid reason for termination

Reasoning

The Court found that delivery of order number 81 of 2018 to El Arosa was unsatisfactory and the customer rejected the consignment. The Claimant, as Tea Manager, was aware the tea quality was deficient before shipment and raised concerns only verbally with his supervisor, failing to escalate them. The Court applied the reasonable responses test, holding that a senior employee owed a direct duty of care and that his supervisor's possible negligence did not diminish his own culpability. Procedurally, the show cause letter, disciplinary hearing and termination letter met section 41 of the Employment Act.

p. 5
02

Whether the Claimant is entitled to the remedies sought

Holding

The claim for compensation was without basis and the entire claim was dismissed

Reasoning

Since the termination was found lawful and fair, the claim for compensation failed. The other claims, including loss of future earnings and leave pay, were abandoned at trial. The Claimant therefore received no remedies, and each party was ordered to bear its own costs.

p. 5

Legal principles established

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  • The Court applies the reasonable responses test and will not substitute its own decision for the employer's where the employer acted reasonably
  • The employer bears the burden of proving reasons for termination under section 43 of the Employment Act
  • An employee who becomes aware of a problem and fails to escalate concerns cannot claim unfair termination based on the resulting loss

Court orders

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  1. 1.The Claimant's claim for compensation for unfair termination is disallowed
  2. 2.The Claimant's entire claim is dismissed
  3. 3.Each party will bear their own costs

Authorities

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Legislation

  • Employment ActSection 43(1) and (2)
  • Employment ActSection 41
  • Employment ActSection 90
  • Employment ActSection 45

Cases cited (2)

  • CFC Stanbic Bank Limited v Danson Mwashako Mwakuwona
    [2015] eKLR
  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 others
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act; dispute arising from termination of employment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Shariffu Mike Omondi v Ranfer Teas (Kenya) Limited [2021] KEELRC 1750 (KLR)", Case Analysis (2021). Not stated in the judgment (Memorandum of Claim dated 31st January 2019, filed 14th February 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1750/eng@2021-05-13

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