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ELRCPartially AllowedEmployment and Labour Relations Court cause filed by memorandum of claim dated 31st July 2018, amended 5th October 2018 (Nakuru)· [2022] KEELRC 223 (KLR)

George Mwangi v George Mwangi [2022] KEELRC 223 (KLR)

Employment and Labour Relations Court
26 April 2022
3,518 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, an accountant who was summarily dismissed by the Respondent's advocates by notice dated 20th July 2018 taking effect on 1st August 2018, sued for reinstatement, shareholder dividends and director remuneration, and in the alternative unpaid wages, underpaid salary for 23 years, and damages for unfair dismissal. At hearing he abandoned the main prayers in favour of the alternative prayers. The court framed three issues: whether the summary dismissal was unfair or wrongful, the remedies due, and costs. On substantive fairness, the court held that the Respondent, citing absenteeism under Section 44(4)(a) of the Employment Act, failed to discharge its burden under Section 43: RW1 admitted no attendance records existed and none were produced. On procedural fairness, it was admitted that no show cause letter was issued, no hearing was held, and no right of appeal was communicated, contrary to Section 41 of the Act, Article 47 of the Constitution and the rules of natural justice. The dismissal was declared unfair, wrongful and unlawful. The court held the notice issued by the Respondent's advocates was not invalidated by that fact. On remedies, the claims for Kshs.6,920,175/= in wages and benefits and Kshs.23,832,000/= in underpaid salary failed for want of particulars and proof, the court finding the Claimant was a consultant until 2004 and an employee only from January 2005. Applying Section 49(1)(c), the court awarded the maximum 12 months' gross salary on the April 2018 payslip figure of Kshs.209,146/=, totalling Kshs.2,509,752/=, subject to statutory deductions, with interest and costs to the Claimant.

Key legal issues

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01

Substantive fairness of the summary dismissal

Holding

Dismissal was substantively unfair; the employer failed to prove absenteeism

Reasoning

The notice cited prolonged absenteeism under Section 44(4)(a) of the Employment Act. RW1 admitted there were no attendance records, and none were produced to prove absence between 2017 and July 2018. The employer, as custodian of employment records under Section 10, bore the burden under Section 43. Having failed to discharge it, the dismissal lacked a valid reason.

p. 5
02

Procedural fairness of the summary dismissal

Holding

Dismissal was procedurally unfair - no show cause letter, no hearing, no right of appeal communicated

Reasoning

Section 41 of the Employment Act requires notification of allegations and a hearing before summary dismissal. RW1 admitted no show cause letter was issued and no disciplinary hearing records existed. The court aligned procedural fairness with Article 47 of the Constitution, Section 4 of the Fair Administrative Actions Act and the rules of natural justice, and adopted the holdings in the cited authorities.

p. 5
03

Quantum of compensation

Holding

Maximum 12 months' gross salary awarded, computed on the last payslip figure of Kshs.209,146/=

Reasoning

Having found the dismissal unfair, the court considered Section 49 factors: 13 years of service, denial of both substantive and procedural fairness, absence of proof of the claimant's contribution to the dismissal, the bitter relationship, and no evidence of mitigation. The last payslip (April 2018, Kshs.209,146/=) was preferred over the pleaded Kshs.208,246/=. The award is subject to statutory deductions.

p. 7
04

Employment relationship prior to January 2005

Holding

Claimant was a consultant from 1993/1995 to 2004, not an employee; employment began 1st January 2005

Reasoning

The claimant admitted he sent fee notes and invoices for the first ten years and was not earning a salary, and that the first contract of employment was dated 16th January 2006. RW1's evidence that he took full-time employment in January 2005 was credible; he could not be both an employee earning salary and a consultant earning fees for the same services. Claims premised on 23 years of employment therefore failed.

p. 6

Legal principles established

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  • An advocate duly instructed may lawfully issue a termination notice on behalf of the employer; issuance by lawyers does not invalidate the notice.
  • Under Section 43 of the Employment Act the employer bears the burden of proving the reasons for termination; failure makes the termination unfair.
  • Compensation for unfair dismissal is capped at 12 months gross salary under Section 49(1)(c) of the Employment Act.
  • A party claiming a liquidated sum must plead and prove particulars; the pleading alone is insufficient.

Court orders

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  1. 1.A declaration that the dismissal of the Claimant by the Respondent was unfair, wrongful, and unlawful for lack of both substantive and procedural fairness
  2. 2.Award of Kshs.2,509,752/= being compensation for the wrongful and unlawful dismissal
  3. 3.The award shall earn interest at court rates from the date of judgment till payment in full
  4. 4.Costs to the Claimant

Authorities

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Legislation

  • Employment ActSection 35(1)(c)
  • Employment ActSection 43(1) and (2)
  • Employment ActSection 44(4)(a)
  • Employment ActSection 10
  • Employment ActSection 41
  • Employment ActSection 45
  • Employment ActSection 49 and 49(c)
  • Constitution of KenyaArticle 47
  • Fair Administrative Actions ActSection 4

Cases cited (6)

  • Mary Chemweno -Vs- Kenya Pipeline Company Limited
    (2017) eKLR
  • Loice Otieno -Vs- Kenya Commercial Bank Limited
    (2013) eKLR
  • Walter Ogal Anuro -Vs- Teachers Service Commission
    (2012) eKLR
  • Kenya Union of Commercial & Allied Workers –vs- Meru North Farmers Sacco Limited
    (2014) eKLR
  • Rebecca Ann Maina and Others Vs. Jomo Kenyatta University of Agriculture and Technology
    (2014) eKLR
  • Jared Aimba Vs. Fina Bank Ltd.
    (2016) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act; Article 47 of the Constitution and the Fair Administrative Actions Act invoked on procedural fairness

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, "George Mwangi v George Mwangi [2022] KEELRC 223 (KLR)", Case Analysis (2022). Employment and Labour Relations Court cause filed by memorandum of claim dated 31st July 2018, amended 5th October 2018 (Nakuru). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/223/eng@2022-04-26

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