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ELRCPartially AllowedCause No. 381 of 2016· [2022] KEELRC 872 (KLR)

Simon Mulo Odipo v Nairobi Women’s Hospital [2022] KEELRC 872 (KLR)

Employment and Labour Relations Court
10 February 2022
2,626 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled the hospital fairly fired a stores manager for poor performance, but illegally rushed the process, awarding him over Kshs. 230,000.

What this practically means

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Executive summary

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The Claimant, employed as Stores-in-Charge at a hospital on a last monthly salary of Kshs. 40,950, was dismissed on 13th April 2016 following accusations of poor performance: 100 pieces of chicken found stale, delayed generation of Goods Received Notes delaying supplier payments, and an unhygienic store emitting a foul smell. He received a show-cause letter on 21st March 2016 requiring a response the same day by 5.00 p.m., was heard at a disciplinary hearing on 23rd March 2016, suspended for two weeks, and then terminated. He appealed internally, but the appeal was never heard because the Respondent considered the filing of the court claim to have overtaken it. The Court framed two issues: whether termination was fair under Sections 41, 43 and 45 of the Employment Act, and whether the Claimant merited the prayers sought. On procedure, the Court held the time given to respond and prepare was unreasonably short and the unhearing of the appeal rendered the process flawed. On substance, however, the Court found valid reasons justified termination: the Claimant was negligent, failed to diagnose the stale chicken problem before the Chief Chef did, proffered no explanation for the GRN delays, and had been warned, counselled, placed on a Performance Improvement Plan and transferred. The Claimant withdrew the reinstatement and injunction prayers in evidence. He was awarded 4 months' salary as compensation, notice pay, 13 days' salary and 4 days' leave, totalling Kshs. 230,725, with interest at court rates from the date of judgment. Prayers for refund of statutory deductions, luggage and baggage allowance and damages were declined for want of evidence. There was no order on costs.

Key legal issues

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01

Procedural fairness under Sections 41 and 45 of the Employment Act

Holding

Procedure was flawed; the time given to respond to the show-cause letter and prepare for the hearing was unreasonably short, and the unexplained non-determination of the appeal compounded the unfairness.

Reasoning

The Claimant was required to respond to multiple accusations within hours on 21st March 2016 and invited to a hearing on 23rd March with short notice. The Court held urgency does not excuse an employer from affording a reasonable facility to conduct a defence. The Respondent also failed to hear the Claimant's appeal, wrongly treating the filing of the court claim as dissolving it.

p. 3
02

Validity of reason under Sections 43 and 45 of the Employment Act

Holding

The Respondent established valid reasons: the Claimant's negligence over 100 stale chickens, delay in generating GRNs, poor store hygiene, and prior warnings, counselling, PIP and transfers.

Reasoning

As Stores-in-Charge, the Claimant was responsible for stock receipt and storage, yet the alarm over stale chickens was raised by the Chief Chef rather than the store. He offered no explanation for the GRN delays and had previously been warned for poor performance. The hospital context raised the expected standards of hygiene, placing patients and staff at risk if contaminated chickens were served.

p. 4
03

Remedies for procedurally unfair termination

Holding

The Claimant was awarded 4 months' salary as compensation, notice pay, salary for 13 days worked, and accrued leave days; other prayers failed for want of evidence.

Reasoning

Balancing the flawed procedure against the Claimant's contribution to the termination - approximately 5 years' service, warning letters and continued poor performance - the Court granted compensation equivalent to 4 months' salary, together with notice pay, 13 days' salary and 4 days' leave conceded by the Respondent.

p. 4

Legal principles established

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  • A rushed hearing cannot amount to a fair hearing; an employer must give an employee reasonable time to respond to a show-cause letter and prepare for a disciplinary hearing, regardless of claimed urgency.
  • An employer remains bound to hear and determine an internal appeal despite the employee filing a claim in court.

Court orders

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  1. 1.Declaration that termination was flawed on procedure, but well-founded on justification
  2. 2.Respondent to pay equivalent of 4 months' salary in compensation for unfair termination at Kshs. 163,000
  3. 3.Respondent to pay notice pay at Kshs. 40,950
  4. 4.Respondent to pay 13 days' salary at Kshs. 20,475
  5. 5.Respondent to pay 4 days of annual leave at Kshs. 6,300 - total Kshs. 230,725
  6. 6.No order on the costs
  7. 7.Interest allowed at court rates from the date of Judgment till payment is made in full

Authorities

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Legislation

  • Employment ActSections 41, 43 and 45
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, Sections 41, 43 and 45

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, "Simon Mulo Odipo v Nairobi Women’s Hospital [2022] KEELRC 872 (KLR)", Case Analysis (2022). Cause No. 381 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/872/eng@2022-02-10

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