Onduma v Bontana Hotel Nakuru t/a Rift Valley Adventures and Hotels (Cause 153 of 2015) [2023] KEELRC 16 (KLR)
The bottom line
#A Kenyan court awarded a hotel worker over Kshs 786,000 after finding his summary dismissal unfair because he was never given a hearing.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness under section 41 of the Employment Act
The dismissal was procedurally unfair as the Claimant was never given a hearing
The court examined the correspondence between the parties and found that although the Respondent levelled many complaints and issued warnings, the Claimant always responded, yet he was never accorded a disciplinary hearing before the summary dismissal of 10/4/2015. The CBA suspension/interdiction procedure (maximum 14 days with full pay pending investigations) was also not followed, the Claimant having been suspended from 10th January 2015 for about four months. Being condemned unheard rendered the dismissal unfair and unjustified.
Substantive justification for the dismissal
No valid reason was established for the summary dismissal
The Respondent asserted poor performance and rudeness to a guest as reasons for dismissal. However, the dismissal letter cited an incident of 10/1/2015 (arrogance to a customer in room 235 and alleged overcharging) which the Claimant had explained, the hotel price list indicating the underpant charge at Kshs 450. No investigation or hearing preceded the dismissal, so no valid reasons were established, satisfying the unfairness test under sections 41 and 45 of the Employment Act.
Entitlement to reliefs - notice, gratuity, underpayments and compensation
Claimant awarded notice pay, gratuity for 6 years, underpayments and 8 months' compensation
Having found the termination unfair, the court awarded three months' pay in lieu of notice, gratuity computed at 1/3 of salary plus 1/3 of house allowance per completed year under Article 27(b) of the CBA for 6 years, the pleaded underpayments of Kshs 443,448 (the CBA providing Kshs 25,800 basic salary with 13% house allowance, which the Respondent's own witness confirmed on cross-examination), and compensation of 8 months' salary under section 49(1)(c) of the Employment Act, using a monthly salary of Kshs 24,486.
Legal principles established
#- An employee must be given an opportunity to be heard before termination under section 41 of the Employment Act; failure renders dismissal unfair
- The CBA's suspension/interdiction procedure must be followed; a 4-month suspension without pay contrary to the 14-day limit breaches the CBA
- Summary dismissal without notice or hearing lacks valid reasons and is unfair
Court orders
#- 1.3 months pay in lieu of notice of Kshs 73,458
- 2.Gratuity for 6 years under Article 27(b) of the CBA of Kshs 48,972
- 3.Annual leave of Kshs 24,486
- 4.Underpayments as pleaded of Kshs 443,448
- 5.Compensation equivalent to 8 months salary for unfair termination of Kshs 195,888
- 6.Total award of Kshs 786,252 less statutory deductions
- 7.Respondent to pay costs of the suit plus interest at Court rates from the date of judgment
- Jurisdiction invoked
- Original employment and labour relations jurisdiction under the Employment Act and the CBA between the parties
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Onduma v Bontana Hotel Nakuru t/a Rift Valley Adventures and Hotels (Cause 153 of 2015) [2023] KEELRC 16 (KLR)", Case Analysis (2023). Not stated in the judgment (Amended Memorandum of Claim dated 4th May 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/16/eng@2023-01-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.