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ELRCDismissedNot stated in the judgment as provided· [2022] KEELRC 1175 (KLR)

TIC v Telkom Kenya Limited (Cause 2200 of 2016) [2022] KEELRC 1175 (KLR)

Employment and Labour Relations Court
27 May 2022
2,286 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court dismissed a watchman's unfair termination claim because his 2006 dismissal was governed by the old Employment Act, which required no reasons or hearing.

What this practically means

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Executive summary

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The claimant, employed by Telicom Kenya (Telkom Kenya) as a watchman in 1992, was suspended in March 2006 over allegations of siphoning engine fuel at the Gigiri Exchange and terminated by letter dated August 2, 2006, receiving one month's salary in lieu of notice. He sued for Kshs 1,121,794 in compensatory damages, unpaid leave, severance pay, rest days and public holidays, contending his dismissal was unprocedural and that he was served while hospitalised at Mathare Mental Hospital for schizoaffective illness. The respondent defended the termination as lawful under the repealed Employment Act (Cap 226) and challenged the suit as time barred. The court first declined to disturb the leave previously granted to file suit out of time, noting the medical evidence supporting that Ruling was not before it. On the merits, the court held that the cause of action arose in 2006, before the Employment Act, 2007, so the repealed Act applied. Under section 14(5)(iii) of Cap 226, a periodic contract was terminable on 28 days' notice; the claimant received the equivalent of one month's notice. The repealed Act required neither reasons for termination nor a disciplinary hearing, so sections 41, 43 and 45 of the 2007 Act were inapplicable, and the claimant had been given an opportunity to respond to the allegations in writing. The court found the termination lawful and dismissed the claim in its entirety, with no orders as to costs.

Key legal issues

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01

Validity of leave granted to file suit out of time

Holding

The Court declined to interfere with the earlier leave extending time, since the medical evidence underpinning that ruling was not before it.

Reasoning

The respondent argued the claim was time barred and that section 30(3) of the Limitation of Actions Act did not apply because the claimant knew of the cause of action. The Court noted the earlier Ruling had been allowed on medical evidence of a disabling schizoaffective illness, but those medical reports were not before it in the present hearing, making re-evaluation impossible. It therefore stood by the prior leave and proceeded to hear the claim on its merits.

p. 4
02

Whether the termination was unfair and unlawful

Holding

The termination was lawful because it complied with the repealed Employment Act (Cap 226), which required neither reasons nor a hearing; one month's salary in lieu of the 28 days' notice sufficed.

Reasoning

The cause of action arose in 2006, before the Employment Act, 2007, so the repealed Act governed. Section 14(5)(iii) deemed a periodic contract terminable on 28 days' written notice; the claimant received one month's salary in lieu. The claimant responded to the fuel-siphoning allegations in writing and made a statement to the investigation branch; no hearing was required under the repealed Act. Sections 41, 43 and 45 of the 2007 Act were inapplicable.

p. 5

Legal principles established

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  • Under the repealed Employment Act (Cap 226), an employer who terminates a contract by giving notice (or pay in lieu) was not bound to give reasons for the termination, a position different from sections 43 and 45 of the Employment Act, 2007.
  • There was no provision for a disciplinary hearing under the repealed Employment Act (Cap 226), so section 41 of the Employment Act, 2007 does not apply to pre-2007 terminations.
  • A periodic contract of service governed by section 14(5)(iii) of the repealed Act was terminable by either party on 28 days' notice in writing.

Court orders

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  1. 1.Dismissal of the claim in its entirety
  2. 2.No orders as to costs

Authorities

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Legislation

  • Employment Act (Cap 226) (repealed)Section 14(5)(iii)
  • Employment Act, 2007Sections 41, 43, 45
  • Limitations of Actions ActSection 30(3)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure Act (Chapter 21)Section 1B
  • Constitution of KenyaArticles 159(2)(d) and 48

Cases cited (4)

  • Sotik Highlands Tea Estates Limited vs Kenya Plantation and Agricultural Workers Union
    (2017) eKLR
  • George M. Kingaruy vs Next Generation Communications Limited
    (2014) eKLR
  • Tana & Athi Development Authority vs Joseph Mbindyo & 3 others
    (2013) eKLR
  • Mary Wambui Kabugu vs KBS Ltd
    C.A No. 195 of 1995 (1997) eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Employment and Labour Relations Court; claim governed by the repealed Employment Act (Cap 226)

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, "TIC v Telkom Kenya Limited (Cause 2200 of 2016) [2022] KEELRC 1175 (KLR)", Case Analysis (2022). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1175/eng@2022-05-27

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