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ELRCPartially AllowedCause No 489 of 2016· [2023] KEELRC 181 (KLR)

Onyapidi v Market Masters Limited (Cause 489 of 2016) [2023] KEELRC 181 (KLR)

Employment and Labour Relations Court of Kenya
31 January 2023
3,245 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 with a valid reason to dismiss a security officer still lost because it skipped the required face-to-face disciplinary hearing.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from August 1999 and rising to Deputy Chief Security Officer earning Kshs 117,899 monthly, was summarily dismissed on January 12, 2016 for alleged negligence and insubordination. The dispute arose from the eviction of a tenant, German Point Limited, from the Village Market mall. While eviction was 75% complete, the tenant obtained a court order staying eviction, which the Claimant implemented by facilitating the tenant's re-entry without consulting the Directors, the Chief Security Officer or the Legal Department. The Respondent framed this as compromising mall security in a period of heightened terror threat after the Westgate attack. The Court framed two issues: fair procedure and valid reason under Sections 41, 43 and 45 of the Employment Act, and remedies. It held there was fair and valid reason for termination, as the Claimant acted unreasonably in allying himself with the tenant and disregarding management's security concerns. However, procedure was flawed: the Claimant was suspended and told to report on January 12, 2016 without being informed he faced a disciplinary hearing or the charges against him, and there was no record of a disciplinary hearing complying with Section 41. The Court declared termination fair in substance but flawed on procedure, therefore unfair. The Claimant was awarded 6½ months' salary (Kshs 766,343) as compensation, with notice pay refused because summary dismissal for gross misconduct was substantively justified. No order on costs; interest allowed at court rates from the date of judgment.

Key legal issues

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01

Validity of the reason for dismissal

Holding

There was fair and valid reason to justify termination - the Claimant's unilateral facilitation of a tenant's re-entry against the Respondent's security concerns

Reasoning

The Claimant was not a party to the tenancy dispute and was not directed by any court to enforce any order. Faced with two conflicting court orders, he failed to consult the Directors, the Chief Security Officer or the Legal Department. Given the Westgate terrorist attack and the mall's security concerns, his conduct amounted to negligence and gross misconduct under Section 44para 4 of the Employment Act.

p. 5
02

Fairness of the procedure followed

Holding

Procedure was flawed; the Claimant was suspended, told to report on a date, and dismissed without a recorded disciplinary hearing or specific charges

Reasoning

The suspension letter did not state that the report date would be a disciplinary hearing, nor specify the charges. There was no record of a disciplinary hearing, of charges being read, or of a Section 41 explanation of procedural rights. Oral physical hearing with the right to accompaniment is required; correspondence and a mere board meeting do not comply.

p. 5
03

Remedies

Holding

Compensation of 6½ months' salary awarded for procedural unfairness; notice pay refused

Reasoning

The Claimant served about 15 years and 5 months with an unblemished record, but contributed substantially to his departure, justifying a reduction from the 12 months sought. Notice pay was refused because summary dismissal for gross misconduct was substantively justified, and the Respondent confirmed it claimed nothing from him and no terminal benefits were paid.

p. 6

Legal principles established

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  • Reasons for termination are the matters the employer genuinely believed to exist at the time of termination
  • Section 41 of the Employment Act requires an oral disciplinary hearing where the employee may be accompanied by a colleague or trade union representative; hearings by correspondence do not suffice

Court orders

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  1. 1.It is declared that termination was fair in substance, but flawed on procedure, and therefore unfair
  2. 2.The Respondent shall pay to the Claimant equivalent of 6½ months’ salary in compensation for unfair termination at Kshs 766,343
  3. 3.No order on the costs
  4. 4.Interest allowed at court rate from the date of Judgment till payment in full

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43 (including Section 43[2])
  • Employment ActSection 44[4] (and Section 44[4][c])
  • Employment ActSection 45

Cases cited (5)

  • Abdi Satarhaji & Asha Mohammed v Omar Ahmed & Ali Ahmed Mohammed
    Civil Appeal No 51 of 2018
  • Shimmers Plaza Limited v National Bank of Kenya Limited
    [2015] eKLR
  • Co-operative Bank of Kenya Limited v Banking Insurance & Finance Union [K]
    [2017] e-KLR
  • Samuel Daniel Wafula v Kenyatta University
    [2016] e-KLR
  • Postal Corporation of Kenya v Andrew K Tanui
    [2019] e-KLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Sections 41, 43, 44 and 45) over a claim for unfair termination

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, "Onyapidi v Market Masters Limited (Cause 489 of 2016) [2023] KEELRC 181 (KLR)", Case Analysis (2023). Cause No 489 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/181/eng@2023-01-31

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