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ELRCPartially AllowedCause No. E001 of 2020· [2022] KEELRC 235 (KLR)

Benjamin Charles Akenga v Hema Hospital Limited [2022] KEELRC 235 (KLR)

Employment and Labour Relations Court
28 April 2022
2,342 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 ruled that a doctor whose employer stopped his salary and barred him from work was unfairly dismissed, not a deserter, awarding him Kshs. 1.25 million.

What this practically means

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Executive summary

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The claimant, a medical doctor employed by the respondent from 2016 on a monthly salary of Kshs. 250,000 without a written contract, sued for unfair termination. He fell ill in September 2019 and was granted one month's unpaid leave. He testified that on reporting back he was barred from resuming duty, his salary stopped from November 2019, and he was eventually terminated on 19th July 2020 by letter to the labour office, receiving only service pay of Kshs. 365,000 and no certificate of service. The respondent denied the termination averments, contending without prejudice that the claimant absconded for nine months, justifying summary dismissal under Section 44 of the Employment Act. The court framed two issues: desertion versus unfair dismissal, and whether reliefs were merited. It found the claimant had proved on a balance of probability that he did not desert employment but was constructively dismissed for no valid reason and without fair procedure, rejecting the Managing Director's evidence as untruthful and dishonest. Applying Kenfreight (EA) Limited v Benson K. Nguti, the court declared the dismissal unlawful and unfair under Section 45. The claimant was awarded one month's salary in lieu of notice (Kshs. 250,000), two months' compensation (Kshs. 500,000), and salary arrears for November and December 2019 only (Kshs. 500,000), totalling Kshs. 1,250,000, the arrears being limited by the duty to mitigate. A certificate of service, costs and interest at court rates were granted; the award is subject to statutory declarations.

Key legal issues

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01

Whether the claimant deserted his employment or was unfairly/constructively dismissed

Holding

The claimant proved on a balance of probability that he did not voluntarily desert employment; he was constructively dismissed for no valid reason and without fair procedure

Reasoning

The court accepted the claimant's testimony that he reported back after his unpaid leave lapsed but was barred from resuming duty. It found RW1 untruthful and dishonest because he contradicted himself on whether leave was granted and denied knowledge of conciliation proceedings despite a labour officer's letter showing the respondent participated. Even if the claimant absconded, the respondent never reached out to him before dismissal.

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02

Whether the reliefs sought were merited

Holding

Partially merited: declaration of unfair termination, one month's notice pay, two months' compensation, salary arrears for two months only, and certificate of service

Reasoning

Flowing from the declaration of unfair termination under Section 45, the claimant was awarded notice pay and compensation, tempered by his three years of service and absence of misconduct on his part. Salary arrears were limited to November and December 2019 because the claimant ought to have mitigated by seeking alternative work or resigning and suing for constructive dismissal earlier. Certificate of service was awarded under Section 51 of the Employment Act.

p. 3

Legal principles established

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  • Before terminating employment, an employer must have a valid and fair reason and must follow a fair procedure, including giving the employee a hearing
  • Where an employer stops an employee's salary and prevents him from resuming duty, the employee is constructively dismissed
  • An employee must mitigate loss after breach by the employer, including by seeking alternative employment

Court orders

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  1. 1.Declaration that the dismissal of the claimant from employment was unlawful and unfair within the meaning of Section 45 of the Employment Act
  2. 2.One month salary in lieu of notice of Kshs. 250,000
  3. 3.Compensation for unfair termination of Kshs. 500,000 (equivalent to 2 months' salary)
  4. 4.Salary arrears for November and December 2019 of Kshs. 500,000
  5. 5.Total award of Kshs. 1,250,000
  6. 6.Issuance of a certificate of service to the claimant under Section 51 of the Employment Act
  7. 7.Costs of the suit to the claimant
  8. 8.Interest at court rate from the date of judgment
  9. 9.Award of damages subject to statutory declarations

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 44(3) and (4)(a)
  • Employment ActSection 45
  • Employment ActSection 51
  • ELRC Procedure RulesRule 28(3)

Cases cited (3)

  • Kenfreight (EA) Limited v Benson K. Nguti
    [2016] eKLR
  • Banking, Insurance and Finance Union Kenya v Barclays Bank of Kenya Ltd
    Cause 1660 of 2013
  • Judith Atieno Owuor v Sameer Agriculture and Livestock Ltd
    [2020] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (first-instance employment cause)

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, "Benjamin Charles Akenga v Hema Hospital Limited [2022] KEELRC 235 (KLR)", Case Analysis (2022). Cause No. E001 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/235/eng@2022-04-28

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