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ELRCPartially AllowedEmployment and Labour Relations Claim (Memorandum of Claim dated 22nd August 2016)· [2022] KEELRC 497 (KLR)

Godfrey Allan Tollo v Registered Trustees Gertrude Children’s Hospital [2022] KEELRC 497 (KLR)

Employment and Labour Relations Court
10 March 2022
3,828 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 an employee serving a resignation notice can still be disciplined and dismissed by their employer before the notice takes effect.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 2009 as ICT Manager (later Head of Information Services), tendered a 90-day resignation notice on 9th June 2014 while the Respondent was conducting investigations into irregular ICT procurement. The Respondent declined to accept the resignation, suspended him and required him to show cause. After he failed to provide a substantive response or access the documents offered, the Respondent summarily dismissed him on 30th June 2014 for procurement irregularities said to have exposed the Hospital to losses exceeding Kshs. 3.8 million. The Claimant sued for a declaration of unlawful termination, 12 months' salary, notice pay, bonus, leave pay and a certificate of service. The court framed three issues: the effect of the resignation notice on disciplinary proceedings, the lawfulness of the dismissal, and remedies. Relying on the principle that an employer retains disciplinary jurisdiction over an employee serving a notice period, the court held the Respondent had capacity to discipline the Claimant. It found the Claimant an unwilling participant in the disciplinary process who squandered his opportunity to defend himself, and his payment undertaking cast doubt on his innocence. The dismissal was held lawful and fair. Only the claim for a Certificate of Service succeeded; compensation, notice pay, bonus and leave pay were rejected, and each party was ordered to bear its own costs. The judgment was delivered virtually at Nairobi on 10th March 2022 by Linnet Ndolo J.

Key legal issues

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01

Effect of resignation notice on pending disciplinary proceedings

Holding

A resignation by notice does not oust the employer's disciplinary jurisdiction until the notice takes effect

Reasoning

The court adopted Kennedy Obala Oaga v Kenya Ports Authority, distinguishing immediate resignation from resignation by notice. Since the Claimant gave a 90-day notice effective 8th September 2014, he remained an employee during the notice period and remained subject to disciplinary control when dismissed on 30th June 2014.

p. 4
02

Whether the summary dismissal was lawful and fair

Holding

The dismissal was lawful and fair; the Claimant was afforded an opportunity to be heard but squandered it

Reasoning

The Claimant was issued a show cause letter and access to investigation reports and documents. He failed to keep timelines, did not attend to peruse documents on 20th June 2014, and did not furnish a substantive response. His willingness to forfeit benefits and pay Kshs. 1,000,000 as restitution cast doubt on his innocence.

p. 6
03

Entitlement to remedies

Holding

Only a Certificate of Service was awarded; compensation, notice pay, bonus and leave pay were refused

Reasoning

Having found no wrongful dismissal, compensation and notice pay failed. The bonus claim lacked any established basis and the leave pay claim lacked particulars, so both were disallowed.

p. 6

Legal principles established

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  • An employer retains jurisdiction to discipline an employee who has given notice of resignation while the employee is still serving the notice period
  • An employee who fails to participate in an employer's internal disciplinary process cannot later claim he was not heard

Court orders

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  1. 1.The Claimant be issued with a Certificate of Service
  2. 2.The claim for compensation and notice pay is rejected
  3. 3.The claims for bonus and leave pay are disallowed
  4. 4.Each party to bear their own costs

Authorities

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Legislation

  • Employment Actnot specified

Cases cited (3)

  • Kennedy Obala Oaga v Kenya Ports Authority
    [2018] eKLR
  • Mtati v KPMG (Pty) Ltd
    (2017) BLL 315 (LC)
  • Jackson Butiya v Eastern Produce Limited
    Cause No 335 of 2011
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment claim)

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, "Godfrey Allan Tollo v Registered Trustees Gertrude Children’s Hospital [2022] KEELRC 497 (KLR)", Case Analysis (2022). Employment and Labour Relations Claim (Memorandum of Claim dated 22nd August 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/497/eng@2022-03-10

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