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ELRCPartially AllowedCause No 734 of 2016· [2022] KEELRC 1570 (KLR)

Suri v Edulink International College Limited (Cause 734 of 2016) [2022] KEELRC 1570 (KLR)

Employment and Labour Relations Court
28 July 2022
3,204 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan employer couldn't fire a college principal for poor performance without documented evaluations and a fair improvement process.

What this practically means

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Executive summary

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The claimant, a dual Kenyan-British citizen, was employed by the respondent on January 5, 2015 as Principal of its college on a three-year renewable contract with a mandatory six months' probation. Her probation ended in June 2015 and she served a further three months. On September 28, 2015 the Board met her, and by letter dated October 2, 2015 her employment was terminated on the ground that she was not the right person to take the college forward. The respondent asserted poor performance, said two performance meetings were held, but produced no minutes, no performance evaluation policy and no set targets or improvement path. The claimant sought salary for the contract period, declarations of unfair and unlawful termination, certificate of service, twelve months' compensation, allowances, costs and interest. The court framed two issues: whether the termination was for a valid reason following fair procedure, and whether the claimant was entitled to the reliefs sought. The court held that although the respondent may have had a valid reason, it failed to prove a fair and reasonable evaluation procedure with timelines and known measures, violating sections 41, 43 and 45 of the Employment Act, 2007. The claimant, having completed probation, was a protected employee. The court awarded three months' salary (Kshs 660,000) as compensation, USD 900 for relocation travel costs, interest at court rates from judgment, and costs of the suit. Claims for leave pay (already settled), hotel accommodation and 2015 bonus (want of proof) were dismissed; the GBP 3,000 relocation claim was substituted with USD 900. Judgment was entered for the claimant and delivered virtually at Nairobi on July 28, 2022 by Mathews N. Nduma, Judge.

Key legal issues

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01

Whether termination of the claimant was for a valid reason following a fair procedure.

Holding

The court found that though the respondent may have had a valid reason, it failed to adduce tangible evidence that a fair and reasonable procedure was followed to evaluate the claimant's performance and provide a fair improvement path with timelines and known measures; termination violated sections 41, 43 and 45 of the Employment Act, 2007.

Reasoning

The respondent relied on verbal discussions of performance at meetings of September 28/29 and October 2, 2015 but produced no minutes, no performance evaluation policy, no set targets or criteria known to the claimant, and no documented improvement path. RW.1 admitted there were no documents showing failure of performance and no minutes of the alleged performance meetings. Poor performance as a ground of termination places a high evidential burden on the employer, which was not discharged.

p. 5
02

Whether the claimant was a permanent/protected employee after serving probation.

Holding

The claimant, having completed the six months' probation period without extension, was a protected employee whose termination had to strictly comply with the law and the written contract.

Reasoning

The contract had a mandatory six months' probation ending in June 2015; the claimant continued serving a further three months. Once probation was completed and not extended, the respondent was bound to honour the three-year contract and could not terminate otherwise than in strict compliance with the Employment Act, 2007 and the contract's provisions.

p. 5
03

Whether the claimant was entitled to relocation costs and hotel accommodation promised verbally.

Holding

Relocation costs were awarded at USD 900 (mirroring the respondent's payment of USD 900 for the return journey) as credible parole evidence read into the contract; the hotel accommodation claim failed for want of documentary proof.

Reasoning

The claimant testified she was verbally promised travel costs and one month's hotel accommodation; RW.1 offered no credible counter-evidence. The court held relocation costs between countries are reasonable expenses lawfully expected to be met by an employer, and the USD 900 paid for the return journey was extraneous proof the same applied on arrival. However, special damages required proof, and no receipts for the hotel were produced.

p. 5
04

What compensation is payable for the unlawful and unfair termination.

Holding

The court awarded the equivalent of three months' salary, Kshs 660,000 (220,000 x 3), under section 49(1)(c) and (4) of the Employment Act, 2007.

Reasoning

The claimant worked only nine months of a three-year contract, lost career prospects and suffered psychological trauma, embarrassment and financial loss; she contributed nothing to the loss; and terminal benefits were paid several months late. Guided by the Court of Appeal's caution against unjust enrichment, punishment or sanguine assessment of prospects, the court considered all circumstances and fixed compensation at three months' salary.

p. 6
05

Whether the claim for payment in lieu of leave was still outstanding.

Holding

The claim was fully settled, having been included in the terminal dues (Kshs 223,997 in lieu of leave days not taken) paid on May 18, 2016.

Reasoning

The respondent computed terminal dues including three days' salary for January 2016, leave pay, and USD 900 for a one-way return ticket; payment was made by cheque on May 18, 2016 together with a certificate of service. The court therefore found no basis to award leave pay afresh.

p. 6

Legal principles established

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  • Where poor performance is the reason for termination, the employer bears a high level of proof and must demonstrate a performance evaluation policy or practice and measures taken to address poor performance before termination.
  • An employer who has not followed a fair and reasonable procedure to evaluate performance and provide a fair and reasonable path of improvement cannot justify termination as for a valid reason.
  • Relocation costs of an employee being brought from one country to another are reasonable expenses lawfully expected to be met by a prospective employer, and credible parole evidence of such a promise may be read into the contract of employment.
  • Damages for unfair termination are not aimed at facilitating unjust enrichment nor meant to punish the employer, and should not be awarded on sanguine assessment of prospects.
  • An employee who has completed the set probation period is a protected employee and termination of the contract must strictly comply with the law and the written contract.

Court orders

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  1. 1.Kshs 660,000 compensation for the unlawful and unfair termination of employment (equivalent of three months' salary).
  2. 2.USD 900 in respect of travel expenses from United Kingdom to Kenya at the beginning of the contract term in Kenya, payable in Kenya Shillings at the equivalent rate.
  3. 3.Interest at court rates from date of judgment till payment in full.
  4. 4.Costs of the suit to the claimant.

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 45
  • Employment Act, 2007section 49(1)(c) and (4)
  • Employment Act, 2007section 36
  • Employment Act, 2007section 8

Cases cited (8)

  • Francis Abuya Oduk v Hasbath Kenya Limited
    [2020] eKLR
  • Agnes Yohuna Digo v PJ Petroleum Equipment Limited
    Industrial Cause No. 2049 of 2011
  • Jane Samba Mukala v Ol Tukai Lodge Limited
    [2013] eKLR
  • Kenfreight (EA) Limited v Benson K Nguti
    [2016] eKLR
  • Nazareno Kariuki v Feed the Children Kenya
    [2013] eKLR
  • Elizabeth Wakanyi Kibe v Telkom Kenya Limited
    [2014] eKLR
  • Standard Group Limited v Jenny Luesby
    [2018] eKLR, Civil Appeal No. 29 of 2014
  • Menginya Salim Murgani v Kenya Revenue Authority
    Civil Case No 113 of 2012
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 36, 41, 43, 45, 49) and Article 162(2) of the Constitution (implied by the court's jurisdiction over employment and labour relations); no express provision cited in the judgment.

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, "Suri v Edulink International College Limited (Cause 734 of 2016) [2022] KEELRC 1570 (KLR)", Case Analysis (2022). Cause No 734 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1570/eng@2022-07-28

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