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ELRCPartially AllowedCause No E018 of 2020· [2022] KEELRC 1307 (KLR)

Muyala v Equator Bottlers Limited (Cause E018 of 2020) [2022] KEELRC 1307 (KLR)

Employment and Labour Relations Court
7 July 2022
3,863 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that firing an employee for medical reasons without offering reasonable accommodation or a proper hearing is unfair termination, awarding 12 months' salary.

What this practically means

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Executive summary

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The claimant, employed by the respondent from 2013 and rising to warehouse team leader, was terminated on September 3, 2020 after medical reports found she was fit to work only day shifts, while her role was shift-based. She claimed unfair termination, discrimination on health grounds, damages, gratuity, exemplary damages and reinstatement. The court framed two issues: whether the termination was unfair, and whether the claimant deserved the remedies sought. On fairness, the court held that the 'capability hearing' did not comply with section 41 of the Employment Act because the claimant was not told termination was contemplated. Further, the respondent failed in its duty to reasonably accommodate her: instead of allowing her to work day shifts, it offered only higher or lower posts, which the court found was a ploy to induce her to decline so she could be terminated. RW1 conceded there was no real cost to allowing day shifts. However, the court found no discrimination, as there was no evidence of differential treatment of similarly placed employees. The termination was declared unfair and the claimant was awarded maximum compensation of 12 months' salary (Kshs 1,440,000), plus costs and interest. Gratuity was dismissed as her contract made no provision for it; exemplary damages were refused absent discrimination; and reinstatement was found impractical because the respondent had shown unwillingness to accommodate her condition and a similar dispute was likely to recur.

Key legal issues

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01

Whether the termination of the claimant on medical grounds was fair

Holding

The termination was unfair; the reasons were not valid and fair and the process breached section 41 and the duty to reasonably accommodate.

Reasoning

The claimant's role required night shifts which her doctors advised against. The respondent held a 'capability hearing' without informing her termination was contemplated, breaching section 41. Instead of offering a lateral day-shift arrangement, it offered only higher or lower posts, which the court found was a ploy to set her up for termination. RW1 confirmed there were no real costs to allowing day shifts and no evidence of staff objections, showing insufficient effort to accommodate her.

p. 7
02

Whether the claimant was discriminated against on the basis of health status

Holding

No discrimination was established; the case was purely one of unfair termination premised on her health status.

Reasoning

The court adopted the test that discrimination requires differential treatment compared to others similarly situated. No evidence showed other employees with similar medical needs being permitted day shifts while the claimant was denied. Therefore, although the termination turned on her medical condition, it lacked the comparative element needed for a finding of unlawful discrimination.

p. 6
03

What remedies flow from the finding of unfair termination

Holding

Maximum compensation of 12 months' salary awarded; gratuity, exemplary damages and reinstatement refused.

Reasoning

Having served from 2013 to 2020 and having been cleared of prior misconduct allegations, the claimant earned maximum compensation under sections 49 and 50 of the Employment Act. Gratuity failed because her contract provided none and she belonged to a provident fund and NSSF. Exemplary damages failed absent discrimination, and reinstatement was impractical given the respondent's demonstrated unwillingness to accommodate her condition.

p. 7

Legal principles established

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  • Where an employee is taken ill during employment, the employer has an obligation to reasonably accommodate the employee, including by adjusting duties where feasible.
  • A hearing on capacity/medical grounds must still comply with section 41 of the Employment Act, including notice that termination is contemplated.

Court orders

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  1. 1.Payment of 12 months salary as compensation for unfair termination at Kshs 1,440,000/-
  2. 2.Costs of the suit and interest until payment in full
  3. 3.Claims for gratuity, exemplary damages and reinstatement dismissed

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007sections 49 and 50
  • Employment Act, 2007section 49(4)
  • Constitution of Kenya, 2010article 27

Cases cited (12)

  • VMK v CUEA
    [2013] eKLR
  • Joseph Mwaniki Nganga v United Millers Limited
    [2022] eKLR
  • Denis Mwenda Gitonga v Ernest & Young LLP
    (2018) eKLR
  • Hesbon Ngaruiya Waigi v Equitorial Commercial Bank Limited
    [2013] eKLR
  • Municipal Council of Eldoret v Titus Gatitu Njau
    (2020) eKLR
  • Kennedy Nyaguncha Omanga v Bob Morgan Services Limited
    [2013] eKLR
  • Samuel Wanyonyi Wamalwa v Wells Fargo Limited
    [2014] eKLR
  • Kenya Plantations & Agricultural Workers Union v Rea Vipingo Plantations & Another
    [2015] eKLR
  • Benjamin Langwen v National Environment Management Authority
    [2016] eKLR
  • Margaret Omondi v Kenya Revenue Authority
  • Rookes v Benard
    [1964] AC 1129
  • Equity Aviation Services (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration & Others
    [2008] 12 B.I.L.R 1129 (CC)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

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, "Muyala v Equator Bottlers Limited (Cause E018 of 2020) [2022] KEELRC 1307 (KLR)", Case Analysis (2022). Cause No E018 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1307/eng@2022-07-07

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