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ELRCPartially AllowedNot stated in the judgment text provided (Employment and Labour Relations Court cause)· [2023] KEELRC 711 (KLR)

Alumbe v Ideal Appliances Ltd (Cause 1050 of 2018) [2023] KEELRC 711 (KLR)

Employment and Labour Relations Court
16 March 2023
2,855 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, employed as a sales lady by the respondent, developed health complications (a stroke) in August 2017 and was placed on sick leave with full pay until October 2017, when her doctor recommended resumption on light duties. She reported to work but was told to await communication, and on 17th November 2017 her husband collected a termination letter citing her 'medical condition' and inability to meet the demands of her role. She sued for unfair termination, underpayment and terminal dues totalling Kshs 1,042,535.20. The parties recorded a partial consent settling salary underpayment, one month's salary in lieu of notice, leave balance, house allowance and salary for 17 days of November 2017, leaving general damages, costs and interest for determination. The court found the termination was on medical grounds and that the respondent breached the mandatory procedure in section 41(1) of the Employment Act by failing to give the claimant a hearing and failing to subject her to an independent medical assessment, despite a medical recommendation for light duties. The defence of abscondment failed because the termination letter did not allege desertion and abandonment cannot be presumed. The court rejected the respondent's reliance on the claimant's advocate's email conceding three months' compensation, holding it was not a consent order. The termination was declared unlawful and unfair; the claimant was awarded four months' salary (Kshs 116,676/-) as compensation, plus costs and interest at court rates from the date of judgment until full payment.

Key legal issues

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01

Whether the termination on medical grounds was lawful and procedurally fair

Holding

The termination was unlawful and unfair because the respondent failed to conduct an independent medical assessment and failed to afford the claimant the section 41(1) hearing, ignoring the medical recommendation for light duties

Reasoning

The court found the termination letter cited the claimant's poor health and inability to meet sales targets as the reason. Section 41(1) is a mandatory provision requiring explanation and presence of a fellow employee or representative. The respondent also failed to put the claimant through an independent medical assessment as required before termination on medical incapacity grounds, and disregarded the medical opinion that she could resume on light duties.

p. 6
02

Whether the claimant absconded from duty

Holding

The respondent failed to prove abandonment; the termination letter did not allege absconding, and desertion cannot be presumed

Reasoning

The respondent pleaded that the claimant failed to report back to work and absconded, but the termination letter itself cited 'medical condition' with no reference to abscondment. Absconding is gross misconduct under section 44(4), and the burden lay on the respondent to prove deliberate, unjustified absence and that it terminated on grounds of desertion. No such proof was tendered, so the abscondment defence failed.

p. 5
03

Effect of the claimant's advocate's email conceding three months' compensation

Holding

The email was not a consent order and did not cap the claimant's entitlement at three months' compensation

Reasoning

The respondent argued that an email from the claimant's advocate dated 12th July 2022 agreed to compensation of three months' salary, limiting any award. The court rejected this, holding that an advocate's email, even if written, is not a consent order and cannot bind the claimant or restrict the court's assessment of remedies.

p. 6

Legal principles established

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  • Before terminating an employee on grounds of physical incapacity or poor health, the employer must follow the mandatory procedure in section 41(1) of the Employment Act, including explaining the reasons to the employee in the presence of a fellow employee or shop floor union representative
  • An employer cannot terminate an employee on account of poor health without subjecting the employee to an independent medical assessment
  • Absconding/desertion must be deliberately and unjustifiably established by the employer; it cannot be presumed from equivocal acts
  • An employer has a duty to reasonably accommodate an employee who is injured or taken ill during employment, beyond grant and exhaustion of sick leave
  • An advocate's email conceding to a settlement figure is not a consent order binding on the claimant

Court orders

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  1. 1.Declaration that the termination of the claimant's employment was unlawful and unfair
  2. 2.Award to the claimant of the equivalent of 4 months' salary as compensation for unfair and unlawful termination, being Kshs 29,169 x 4 = Kshs 116,676/-
  3. 3.Award of costs of the suit to the claimant
  4. 4.Award of interest at court rates from the date of judgment until full payment

Authorities

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Legislation

  • Employment Actsection 41(1)
  • Employment Actsections 41, 43, 44 & 45
  • Employment Act 2007section 44(4)
  • Minimum salary wages general orderJuly 2013 wages order; June 2015 wages order

Cases cited (5)

  • Dennis Mwenda Gitonga vs Ernest Young LLP
    [2013] eKLR
  • Kennedy Nyanguncha Omanga vs Bob Morgan Services Limited
    [2013] eKLR
  • Sospeter Bungoya Oyange vs Bob Morgan Services Limited
    (2018) eKLR
  • Boniface Karagania V. Protective Custody Limited
    Cause no 243/2017
  • Kenya Plantation & Agriculture Workers Union Vs REA Vipingo Plantations Limited & Another
    (2015) eKLR
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court under the Employment Act 2007 (memorandum of 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, "Alumbe v Ideal Appliances Ltd (Cause 1050 of 2018) [2023] KEELRC 711 (KLR)", Case Analysis (2023). Not stated in the judgment text provided (Employment and Labour Relations Court cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/711/eng@2023-03-16

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