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ELRCPartially AllowedAppeal No E023 of 2021· [2023] KEELRC 573 (KLR)

Wilson v Imarisha Mabati Limited (Appeal E023 of 2021) [2023] KEELRC 573 (KLR)

Employment and Labour Relations Court
9 March 2023
2,217 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court confirmed that firing a woman one month after maternity leave, without reasons, was pregnancy discrimination worth Kshs. 500,000.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Kisumu against a Trial Court judgment of 16th June 2021 which had declared the Appellant's termination unfair and unlawful and awarded her two months' salary as compensation, costs and interest. The Appellant, employed on 14th May 2018 and placed on six months' probation, proceeded on maternity leave just as her probation ended and was terminated on 29th March 2019, one month after resuming duty, with no reasons stated in the termination letter. She appealed, seeking twelve months' salary as compensation and damages for discrimination on account of pregnancy; the Respondent sought a finding that the termination of a probationary contract was fair and a reduction of the award. The court, guided by the first-appeal duty to re-evaluate the evidence, found that the alleged extension of the probation was not proved since the email said to communicate it was never produced; the contract was therefore not probationary, and even a probationary employee enjoys the statutory right not to be unfairly terminated. The finding of unfair termination was upheld, as was the two months' compensation award, the court declining to interfere with the Trial Court's discretionary assessment based on the short length of service. The court also upheld the Trial Court's finding that the termination was on account of pregnancy, in violation of Article 27 of the Constitution, and, the Trial Court having made no award despite that finding, awarded Kshs. 500,000/- as damages for discrimination. The Respondent was ordered to bear the costs of the appeal.

Key legal issues

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01

Whether the Appellant's contract was probationary

Holding

The Appellant's contract was not probationary; the alleged extension of probation was not proved

Reasoning

The Appellant had completed her six months' probation before proceeding on maternity leave. The Respondent alleged the probation was extended for a further six months, but the email said to communicate the extension was never produced, and the Appellant did not admit the purported oral discussion. The extension was therefore unproved, and the Appellant was entitled to full procedural fairness and substantive reasons, which were not given.

p. 4
02

Whether the termination was unfair and unlawful

Holding

The Trial Court's finding of unfair and unlawful termination was upheld

Reasoning

The termination letter gave no reasons. The Respondent alleged poor performance, but led no evidence of any performance evaluation policy or practice, and no opportunity to be heard was shown. The court held that even a probationary employee enjoys the statutory right not to be unfairly terminated, and the Appellant's right under sections 41, 43 and 45 of the Employment Act was violated.

p. 4
03

Whether the Appellant was discriminated against on account of pregnancy and entitled to damages

Holding

The finding of discrimination was upheld, and damages of Kshs. 500,000/- were awarded since the Trial Court made no award despite finding discrimination

Reasoning

The Appellant was terminated one month after returning from maternity leave, with no reasons given and no evidence of redundancy affecting others; her position was filled immediately. The court concluded the termination was pre-determined and premised on her pregnancy, violating Article 27 of the Constitution, and, the Trial Court having awarded nothing for discrimination, awarded Kshs. 500,000/-.

p. 5
04

Whether the award of two months' salary should be enhanced to twelve months

Holding

The two months' award was upheld and enhancement refused

Reasoning

Compensation under section 49 of the Employment Act is discretionary, guided by the statutory factors including length of service. The Trial Court based the two months' award on the Appellant's short time in service. Being an exercise of discretion, the appellate court found no basis to set it aside or interfere with it.

p. 4

Legal principles established

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  • An employee on probation is entitled to procedural fairness and substantive reasons for termination; the right not to be unfairly terminated cannot be abrogated merely because the employee is on probation
  • An employer relying on poor performance bears a high level of proof and must show a policy or practice for measuring performance

Court orders

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  1. 1.The Trial Court's finding that the Appellant was unfairly terminated is upheld
  2. 2.The Trial Court's award of 2 months' salary as compensation for unfair termination is upheld
  3. 3.An award of Kshs. 500,000/- in damages for discrimination
  4. 4.The Respondent will bear the costs of the appeal

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 42
  • Employment ActSections 43 and 45
  • Employment ActSection 45(1) and (2)
  • Employment ActSection 35(5)
  • Employment ActSection 49(4)
  • Constitution of Kenya, 2010Article 27

Cases cited (8)

  • Abok James Odera t/a A.J Odera & Associates v John Patrick Machira t/a Machira & Co. Advocates
    [2013] eKLR
  • Meru Multi-Purpose Co-operative Society Limited v Jeremy Kirimi
    [2022] eKLR
  • Simon N. Mwaniki & 25 others v Permanent Secretary Ministry of Defense & 3 others
    [2018] eKLR
  • Jane Samba Mukala v Oltukai Lodge Limited
    Industrial Cause No. 823 of 2010
  • Alphonce Maghanga Mwachanya v Operation 680 Limited
    [2013] eKLR
  • Kenya Ports Authority v Festus Kipkorir Kiprotich
    [2014] eKLR
  • Kenfreight (E.A.) Limited v Benson K. Nguti
    [2016] eKLR
  • Claudine Wanjiku Mboce v Exon Investment Limited & another
    Cause No. 619 of 2015
On appeal from
Trial Court (magistrates' court, Employment and Labour Relations cause)
Not stated
Jurisdiction invoked
First appellate jurisdiction over the Trial Court's judgment of 16th June 2021 (Employment and Labour Relations Court)

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, "Wilson v Imarisha Mabati Limited (Appeal E023 of 2021) [2023] KEELRC 573 (KLR)", Case Analysis (2023). Appeal No E023 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/573/eng@2023-03-09

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