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ELRCPartially AllowedCause No 1774 of 2017· [2022] KEELRC 1119 (KLR)

Anaya v Agility Logistics Limited (Cause 1774 of 2017) [2022] KEELRC 1119 (KLR)

Employment and Labour Relations Court
28 April 2022
SRStella Rutto
3,476 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed an employer can dismiss for poor performance but must give employees reasonable notice of a disciplinary hearing, awarding reduced damages.

What this practically means

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Executive summary

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The claimant, formerly employed by the respondent as an Export Supervisor from 1st December 2010 until his termination on 22nd May 2017, sued for compensatory damages of Kshs 1,746,360/= plus interest and costs, alleging unfair termination. The respondent admitted the employment relationship but justified the termination on grounds of negligence and loss of business, following a client complaint by Alpharama over mishandled shipments that led to a USD 3,000 penalty and withdrawal of business. At trial, both parties called oral evidence. The court framed three issues: justifiable cause, procedural fairness, and reliefs. On substance, the court found the claimant's duties squarely covered the client complaints, that he failed to respond to the client's emails, and that his assertion of being on leave was unsupported by evidence. Applying the range of reasonable responses test drawn from CFC Stanbic Bank Limited v Danson Mwashako Mwakuwona, the court held the respondent had a justifiable reason to terminate. On procedure, however, the court found the claimant received the disciplinary hearing notice only one hour before the hearing, which was unreasonably short and rendered the termination procedurally unfair, relying on Patrick Abuya v ICPAK. The court awarded nominal damages equivalent to two months' gross salary, Kshs 291,060.00, taking into account the claimant's contribution to his termination, with interest at court rates from the date of judgment and costs of the suit to the claimant. Judgment dated 28th April 2022 at Nairobi, delivered by Stella Rutto, Judge.

Key legal issues

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01

Justifiable cause for termination

Holding

The respondent had a justifiable reason to terminate the claimant's employment on grounds of negligence and loss of business.

Reasoning

The claimant, as Export Supervisor, was responsible for updating clients and handling export complaints. Alpharama's emails of 5th, 8th and 9th May 2017 went unanswered, resulting in a USD 3,000 penalty and withdrawal of business. The claimant's claim of being on leave was unsupported by evidence. Applying the range of reasonable responses test, the termination fell within what a reasonable employer could have done.

p. 6
02

Procedural fairness

Holding

The termination was procedurally unfair because the claimant received the disciplinary hearing notice only one hour before the hearing.

Reasoning

Section 41 of the Employment Act requires notification of allegations and an opportunity to respond. Although a show cause letter was issued and answered, the hearing notice was received at 1:00 pm for a 2:00 pm hearing the same day. One hour was insufficient to prepare psychologically for a hearing affecting the claimant's livelihood, rendering the process unfair.

p. 6
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Reliefs

Holding

Nominal damages equivalent to two months' gross salary were awarded despite the procedural unfairness finding.

Reasoning

Having found procedural unfairness but justified cause, the court exercised discretion to award two months' gross salary as compensatory damages, factoring in the claimant's own contribution to the termination. Judgment was entered for Kshs 291,060.00 with interest and costs.

p. 7

Legal principles established

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  • An employer must prove valid and fair reasons for termination under sections 43 and 45 of the Employment Act
  • The reasonableness of an employer's decision to dismiss is assessed on the range of reasonable responses test
  • A one-hour notice of a disciplinary hearing is unreasonably short and taints the fairness of the process

Court orders

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  1. 1.Judgment entered in favour of the claimant against the respondent in the sum of Kshs 291,060.00
  2. 2.The amount shall attract interest at court rates from the date of judgment until payment in full
  3. 3.The claimant shall have the costs of the suit

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 44(4)
  • Employment ActSection 45(2)(a) and (b)
  • Employment ActSection 45(2)(c)
  • Employment ActSection 45(4)(b)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (5)

  • Jane Samba Mukala v Ol Tukai Lodge Limited
    (2013) eKLR
  • Standard Group Limited v Jenny Luesby
    (2018) eKLR
  • CMC Aviation Limited v Mohammed Noor
    (2015) eKLR
  • CFC Stanbic Bank Limited vs Danson Mwashako Mwakuwona
    [2015] eKLR
  • Patrick Abuya v Institute of Certified Public Accountants of Kenya (ICPAK) & another
    [2015] eKLR
Jurisdiction invoked
Original jurisdiction under the Employment Act over the unfair termination 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, "Anaya v Agility Logistics Limited (Cause 1774 of 2017) [2022] KEELRC 1119 (KLR)", Case Analysis (2022). Cause No 1774 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1119/eng@2022-04-28

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