Mirikau v Exon Investments Limited (Cause E002 of 2021) [2022] KEELRC 1441 (KLR)
The bottom line
#A Kenyan court ruled a mechanic's dismissal had a valid reason but was procedurally unfair, awarding him over Kshs. 122,000.
What this practically means
#Executive summary
#Key legal issues
#Validity of the reason for summary dismissal
The reason of absenteeism/desertion of duty was proved and valid, the court finding service of the transfer letter credible
The court accepted the Respondent's witness as credible on personal delivery of the transfer letter and noted the Claimant's own testimony that Japheth Ouma reported as a mechanic in November 2018, matching his stated replacement. The dismissal letter of December 17, 2018 citing absenteeism was stamped at the Mombasa County Labour Office. The Claimant was found not candid in his evidence, so desertion was established as a valid reason under Section 44(4)(a).
Procedural fairness of the termination
The termination was procedurally unfair despite the valid reason
Section 41(2) required the employer to hear and consider representations before summary dismissal for misconduct. The reliance letter referred to a show cause letter that was never produced, and no 28-day notice under Section 35(1)(c) was issued nor payment in lieu. Procedural fairness was held mandatory, warranting notice pay and one month's salary as compensation given the desertion finding.
Jurisdiction over work injury claim
The court lacks original jurisdiction over WIBA claims and referred the claim to the Director
The Respondent submitted, relying on section 52 of the Work Injury Benefits Act and decisions of Makau J and Rika J, that only the Director holds original jurisdiction over work injury claims, with the court exercising appellate jurisdiction. The court was persuaded, noting also that such claims require assessment on doctors' reports, and referred the claim to the Director of WIBA.
Wrongful salary deductions
Deductions totalling Kshs. 28,578/- were proved and the employer failed to justify them
The Claimant pleaded specific months of deductions and produced bank statements showing salary below the admitted net salary of Kshs. 25,000/-. The employer, as custodian of records under Section 74, failed to produce pay slips or Mpesa records of alleged salary advances. The burden under Section 47(5) shifted to the employer, whose failure justified an award of the deducted sum.
Legal principles established
#- The burden of proving the reasons for termination lies with the employer under Section 43 of the Employment Act, and reasons are those genuinely believed to exist at the time of termination
- An employee is entitled to procedural fairness under Section 41 of the Employment Act even where the reason for termination exists
- This Court has only appellate, not primary, jurisdiction over WIBA compensation claims, which fall in the first instance to the Director under the Work Injury Benefits Act
- The employer is the custodian of employment records, and once an employee demonstrates wrongful deductions the burden shifts to the employer to justify them under Section 47(5)
Court orders
#- 1.Compensation for unlawful termination equivalent to 1 month's gross salary of Kshs. 28,857/-
- 2.Notice pay for 1 month of Kshs. 28,857/-
- 3.Unpaid salary for 17 days for December 2018 of Kshs. 16,352.30
- 4.Refund of wrongful deductions of Kshs. 28,578/-
- 5.Payment in lieu of annual leave of 21 days of Kshs. 20,200/-
- 6.Total of Kshs. 122,844.30/- to be paid subject to statutory deductions
- 7.The claim for work injury is referred to the Director of WIBA for assessment under the WIBA Act
- 8.The Respondent to issue the Claimant with a Certificate of Service pursuant to Section 51 of the Employment Act
- 9.Respondent to pay Claimant costs of the suit
- 10.Interest on the award at court rates from date of judgment until payment in full
- Jurisdiction invoked
- Original jurisdiction of the Employment and Labour Relations Court under the Employment Act; the court expressly declined jurisdiction over the WIBA work injury claim (Work Injury Benefits Act, section 52)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mirikau v Exon Investments Limited (Cause E002 of 2021) [2022] KEELRC 1441 (KLR)", Case Analysis (2022). Cause No E002 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1441/eng@2022-05-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.