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ELRCPartially AllowedCause No 657 of 2016· [2022] KEELRC 44 (KLR)

Irungu v Primefuels Kenya Limited (Cause 657 of 2016) [2022] KEELRC 44 (KLR)

Employment and Labour Relations Court
26 April 2022
2,753 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that employees automatically become permanent once probation ends, and firing them without notice or a hearing is unfair.

What this practically means

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Executive summary

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The Claimant, employed as Human Resource Manager from May 2015 at a gross monthly salary of Kshs. 180,000/-, sued for unfair and unlawful termination. He alleged that after employees went on a go-slow demanding his dismissal, the Respondent falsely suspended and terminated him, posting the letters on the notice board without his knowledge, and later told him in October 2015 that his employment was unaffected and that he would work from home on full salary. He claimed unpaid salary, 12 months' compensation, accrued leave, a certificate of service, costs and interest. The Respondent denied his continued employment, asserting he was on probation, was not confirmed when probation lapsed on 14th November 2015, and was lawfully terminated on 5th October 2015 with dues paid. It counterclaimed Kshs. 60,000/- for an unreturned Dell laptop. The court held that confirmation on expiry of probation is an operation of law absent written extension for just cause, so the Claimant was deemed confirmed and the probationary exemptions and the Section 45(3) threshold did not apply. It found the dismissal breached Section 41, the Claimant having received neither notice nor a hearing, with the Respondent capitulating to striking workers. The Claimant was awarded compensation of two months' salary (Kshs. 360,000/-) and one month's notice pay (Kshs. 180,000/-), with costs and interest. The counterclaim failed because the laptop was returned in August 2016. Judgment was delivered at Nairobi on 26th April 2022 by Nzioki wa Makau J.

Key legal issues

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01

Whether the Claimant remained a probationary employee at termination

Holding

The Claimant was deemed confirmed by operation of law as he worked beyond probation without written extension, so Section 45(3) did not bar his claim

Reasoning

The court held that confirmation upon expiry of probation is automatic unless the employer extends probation in writing for just cause. Relying on Catherine Kathina Kelly and Patrick Korir Rotich, it found no confirmation letter or lawful extension existed, so the Claimant converted to a permanent employee by operation of law. Consequently, the probationary exemptions in Section 42 and the 13-month threshold in Section 45(3) did not apply, and the authorities cited by the Respondent were inapplicable.

p. 4
02

Whether the termination was procedurally fair

Holding

The termination was unfair as it disregarded Section 41 of the Employment Act; the Claimant was entitled to notice and a hearing

Reasoning

The court found the Respondent dismissed the Claimant to appease its workers engaged in a go-slow, without hearing him. A termination carried out without notice and without affording the employee an opportunity to be heard offends Section 41. The court characterised the Respondent's conduct as sacrificing the Claimant rather than confronting the staff who had threatened him, rendering the dismissal unfair.

p. 5
03

Quantum of compensation for unfair termination

Holding

Given the Claimant's short service, 2 months' salary as compensation plus one month's notice pay was adequate

Reasoning

While the Claimant sought 12 months' compensation under Section 49, the court noted he had not worked long enough to merit the full range of compensation. Considering his relatively short tenure, it awarded the equivalent of 2 months' gross salary (Kshs. 360,000/-) and one month's salary in lieu of notice (Kshs. 180,000/-), with interest and costs.

p. 5
04

The counterclaim for the Dell laptop

Holding

The counterclaim failed as the laptop was returned in August 2016

Reasoning

The Respondent counterclaimed Kshs. 60,000/- for an unreturned Dell laptop. The court found the Claimant had returned the laptop in August 2016 and that the Respondent failed to prove its counterclaim, which was accordingly dismissed without orders as to costs.

p. 5

Legal principles established

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  • Confirmation of an employee upon expiry of probation is an operation of law; probation may only be extended in writing for just cause
  • An employee who works beyond the probationary period without formal extension is deemed confirmed and Section 45(3) of the Employment Act does not apply
  • Dismissal without regard to Section 41 of the Employment Act (notice and hearing) is unfair

Court orders

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  1. 1.Compensation for 2 months – Kshs. 360,000/-
  2. 2.Notice Kshs. 180,000/-
  3. 3.Costs of the suit
  4. 4.Interest on (i) and (ii) above at court rates from date of judgment till payment in full
  5. 5.Counterclaim dismissed with no orders as to costs

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 42
  • Employment ActSection 43
  • Employment ActSection 45
  • Employment ActSection 45(3)
  • Employment ActSection 49
  • Employment ActSection 51
  • Employment Act, 2007Section 41

Cases cited (12)

  • Patrick Korir Rotich v Unilever Tea Kenya Limited
    [2016] eKLR
  • Catherine Kathina Kelly v Ilkisonko Sacco Limited
    [2016] eKLR
  • Banking Insurance Finance Union v Barclays Bank of Kenya Ltd & Another, Cause No. 95 of 2014
    [2016] eKLR
  • Mourine Achieng Madagow & Another v African Banking Corporation Ltd
    [2020] eKLR
  • Allfayo Jagona Imbuya v Board of Management Ivugwi Secondary School
    [2018] eKLR
  • Danish Jalang'o & Another v Amicabre Travel Services Limited
    [2014] eKLR
  • Samuel G. Momanyi v The Attorney General & Another
    [2012] eKLR
  • Nation Media Group Limited v Onesmus Kilonzo
    [2017] eKLR
  • John Muthomi Mathiu v Mastermind Tobacco (K) Limited
    [2018] eKLR
  • Antony Karanja Wainaina v Adrian Company Limited
    [2019] eKLR
  • Aysha Hafsa Musa v Computer Revolution Limited
    [2021] eKLR
  • Gladys Chelimo Bii v Kenya Power and Lighting Company Limited
    [2021] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over unfair and unlawful termination of employment under the Employment Act, 2007 (Sections 41, 42, 43, 45, 49 and 51)

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, "Irungu v Primefuels Kenya Limited (Cause 657 of 2016) [2022] KEELRC 44 (KLR)", Case Analysis (2022). Cause No 657 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/44/eng@2022-04-26

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