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ELRCPartially AllowedELRC Cause (Bungoma), Claim filed 13th July 2017· [2022] KEELRC 1576 (KLR)

Mudongoi v Mudete Factory Tea Growers Co-operative Savings and Credit Society Limited (Cause 27 of 2017) [2022] KEELRC 1576 (KLR)

Employment and Labour Relations Court
28 July 2022
3,225 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 can win on reasons for dismissal but still pay a year's salary for running an unfair disciplinary process.

What this practically means

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Executive summary

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The Claimant, formerly a savings clerk with the Respondent, sued for unlawful, unfair, wrongful and constructive termination, discrimination and loss of pregnancy following her suspension on 10th March 2016, arrest and arraignment before the Kakamega Chief Magistrate's court on a charge of stealing by servant, and eventual summary dismissal by letter dated 29th June 2017 after she failed to attend disciplinary hearings. The court framed four issues: validity of the reasons for termination, discrimination, procedural fairness, and entitlement to reliefs. On the first issue, the court found the Respondent proved valid reasons for the dismissal on a balance of probability under sections 43 and 47(5) of the Employment Act, the reasons being related to the Claimant's duties. The discrimination claim failed because no particulars were pleaded and no evidence was led, the Anarita Karimi precision test not being met; the loss of pregnancy claim also failed for want of proof. On procedural fairness, however, the court found the process violated Article 47 of the Constitution: the Claimant was suspended indefinitely without salary for over a year without communication, the disciplinary process only kicked off after her advocate's demand letter, and she was replaced before the dismissal letters issued. Prolonged suspension of more than six months without pay was held unfair. The court found constructive dismissal and awarded compensation equivalent of 12 months' salary (Kshs. 334,113/-) for the Article 47 violation, plus 10 days' unpaid salary for March 2016 (Kshs. 8,981.53/-), with interest at court rates and costs of the claim. Notice pay, leave pay and cost of the demand letter were disallowed, and the claims for discrimination damages and loss of pregnancy were refused. Judgment was delivered at Bungoma on 28th July 2022 by J. W. Keli, Judge.

Key legal issues

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01

Whether there were valid reasons for termination of the Claimant's employment

Holding

The Respondent proved valid reasons for the termination on a balance of probability, the reasons being related to the Claimant's duties

Reasoning

The Respondent, bearing the burden under sections 43 and 47(5) of the Employment Act, produced the show cause letters and summary dismissal letter listing the reasons: carelessly and improperly performing duty, involving herself in personal financial dealings with clients, suspicion of committing a criminal offence, insubordination and loss of fidelity bond. The court found these reasons proved on a balance of probability and related to the Claimant's duties.

p. 5
02

Whether there was discrimination and loss of pregnancy

Holding

The claim for discrimination and loss of pregnancy failed for want of particulars and evidence

Reasoning

The particulars of discrimination were not pleaded, no evidence was led on the allegation, and the Anarita Karimi precision test was not met. On loss of pregnancy, the document relied on (JMM8) was a caesarean section report showing a live infant and did not prove the allegation; the demand letter also made no such claim, so the court found no proof.

p. 5
03

Whether the termination was procedurally fair

Holding

The disciplinary and termination process was unfair and violated Article 47, amounting to constructive dismissal

Reasoning

The Claimant was suspended indefinitely without salary for over a year with no communication on the disciplinary process; the process only commenced after her advocate's demand letter of 13th December 2016, and she had already been replaced before the dismissal letters issued. Such an administrative process was neither fair nor expeditious contrary to Article 47, and prolonged suspension beyond six months without pay is unfair.

p. 7
04

Whether the Claimant is entitled to the reliefs sought

Holding

Compensation equivalent of 12 months' salary for violation of Article 47 and 10 days' unpaid salary awarded; notice pay, leave pay and cost of demand letter disallowed

Reasoning

Taking into account the period of service and the agony of waiting over a year on suspension without salary, the court found this a case deserving 12 months' salary as compensation for violation of constitutional rights under Article 47, since reinstatement was unavailable. Notice pay was refused as reasons for dismissal were justified; the leave claim was unproved; 10 days' salary for March 2016 was granted as the employer gave no evidence of payment.

p. 7

Legal principles established

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  • Under section 43 of the Employment Act, the employer bears the burden of proving the reasons for termination, failing which the termination is deemed unfair
  • A person alleging discrimination must plead with precision the particulars of the infringement per the Anarita Karimi test
  • The court will not interfere with an employer's internal disciplinary process where it is fair, but will meddle where the process is unfair and breaches the law or the employee's rights
  • Suspension of an employee for more than six months, and a fortiori more than one year without salary, is unfair

Court orders

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  1. 1.Compensation pay for unfair treatment at Kshs. 334,113/-
  2. 2.Unpaid salary for 10 days worked in March 2016, Kshs. 27,842.75 x 10/31 = Kshs. 8,981.53/- (above awards subject to statutory deductions)
  3. 3.Interest at court rates effective date of judgment
  4. 4.Costs of the claim

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 27
  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 47
  • Constitution of Kenya, 2010Article 50
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44(4)
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 46
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 5

Cases cited (3)

  • Anarita Karimi vs Republic (No.1)
    (1979) 1 KLR 154
  • Evelyne Anyango Obondo v Kenya Revenue Authority
    [2017] eKLR
  • Chrispin Otieno Pudo & 6 others v Kisumu County Public Service Board & another
    [2017] eKLR
Jurisdiction invoked
Articles 27, 41, 47 and 50 of the Constitution of Kenya, 2010 and the Employment Act, 2007 (employment and labour relations dispute)

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, "Mudongoi v Mudete Factory Tea Growers Co-operative Savings and Credit Society Limited (Cause 27 of 2017) [2022] KEELRC 1576 (KLR)", Case Analysis (2022). ELRC Cause (Bungoma), Claim filed 13th July 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1576/eng@2022-07-28

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