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ELRCPartially AllowedCause No 44 of 2019· [2023] KEELRC 1444 (KLR)

Nyagah v County Government of Embu & 2 others (Cause 44 of 2019) [2023] KEELRC 1444 (KLR)

Employment and Labour Relations Court
9 June 2023
5,025 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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An Embu County employee unfairly fired by the Governor won Kshs.3.1 million because only the County Public Service Board can discipline county officers.

What this practically means

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Executive summary

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The claimant, employed on 10th January 2018 as Chief of Staff and Head of the Governor's Delivery Unit in Embu County on a contract tied to the Governor's term, sued the County Public Service Board, the Governor and a third respondent after his contract was terminated on 4th December 2019 on account of alleged desertion of duty from July 2018. He sought declarations of unfair termination and rights violations, unpaid salary, salary for the 35-month unexpired contract term, gratuity, leave, compensation and a certificate of service. The respondents raised a jurisdictional objection based on section 77 of the County Government Act, contending the claimant should have appealed to the Public Service Commission, and denied liability of the Governor personally. The court held the Governor acted ultra vires in terminating a county public officer without the involvement of the County Public Service Board, and following the Kisumu County Public Service Board v Samuel Okuro decision held the ultra vires decision was not appealable to the PSC, upholding the court's jurisdiction. On the merits, the respondents called no witnesses; the claimant's documentary proof of attendance was unrebutted, so neither a valid reason nor fair procedure under sections 43, 41 and 45 of the Employment Act was established, and the stopping of his salary without hearing violated his rights under Articles 28, 41 and 47. However, the claim for salary for the unexpired term failed for want of an express contractual stipulation and proof. Judgment was entered against the 1st respondent for Kshs.3,140,308.00 (notice, 12 months' compensation, unpaid salary and gratuity), subject to statutory deductions, with costs and interest; the claims against the Governor and the 3rd respondent were dismissed.

Key legal issues

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01

Jurisdiction / exhaustion of remedies under section 77 of the County Government Act

Holding

The court has jurisdiction because the Governor acted ultra vires in terminating the claimant without the County Public Service Board, so the termination decision is not appealable to the PSC

Reasoning

The respondents objected that the claimant should have appealed to the Public Service Commission under section 77(1) and (2) of the County Government Act. Relying on Kisumu County Public Service Board v Samuel Okuro, the court held that a Governor who terminates a county public officer's contract without involving the County Public Service Board usurps the Board's role and acts ultra vires; a decision taken ultra vires is not appealable to the PSC, leaving the ELRC seized of jurisdiction to quash the unlawful termination.

p. 7
02

Validity of the reason for termination

Holding

The reason (absconding duty from 20th July 2018 to 16th October 2019) was not proved valid and fair

Reasoning

The termination letter alleged desertion of duty and drawing of salary in absentia. The claimant produced contemporaneous documents - a concept paper signed by the Governor, correspondence and memos - proving he was at work. The respondents closed their case without calling any witness, so their allegation was unrebutted, and they failed to discharge the burden under section 45(2)(a) and (b) of the Employment Act.

p. 8
03

Fairness of procedure under section 41 of the Employment Act

Holding

Procedure was unfair; the claimant was not accorded an oral hearing before termination

Reasoning

Section 41 mandates the employer to explain the reasons for contemplated termination in the presence of another employee or union representative and to hear and consider representations. Although a show cause letter was issued and responded to, the claimant was not invited to any oral hearing before the County Public Service Board or a committee, and no certificate of service was issued, breaching the mandatory procedure.

p. 9
04

Violation of fundamental rights (Articles 28, 41, 47 and 50)

Holding

The Governor's ultra vires action amounted to illegality and violation of the claimant's fundamental rights

Reasoning

Following the Kisumu County Public Service Board decision, failure to follow the disciplinary machinery under the County Government Act violated the claimant's fundamental rights. The court added that stopping salary without justification or prior hearing amounted to inhuman and degrading treatment and breached fair labour practices and fair administrative action under Articles 41 and 47.

