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ELRCPartially AllowedNot stated in the judgment as provided· [2022] KEELRC 4134 (KLR)

Korir v Bunson Travel Services Limited (Cause 160 of 2018) [2022] KEELRC 4134 (KLR)

Employment and Labour Relations Court
30 June 2022
2,801 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that signing a discharge voucher doesn't stop an employee from suing over unfair termination, awarding six months' salary.

What this practically means

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Executive summary

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The claimant was employed by the respondent as a sales and marketing executive on May 17, 2016 and confirmed in November 2016. She claimed that on August 2, 2017 the respondent proposed converting her employment contract to a service level agreement, and that on September 28, 2017 her employment was terminated for alleged poor performance without any disciplinary hearing, explanation or valid reasons, contrary to sections 41(1) and 45 of the Employment Act. She sought a declaration of unfair termination, 12 months' compensation (Ksh1,020,000), a certificate of service and costs. The respondent maintained that she under-performed, failed to meet targets and that due process, including prior warnings and sufficient time to improve, was followed. It also relied on a discharge voucher signed by the claimant when receiving terminal dues. The court framed the sole issue as whether the employment was unfairly terminated and the remedies due. It first held that the discharge voucher did not override the employee's statutory right under section 35(4)(a) to dispute the fairness of termination. On the merits, the court found no record of any hearing or performance appraisal; the contested meeting of August 2, 2017 was unrecorded, and the court preferred the employee's account. Applying section 41(1) and precedent on poor-performance terminations, it found the termination unfair and unjustified, contrary to sections 41, 43 and 45. The court awarded compensation of six months' salary (Ksh510,000) rather than the 12 months sought, a declaration of unfair termination, a certificate of service under section 51, and costs of the suit. Judgment was delivered in Nairobi on June 30, 2022 by M. Mbarũ, Judge.

Key legal issues

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01

Effect of the discharge voucher on the claim

Holding

The discharge voucher did not bar the claim; the employee's statutory right to dispute the fairness of termination survives execution of a discharge voucher.

Reasoning

The court contrasted the claimant's position (signing only accepted what was owed) with the respondent's reliance on Costal Brothers v Kimathi Mithika. Holding that a voucher does not override section 35(4)(a) of the Employment Act, the court held the right to dispute the lawfulness or fairness of termination does not cease or abate upon execution of the voucher, permitting inquiry into fairness.

p. 4
02

Whether termination for poor performance was procedurally fair and for valid reasons

Holding

Termination was unfair: no hearing, notice or representations were afforded, and no records of performance assessment were produced, contrary to sections 41, 43 and 45.

Reasoning

Section 41(1) requires the employer to explain reasons and hear the employee before terminating on grounds of poor performance. The respondent pleaded no effort to allow a hearing before the termination letter; the meeting of 2 August 2017 had no record. Following National Bank of Kenya v Samuel Nguru Mutonya and Professional Clean Care v Muthoka, the court found the process contrary to mandatory provisions and unfair.

p. 5
03

Remedies

Holding

Six months' salary as compensation (Ksh510,000) and a certificate of service were awarded; the 12 months sought was not granted.

Reasoning

Under sections 45 and 49 compensation is due upon a finding of unfair termination. Taking the claimant's gross monthly salary of Ksh85,000, the court considered six months' salary appropriate. A certificate of service was ordered under section 51 of the Employment Act.

p. 6

Legal principles established

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  • A discharge voucher executed by an employee does not override the employee's right to challenge the lawfulness or fairness of termination under section 35(4)(a) of the Employment Act.
  • An employer citing poor performance must follow due process: notify the employee, explain the reasons, and hear representations before termination.
  • Where an employer produces no record of a contested meeting, the court will believe the employee's account.

Court orders

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  1. 1.A declaration that the claimant's employment was terminated by the respondent unfairly
  2. 2.Compensation awarded at Ksh 510,000 (6 months' salary)
  3. 3.Costs of the suit to the claimant
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 41, 43, 45, 49, 51)

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, "Korir v Bunson Travel Services Limited (Cause 160 of 2018) [2022] KEELRC 4134 (KLR)", Case Analysis (2022). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/4134/eng@2022-06-30

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