Gitugo v CIC General Insurance Limited (Cause 54 of 2019) [2023] KEELRC 801 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Lawfulness and procedural fairness of the summary dismissal
The summary dismissal was unlawful and unfair; the claimant was dismissed without an investigations report and due process lapsed.
The claimant was served a show cause notice over alleged fraud, replied denying the allegations, was sent on compulsory leave, and then dismissed without the investigations report being availed to him. At the disciplinary hearing no other employee would accompany him given the fraud allegations. The Insurance Regulatory Authority investigated and found the motor vehicle claim genuine, and the respondent paid it, undermining the fraud basis for dismissal. The court therefore found the due process lapsed and the termination unfair.
Entitlement to notice pay and compensation
The claimant was awarded notice pay equal to one month's gross salary (Ksh 108,535.45) and compensation for three months (Ksh 325,615.35) rather than the 12 months sought.
The court confined compensation to three months of the claimant's gross salary of Ksh 108,538.45, computed at Ksh 325,615.35, together with notice pay. Though 12 months' compensation was sought, the judgment does not explain the reduction, indicating the court's assessment of an appropriate remedy on the facts.
Legal principles established
#- A certificate of service must be issued to a terminated employee under Section 51 of the Employment Act.
- Dismissal without an investigations report and without adherence to due process renders termination unfair, warranting notice pay and limited compensation.
Court orders
#- 1.A declaration that employment terminated unlawfully and unfairly
- 2.Compensation awarded at Ksh 325,615.35
- 3.Notice pay of Ksh 108,535.45
- 4.Certificate of Service to issue
- 5.Costs of the suit to the claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act over unfair termination of employment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Gitugo v CIC General Insurance Limited (Cause 54 of 2019) [2023] KEELRC 801 (KLR)", Case Analysis (2023). ELRC Cause (Mombasa), heard alongside Cause No 53 of 2019 – James Collins Mburu v CIC General Insurance Limited. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/801/eng@2023-03-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.