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ELRCPartially AllowedCause No 268 of 2016· [2022] KEELRC 31 (KLR)

Irungu v Smoothtel & Data Solutions Limited (Cause 268 of 2016) [2022] KEELRC 31 (KLR)

Employment and Labour Relations Court
26 April 2022
2,533 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court awarded an ex-HR manager nine months' salary because her employer fired her without telling her the charges or giving her a fair hearing.

What this practically means

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Executive summary

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The Claimant, employed as a Human Resource Manager from 8th October 2014 at a monthly salary of Kshs. 110,000/-, sued for unfair and unlawful termination. She alleged she was verbally suspended on 25th November 2015 without reasons, invited to disciplinary hearings without ever being furnished with the charges against her, subjected to repeated hearings that never took place, and ultimately called on 22nd December 2015 to collect a termination letter which she signed under duress, writing 'WITHOUT PREJUDICE' against her signature; she was then made to sign a second letter without those words. She sought a declaration of unfair termination, a certificate of service, 12 months' compensation, Kshs. 10,000/- allegedly deducted, one month's notice pay and costs. The Respondent denied unfair termination, asserting she was informed of the issues against her, failed to attend disciplinary hearings of her own choice, and waived her claim by signing a discharge and receiving her dues, save for Kshs. 10,000/- withheld for non-clearance. Only the Claimant testified. The Court found the termination unfair, holding that the emails showed she was never given a list of charges and that meetings repeatedly failed to take place, so the Respondent could not fault her non-attendance; Section 41 fair-hearing requirements were not met. The Court rejected the waiver defence, finding the discharge voucher was obtained through coercion by the CEO. Considering her 13 months of service and the Respondent's egregious conduct, the Court awarded 9 months' compensation (Kshs. 990,000/-), the admitted Kshs. 10,000/-, interest on both, and costs of the suit.

Key legal issues

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01

Whether the termination was procedurally fair under Section 41 of the Employment Act

Holding

The termination was unfair because the Claimant was never given a list of charges to respond to and scheduled hearings repeatedly failed to take place

Reasoning

The Court relied on the email exchanges showing the Claimant repeatedly requested the charges against her without success, and that meetings were called at short notice and often postponed or never took place. The Respondent could not fault her for non-attendance when it was its own conduct that prevented a hearing. Section 41 requires notice and a hearing where the employee is informed of the charges.

p. 4
02

Whether the Claimant waived her claim by signing the termination letter and accepting final dues

Holding

No, because the discharge was obtained through coercion and cannot be valid

Reasoning

The Respondent relied on Felix Mutie Musango on the binding nature of discharge certificates, but the Court found it curious to rely on that case where the Respondent's own CEO coerced the Claimant to sign the discharge voucher without the words 'without prejudice'. A contract vitiated by coercion cannot stand; the waiver therefore failed.

p. 4
03

Quantum of compensation for unfair termination

Holding

Nine months' salary (Kshs. 990,000/-) awarded, taking into account 13 months of service and the egregious conduct of the Respondent

Reasoning

Although the Claimant sought 12 months' compensation, the Court considered that she had worked only about 13 months, but tempered this with the Respondent's egregious conduct in denying her a fair hearing. The Court also awarded the admitted Kshs. 10,000/- deduction with interest from filing suit.

p. 4

Legal principles established

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  • An employer who fails to furnish an employee with the charges against her before a disciplinary hearing denies the employee a fair hearing under Section 41 of the Employment Act
  • A discharge or settlement agreement obtained through coercion cannot stand and does not waive an employee's rights

Court orders

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  1. 1.Judgment entered for the Claimant against the Respondent for 9 months salary as compensation for unfair and unlawful dismissal – Kshs. 990,000/-
  2. 2.Kshs. 10,000/- which remains outstanding as admitted by the Respondent
  3. 3.Interest at court rates on the compensation from the date of judgment till payment in full
  4. 4.Interest at court rates on the Kshs. 10,000/- from the date of filing suit till payment in full
  5. 5.Costs of the suit

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 44
  • Employment ActSection 45

Cases cited (9)

  • John Mwaura Ngugi v Safaricom Plc
    [2019] eKLR
  • Chrispine Otieno Caleb v Attorney General
    [2014] eKLR
  • Judicial Service Commission v Gladys Boss Shollei & Another
    [2014] eKLR
  • Felix Odhiambo Owuor v Electoral Institute for Sustainable Democracy in Africa
    [2020] eKLR
  • Mathew Lucy Cherusa v Poverelle Sisters of Belgamo T/A Blessed Louis Palazzalo Health Centre
    [2013] eKLR
  • Jackson Butiya v Eastern Produce Kenya Limited
    Industrial Court Cause No 335 of 2011
  • Paul Wanyangah v Market Development Trust t/a Kenya Markets Trust
    [2017] eKLR
  • Felix Mutie Musango v Tin Can Manufacturers Limited
    [2020] eKLR
  • Gilbert Mugambi v Michimikuru Tea Factory Limited
    [2018] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations disputes (Employment Act, 2007, Sections 41, 43, 45 relied upon)

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, "Irungu v Smoothtel & Data Solutions Limited (Cause 268 of 2016) [2022] KEELRC 31 (KLR)", Case Analysis (2022). Cause No 268 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/31/eng@2022-04-26

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