Koech v National Bank Of Kenya Limited (Cause E416 of 2020) [2022] KEELRC 1224 (KLR)
The bottom line
#The Employment Court ruled a Kenyan banker resigned voluntarily, not constructively dismissed, because his resignation letter gave a completely different reason from his later claims.
What this practically means
#Executive summary
#Key legal issues
#Whether the claimant was constructively dismissed or resigned voluntarily
The claimant resigned voluntarily; no fundamental breach of the employment contract going to the root of the contract was established, and causation was not proved
Applying the Coca Cola case principles, the court held that constructive dismissal requires a fundamental breach and a causal link between the employer's conduct and the resignation. The claimant's resignation letter cited a desire to pursue other career interests, not any repudiation. The procedural irregularities he alleged, even if true, amounted to breach of fair procedure rather than fundamental breach and could have been remedied by moving the court or raising the issues at the disciplinary hearing.
Whether the respondent's waiver of the notice period was irregular
No irregularity; the respondent lawfully paid one month's salary in lieu of notice under section 38 of the Employment Act
The claimant offered to serve one month's notice but the respondent declined and instead paid him one month's salary in lieu of notice. The court found this was a valid exercise of the employer's statutory power under section 38 of the Employment Act to waive notice upon payment of remuneration for the notice period.
Legal principles established
#- A claimant alleging constructive dismissal must demonstrate a fundamental breach of the employment contract and prove causation between the employer's conduct and the resignation
- The reason given in the resignation letter is relevant to determining whether the resignation was in response to a repudiatory breach
- An employer may waive an employee's notice period provided it pays remuneration for the notice period
Court orders
#- 1.The claim is dismissed in its entirety with no orders as to costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment claims under the Employment Act (specific article/section not stated in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Koech v National Bank Of Kenya Limited (Cause E416 of 2020) [2022] KEELRC 1224 (KLR)", Case Analysis (2022). Cause No E416 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1224/eng@2022-04-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.