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ELRCDismissedNot stated in judgment· [2022] KEELRC 1572 (KLR)

Chandi v One Acre Fund (Cause 377 of 2018) [2022] KEELRC 1572 (KLR)

Employment and Labour Relations Court
8 June 2022
1,198 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 upheld dismissal for poor performance, ruling that employees who skip disciplinary hearings can't later claim unfair termination or future pay.

What this practically means

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Executive summary

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The Claimant sued alleging unfair termination and breach of contract. He was dismissed for poor performance on 24 April 2018 after failing to meet job expectations and not improving during a 12-week Performance Improvement Plan. A show-cause notice dated 17 April 2018 invited written representations and an oral hearing with the right to be accompanied by a colleague; the Claimant ignored both, contending that he had instead lodged a complaint with the Labour Office. The Court held that the complaint to the Labour Office was not a valid excuse for failing to make direct representations, and that the Respondent substantially complied with sections 35(1)(c) and 41 of the Employment Act on procedural fairness. On substantive fairness, sections 43 and 45 placed the burden on the Respondent, which discharged it by setting expectations, conducting performance reviews identifying deficiencies, and offering a Performance Improvement Plan with supervisory support. The Court held that any reasonable employer would have separated with an employee whose performance did not improve. On breach of contract, the Claimant sought US$24,000 representing income to the end of his 14-month contract, plus flight, travel, laptop, medical, education and housing allowances. The Respondent showed these were reimbursable benefits not utilised, or bonus payments for which he did not qualify. The Court found no contractual or legal foundation for the claims and, endorsing the Supreme Court of Uganda's decision in Bank of Uganda v Tinkamanyire, held that compensation for the unexpired term of a contract and future allowances is speculative and unattainable in law. The Cause was dismissed with costs on 8 June 2022.

Key legal issues

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01

Procedural fairness of the termination

Holding

The Respondent substantially complied with sections 35(1)(c) and 41 of the Employment Act; termination was procedurally fair.

Reasoning

The Claimant was issued a show-cause notice setting out allegations and invited to a written response and an oral hearing, with the right to be accompanied by a colleague. He declined to respond or attend, offering only his Labour Office complaint as explanation, which the Court held was not a valid excuse. The statutory requirements of notification and hearing were therefore met.

p. 2
02

Substantive fairness of the termination

Holding

The reason for termination (poor performance) was valid and fair.

Reasoning

Under sections 43 and 45 of the Employment Act the Respondent bore the burden of proving validity and fairness of the reason. The Respondent set out job expectations, reviewed performance, identified deficiencies, and placed the Claimant on a 12-week Performance Improvement Plan with support meetings. Performance did not improve, justifying separation. A reasonable employer would have taken the same decision.

p. 3
03

Breach of contract - anticipated income and allowances

Holding

No breach established; the claimed future income and allowances were not due.

Reasoning

The Claimant sought income to the end of his 14-month contract plus flight, travel, laptop, medical, education and housing allowances. The Respondent showed these were reimbursable benefits not utilised, and some were bonus-based and not earned. The Court found no contractual or legal foundation for the claims and endorsed the Uganda Supreme Court's position that such claims are speculative.

p. 3

Legal principles established

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  • An employee cannot be compensated for the unexpired remainder of a terminated contract, nor for future allowances and benefits, as such claims are speculative.
  • Filing a complaint with the Labour Office does not excuse an employee from responding to a show-cause notice or attending a disciplinary hearing.

Court orders

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  1. 1.The Cause is dismissed with costs.

Authorities

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Legislation

  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 45

Cases cited (1)

  • Bank of Uganda v Tinkamanyire
    [2008]UGSC
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act (Cause heard as a employment dispute; no specific provision quoted)

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, "Chandi v One Acre Fund (Cause 377 of 2018) [2022] KEELRC 1572 (KLR)", Case Analysis (2022). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1572/eng@2022-06-08

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