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ELRCPartially AllowedEmployment Cause (Claim filed against respondent, Criminal Case No. 4915 of 2014 referenced)· [2023] KEELRC 365 (KLR)

Joab v Store Sixty Six Limited (Cause 1951 of 2017) [2023] KEELRC 365 (KLR)

Employment and Labour Relations Court
10 February 2023
2,351 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan employer who fires an employee without evidence and a fair hearing must pay damages, even where theft is alleged.

What this practically means

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Executive summary

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The claimant, formerly a General Manager and branch manager of the respondent's Valley Arcade branch, sued for Kshs 2,085,000.00 alleging that her employment, which commenced in September 2013, was terminated in September 2014 without due process. The respondent asserted that she was summarily dismissed for stealing and manipulating its payment system, that she was charged in Criminal Case No. 4915 of 2014, and that she was given a hearing. The respondent failed to appear at the hearing on 11th October 2022 despite service and adduced no oral evidence, its case remaining as pleaded. The court framed two issues: whether the termination was unfair and unlawful, and entitlement to reliefs. Applying sections 41, 43 and 45 of the Employment Act, the court held that the employer bore the burden of proving both substantive justification and procedural fairness, a burden dischargeable only through evidence. With no termination letter, no audit or investigation report apportioning culpability, and no evidence of notice or hearing, the termination was found both substantively and procedurally unfair. On reliefs, the court awarded September 2014 salary (Kshs 120,000.00), two months' salary in lieu of notice (Kshs 240,000.00) per the contract, compensatory damages equivalent to two months' gross salary (Kshs 240,000.00), one year's leave (Kshs 84,000.00) and service pay (Kshs 60,000.00), totalling Kshs 744,000.00 with interest at court rates. Claims for commissions and unpaid public holidays were denied for want of proof, the claimant bearing the burden of establishing such specific claims. Following Patrick Lumumba Kimuyu v Prime Fuels (K) Limited and Rogoli Ole Manadiegi v General Cargo Services Limited, the court held that an employee must prove public holiday claims with specificity. Judgment was entered for the claimant with costs of the suit.

Key legal issues

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01

Substantive justification for termination

Holding

Termination was unfair as the respondent failed to discharge its evidential burden under sections 43(1) and 45(2)(a) and (b)

Reasoning

The employer had the heaviest responsibility of proving the reasons for termination on a balance of probabilities. It adduced no evidence, produced no termination letter, and did not avail the audit and investigation report apportioning culpability. The allegations of stealing by servant therefore remained unsubstantiated, rendering the termination unfair.

p. 3
02

Procedural fairness of termination

Holding

Termination was unlawful under section 45(2)(c) as the section 41 process was not followed

Reasoning

There was no evidence of a notice detailing the allegations to the claimant, no invitation to defend herself, and no proof that a hearing was conducted. The assertions of a hearing in the Memorandum of Response were unsupported by evidence, so the process contemplated under section 41 was not subjected to the claimant.

p. 4
03

Entitlement to reliefs

Holding

Salary, notice pay, compensatory damages, leave and service pay awarded; commissions and public holiday pay denied for want of proof

Reasoning

Compensatory damages of two months' gross salary factored in the length of employment and the employer's failure to prove reasons or fair process. Notice pay followed clause 20 of the contract. Leave was awarded since the employer did not avail leave records under section 74(1)(f), and service pay under section 35(5). Specific claims for commissions and public holidays required proof by the claimant.

p. 4

Legal principles established

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  • An employer bears the burden of proving both substantive justification and procedural fairness for termination under sections 41, 43 and 45 of the Employment Act, dischargeable only by evidence
  • An employee claiming unpaid public holidays or overtime bears the burden of establishing such days worked and how the figure claimed was arrived at

Court orders

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  1. 1.Salary for the month of September, 2014 being Kshs 120,000.00
  2. 2.Two month's salary in lieu of notice being the sum of Kshs 240,000.00
  3. 3.Compensatory damages in the sum of Kshs 240,000.00, being equivalent to 2 months of her gross salary
  4. 4.Leave for one year being the sum of Kshs 84,000.00
  5. 5.Service pay for one year being Kshs 60,000.00
  6. 6.Total award of Kshs 744,000.00 with interest at court rates from the date of Judgment until payment in full
  7. 7.The claimant shall have the costs of the suit

Authorities

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Legislation

  • Employment Actsections 41, 43, 45
  • Employment Actsection 43(1)
  • Employment Actsection 45(2)(a) and (b)
  • Employment Actsection 45(2)(c)
  • Employment Actsection 41(1)
  • Employment Actsection 74(1)(f)
  • Employment Actsection 35(5)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (2)

  • Patrick Lumumba Kimuyu v Prime Fuels (K) Limited
    [2018] eKLR
  • Rogoli Ole Manadiegi v General Cargo Services Limited
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

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, "Joab v Store Sixty Six Limited (Cause 1951 of 2017) [2023] KEELRC 365 (KLR)", Case Analysis (2023). Employment Cause (Claim filed against respondent, Criminal Case No. 4915 of 2014 referenced). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/365/eng@2023-02-10

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