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Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in judgment (file heard together with ELRC Cause No. 54 of 2019 – Duncan Gitugo v CIC General Insurance Limited)· [2023] KEELRC 807 (KLR)

Mburu v CIC General Insurance Limited (Cause 53 of 2019) [2023] KEELRC 807 (KLR)

Employment and Labour Relations Court
27 March 2023
3,205 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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Kenya's Employment Court ruled CIC Insurance unfairly dismissed an employee because it withheld the investigation report before his disciplinary hearing.

What this practically means

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Executive summary

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In this first-instance ELRC claim heard at Mombasa together with ELRC Cause No. 54 of 2019 (Duncan Gitugo v CIC General Insurance Limited), the claimant, a Sacco Assurance Officer employed on August 14, 2013, sued CIC General Insurance Limited after summary dismissal on November 26, 2018 for allegedly circumventing motor vehicle claim assessment procedures with intent to defraud in connection with a claim over vehicle KBW 349G. He sought declarations of unfair termination and non-compliance with summary dismissal requirements, terminal dues, commissions, 12 months' compensation, a certificate of service, defamation damages and costs. The respondent maintained that due process was followed, that the claimant used another employee's computer and a conflicted agency to bypass claims procedures, and that the dismissal letter was only copied to internal officers. M. Mbaru J found that the claimant was taken through a disciplinary hearing without being given the investigations report, and that his employment contract did not disclose the applicable disciplinary rules or policy documents as required by section 12(1) of the Employment Act; he was also denied a right of appeal. The termination was therefore procedurally unfair and unlawful under section 45. The defamation claim failed for want of particularisation, copying senior officers not being defamatory. The court declared the termination unlawful and unfair, awarded notice pay of ksh.40,000 and compensation of ksh.120,000 (3 months' gross wage for 5 years' service), ordered issuance of a Certificate of Service, and awarded the claimant costs. Note: the judgment contains an internal figure inconsistency (ksh.12,000 vs ksh.120,000) and does not state the claimant's name or this file's cause number.

Key legal issues

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01

Procedural fairness in disciplinary process

Holding

The disciplinary process was unfair because the claimant attended the hearing without the investigations report and without the applicable policy documents having been issued to him; termination was therefore unlawful under section 45.

Reasoning

The court held that due process requires the employer to conduct investigations and share the outcome with the employee before a disciplinary hearing, citing section 41(2) of the Employment Act. The claimant's contract of employment contained no reference to policy documents as required by section 12(1), so the employer was exposed and the claimant could not be faulted for shop-floor practice. He was also denied a right of appeal contrary to section 45(5)(a).

p. 6
02

Defamation claim

Holding

The defamation claim failed; copying senior management officers on the dismissal letter was not defamatory and circulation to social media was not particularised or proved.

Reasoning

The court found that the respondent, as a corporate body, copied officers such as the Group CEO, MD and GM who legitimately needed to know; such sharing could not be defamatory. The claimant did not particularise how the letter reached social media, and his witness did not address defamation to the required standard.

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Remedies for unfair termination

Holding

Notice pay of ksh.40,000 under section 35, compensation of 3 months' gross wage under sections 45 and 49 for 5 years of service, and a Certificate of Service under section 51 were awarded.

Reasoning

On the finding that there was no due process, the court awarded notice pay based on the last gross wage of ksh.40,000 and compensation equivalent to three months' gross wage, taking into account the claimant's five years of service, and directed issuance of a Certificate of Service pursuant to section 51 of the Act.

p. 6

Legal principles established

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  • Part of due process before termination is that the employee be given the results of investigations before a disciplinary hearing so as to respond effectively.
  • The duty to issue and explain workplace policies and procedures vests in the employer and cannot be assumed to be known by the employee.
  • A denial of the right to be heard renders a decision null and void ab initio notwithstanding that the same result might have been reached.

Court orders

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  1. 1.A declaration that employment terminated unlawfully and unfairly
  2. 2.Compensation awarded at ksh.120,000
  3. 3.Notice pay ksh.40,000
  4. 4.A Certificate of Service shall issue
  5. 5.Costs of the suit to the claimant
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 35, 41, 45, 49 and 51)

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, "Mburu v CIC General Insurance Limited (Cause 53 of 2019) [2023] KEELRC 807 (KLR)", Case Analysis (2023). Not stated in judgment (file heard together with ELRC Cause No. 54 of 2019 – Duncan Gitugo v CIC General Insurance Limited). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/807/eng@2023-03-27

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