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ELRCPartially AllowedCause No 110 of 2016· [2022] KEELRC 379 (KLR)

Jonathan Ciano v Uchumi Supermarkets Limited [2022] KEELRC 379 (KLR)

Employment and Labour Relations Court
31 March 2022
3,512 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that once an employee resigns, the employer cannot 'terminate' them afterwards — such a termination is legally void.

What this practically means

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Executive summary

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The claimant, formerly Group CEO of Uchumi Supermarkets Limited, sued for Kshs 47,410,222/= comprising notice pay, accrued leave, compensatory damages for unfair termination, salary for 13 days worked in June 2015 and gratuity. He contended he was terminated on 15th June 2015 for gross misconduct and gross negligence without investigation. The respondent denied unfair termination, asserting the claimant had voluntarily resigned on 13th June 2015, and blamed him for its trading losses. The court framed four questions: validity of the resignation, effect of the subsequent termination, whether the termination was unfair, and entitlement to reliefs. Relying on Edwin Beiti Kipchumba v National Bank of Kenya, the court held that resignation is a unilateral act effective immediately without employer acceptance, and the claimant's resignation of 13th June 2015 was valid and complete on its own. Following William Kariuki, Lottering and Kennedy Obala Oaga, the court found that the employer's jurisdiction over the employee, including the right to terminate, was extinguished upon the effective resignation; the purported termination of 15th June 2015 was therefore null and void. Since the termination was a nullity, no finding of unfairness could be made, defeating the compensatory damages claim. However, the court awarded admitted accrued leave, salary for days worked in June 2015 and admitted terminal dues of Kshs 6,574,850.95/= (salary, untaken leave and gratuity), payable forthwith, with costs to the claimant. The claim thus partially succeeded.

Key legal issues

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01

Validity of the claimant's resignation

Holding

The resignation was valid and effective on 13th June, 2015 without requiring acceptance by the respondent.

Reasoning

Relying on Black's Law Dictionary and Edwin Beiti Kipchumba v National Bank of Kenya, the court held resignation is a unilateral act of termination at the instance of the employee. The claimant unequivocally announced his intention to relinquish the CEO position with immediate effect, and the Employment Act does not require employer acceptance for the notice to take effect. The resignation was complete on its own.

p. 4
02

Effect of the purported termination after resignation

Holding

The termination of 15th June, 2015 was null and void of no legal effect since the employment relationship had already ceased.

Reasoning

Following William Kariuki v Kenya Civil Aviation Authority, Lottering v Stellenbosch Municipality and Kennedy Obala Oaga v Kenya Ports Authority, the court found that once resignation took effect the employment contract was extinguished and the employer lost jurisdiction, including the right to terminate. There was nothing to terminate; the purported termination was akin to flogging a dead horse and was declared null and void.

p. 5
03

Whether the termination was unfair and unlawful

Holding

No determination could be made on fairness because the termination was a nullity.

Reasoning

Since the termination was null and void for want of an existing employment relationship, it made no sense to inquire into its fairness. Citing Kennedy Obala Oaga v Kenya Ports Authority, the court held that to declare such a decision unfair would suggest it has legal consequences; it must be treated as if never made. Consequently no finding of unfair or unlawful termination was made.

p. 5
04

Entitlement to reliefs

Holding

Compensatory damages were refused; the claimant was awarded admitted accrued leave days, salary for days worked in June 2015 and terminal dues of Kshs 6,574,850.95/= comprising salary, untaken leave and gratuity.

Reasoning

With no finding of unlawful termination, compensatory damages could not be sustained. The respondent acknowledged 24 accrued leave days and salary for days worked. The respondent's defence admitted terminal dues computed at a gross sum of Kshs 6,574,850.95/=, and there was no evidence of payment, so the claimant was entitled to that sum, to be released forthwith.

p. 5

Legal principles established

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  • A resignation by an employee is a unilateral act that takes effect immediately and does not require the employer's acceptance.
  • Once an employee's resignation has taken effect, the employer loses jurisdiction over the employee, including the right to terminate employment; a purported termination of a non-existent contract is null and void.

Court orders

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  1. 1.Declaration that the claimant effectively resigned on 13th June, 2015 and his subsequent termination on 15th June, 2015 by the respondent was null and void
  2. 2.The claimant is entitled to the sum of Kshs 6,574,850.95/= being his terminal dues and the respondent is to release the same forthwith
  3. 3.The claimant shall have the costs of the suit

Authorities

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Legislation

  • Employment Actsections 41, 43 and 45
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticles 159(2)(d) and 48
  • Civil Procedure ActSection 1B

Cases cited (8)

  • Abisalom Ajusa Magomere vs Kenya Nut Company Limited
    (2014) eKLR
  • Pius Kimaiyo Langat vs Cooperative Bank of Kenya Ltd
    (2017) eKLR
  • Pius Machafu Isindu vs Lavington Security Guards Limited
    (2017) eKLR
  • Edwin Beiti Kipchumba vs National Bank of Kenya Limited
    [2018] eKLR
  • William Kariuki vs Kenya Civil Aviation Authority
    [2008] eKLR
  • Lottering vs Stellenbosch Municipality
    (2010) 31 ILJ 2923 (LC)
  • Kennedy Obala Oaga vs Kenya Ports Authority
    [2018] eKLR
  • Mtati vs KPMG (Pty) Ltd
    (2017) BLL 315 (LC)
Jurisdiction invoked
Employment and labour relations dispute under Article 162(2) of the Constitution (Court established as the Employment and Labour Relations Court)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Jonathan Ciano v Uchumi Supermarkets Limited [2022] KEELRC 379 (KLR)", Case Analysis (2022). Cause No 110 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/379/eng@2022-03-31

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