Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No 474 of 2017· [2022] KEELRC 1231 (KLR)

Muiruri v Githunguri Dairy Farmers Co-operative Society Limited (Cause 474 of 2017) [2022] KEELRC 1231 (KLR)

Employment and Labour Relations Court
20 July 2022
3,622 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

#

A Kenyan court ruled a milk company's dismissal unfair because it proved no valid reason and skipped mandatory hearing steps, awarding the employee about Kshs.350,000.

What this practically means

#

Executive summary

#
The Claimant, employed by the respondent from 12th October 2007 as a Milk Grader and later confirmed as a Quality Milk Inspector, was suspended by letter dated 30th June 2015 for allegedly refusing to write a statement about an incident of suspected milk theft at the Kambaa Cooling Centre. Following a board meeting on 22nd July 2015, to which he was summoned by telephone, he was summarily dismissed. He claimed a declaration of unfair termination, terminal dues, salary in lieu of notice, service gratuity, twelve months' compensation, general and exemplary damages, costs and interest. The respondent maintained that the Claimant's refusal to write a statement amounted to insubordination justifying dismissal, and that he was afforded a hearing. The court framed three issues: fairness of the termination, the effect of the signed entitlement form, and entitlement to reliefs. It found that the respondent failed on a balance of probability to prove a valid reason for dismissal: the alleged instructions came from the Claimant's junior who never testified, no investigation report was produced, and the dismissal letter was vague. Procedurally, the invitation letter contained no allegations, did not notify the Claimant of his right to be accompanied, minutes of the board meeting were not filed, and his juniors attended the meeting. The entitlement form was incomplete, lacking the other parties' signatures, and of no consequence. Judgment was entered for the Claimant with a declaration of unfair and unlawful dismissal, Kshs.50,000/= in lieu of notice, Kshs.300,000/= being six months' compensation, costs and interest, terminal dues and gratuity being declined.

Key legal issues

#
01

Whether the respondent had a valid and fair reason for the summary dismissal

Holding

No valid reason was established; the alleged insubordination was uncorroborated and the alleged instructor was the Claimant's junior and did not testify

Reasoning

The respondent relied on Section 44(4)(c) and (e) of the Employment Act. However, no evidence showed who instructed the Claimant to write a statement; the letters of David Muchiri and Kevin Ndereba Kirai were uncorroborated, Muchiri did not testify, and he was the Claimant's supervisee, not a person in authority. No security investigation report was availed despite RWI's admission that security would prepare one. The grounds for dismissal were therefore unproven.

p. 6
02

Whether the termination procedure complied with Section 41 of the Employment Act

Holding

The procedure was flawed; the invitation letter contained no allegations and did not notify the Claimant of his right to be accompanied, and minutes of the board meeting were not filed

Reasoning

The letter of 16th July 2015 had two sentences, set out no allegations, and was never delivered to the Claimant, who was notified by phone. He was not informed of his entitlement to be accompanied by a colleague, yet his juniors attended the meeting. The meeting minutes RWI said existed were not filed, leaving it unclear what transpired, what representations were made, or what the Board decided. These failures breach the Section 41 threshold.

p. 8
03

Effect of the entitlement form signed by the Claimant on 24th July 2015

Holding

The form was of no consequence as the other parties to the proposed agreement did not sign it

Reasoning

The court noted that neither party addressed the entitlement form in evidence or submissions. The document, dated 24th July 2015, was signed only by the Claimant and not by the other parties to the proposed agreement, making it incomplete. It therefore had no bearing on the Claimant's case and did not operate as a waiver or settlement of his claims.

p. 8
04

What reliefs the Claimant is entitled to

Holding

Declaration of unfair dismissal, one month's salary in lieu of notice and 6 months' compensation granted; terminal dues and gratuity declined

Reasoning

Having found the dismissal unjustified and procedurally flawed, the court invoked Section 49(1) of the Employment Act. In assessing quantum it considered the 7 years and 9 months of service, the Claimant's unblemished record and rise from Milk Grader to supervisor, and the absence of an appeal or desire to return. It awarded Kshs.50,000/= in lieu of notice and Kshs.300,000/= being six months' salary, plus costs and interest.

p. 8

Legal principles established

#
  • A fair termination must be both substantively justifiable and procedurally fair
  • Section 41 of the Employment Act prescribes a mandatory four-element procedure: explanation of grounds in a language the employee understands, the reason for termination, entitlement to be accompanied by a fellow employee, and hearing of representations
  • An employer bears the burden on a balance of probability to prove a fair and valid reason for termination; uncorroborated instructions from a subordinate who does not testify do not suffice

Court orders

#
  1. 1.Declaration that the Claimant's dismissal was unfair and unlawful
  2. 2.One month's salary in lieu of notice of Kshs.50,000/=
  3. 3.Equivalent of 6 months' compensation of Kshs.300,000/=
  4. 4.Costs of the suit to the Claimant
  5. 5.Interest at court rates from the date of judgment till payment in full

Authorities

#

Legislation

  • Employment ActSection 43
  • Employment ActSection 43(1)
  • Employment ActSection 41
  • Employment ActSection 44(4)(c) and (e)
  • Employment ActSection 45(2)
  • Employment Act, 2007Section 49(1)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (7)

  • Jackline Migare Kitunzi & another V Junior Hearts Academy
    (2022) eKLR
  • Alphone Maghanga Mwachanya V Operations (680) Ltd
    (2013) eKLR
  • Walter Ogal Anuro V Teachers Service Commission
    (2013) eKLR
  • Naima Khamisi V Oxford University Press (EA) Ltd
    (2017)
  • Jenny Luesby V Standard Crop Ltd
    (2017) eKLR
  • Pius Machafu Isindu V Lavington Security Guards Ltd
    (2017) eKLR
  • Postal Corporation of Kenya V Andrew K. Tanui
    (2019) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment claim)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Muiruri v Githunguri Dairy Farmers Co-operative Society Limited (Cause 474 of 2017) [2022] KEELRC 1231 (KLR)", Case Analysis (2022). Cause No 474 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1231/eng@2022-07-20

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