p. 9
05

Entitlement to salary for unserved contract term

Holding

Not payable; claimant entitled only to section 49 compensation because the contract had no stipulation for payment of the unserved term

Reasoning

The court took judicial notice that the claimant's fixed term contract was tied to the Governor's term, ending August 2022. However, the appointment letter did not provide for salary for the unserved term upon premature termination, and the burden lay on the employee. Applying Mwachanya and Munyao, the court instead awarded the maximum 12 months' gross pay compensation, one month's notice pay, unpaid salary and one year's gratuity.

p. 10

Legal principles established

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  • Where termination of employment is done by a person acting ultra vires (without legal mandate), the decision is not appealable to the Public Service Commission and the ELRC has jurisdiction to quash the unlawful termination
  • A Governor lacks disciplinary power over a county public officer without the involvement of the County Public Service Board; a Governor's termination of such a contract is ultra vires
  • Payment of salary for the remainder of a fixed term contract depends on the intention of the parties; absent clear stipulation, compensation is guided by the maximum 12 months' gross pay under section 49 of the Employment Act
  • An employer who tenders no evidence to prove the reason for termination fails to establish a valid and fair reason under section 45 of the Employment Act

Court orders

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  1. 1.Declaration that the claimant's employment contract was terminated unfairly and unlawfully
  2. 2.1st respondent to pay one month salary in lieu of notice of Kshs.199,110.00
  3. 3.1st respondent to pay 12 months' gross salary compensation of Kshs.2,389,320.00
  4. 4.1st respondent to pay unpaid salary for October, November and 4 days of December 2019 of Kshs.424,768.00
  5. 5.1st respondent to pay gratuity of Kshs.127,110.00
  6. 6.Total award of Kshs.3,140,308.00 subject to statutory deductions
  7. 7.Claim against the 2nd respondent dismissed
  8. 8.Claim against the 3rd respondent dismissed
  9. 9.Claimant awarded costs of the suit plus interest at court rate

Authorities

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Legislation

  • Constitution of KenyaArticle 260
  • Constitution of KenyaArticles 28, 41, 50
  • Constitution of KenyaArticles 162(2), 234
  • Constitution of KenyaArticles 10, 232
  • Constitution of KenyaArticle 47
  • Employment ActSections 12, 35(1)(c), 41, 43, 44(3) and (4), 45, 49
  • County Government ActSections 77(1) and (2), 80, 133
  • Public Service Commission ActSections 80, 88(5)
  • Employment and Labour Relations Court (Procedure) RulesRule 28(3)

Cases cited (10)

  • Abdikadir Suleiman v County Government of Isiolo & Another
    (2016) eKLR
  • Kisumu County Public Service Board & another v Samuel Okuro & 7 others
    (2018) eKLR
  • Kenfreight (E.A) Ltd v Benson K. Nguti
    (2016) eKLR
  • Ruth Gathoni Ngotho Kariuki v Presbyterian Church of East Africa & another
    (2012) eKLR
  • Rodha Atemo Amukhuma & another v Executive Officer, Roads Bungoma County Government
    (2014) eKLR
  • William Muthee Muthami v Bank of Baroda
    (2014) eKLR
  • Registered Trustees of the Presbyterian Church of East Africa & another v Ruth Gathoni Ngotho
    (2017) eKLR
  • Jamii Bora Bank Ltd v Minnie Mbue
    (2021) eKLR
  • Jackson Maundu Munyao v Rolmill Ltd
    (2019) eKLR
  • Alphonce Maghanga Mwachanya v Operation 680 Ltd
    (2013) eKLR
Jurisdiction invoked
Article 162(2) of the Constitution and Section 12 of the Employment Act (Employment and Labour Relations Court Act) conferring exclusive jurisdiction over employment and labour relations disputes

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, "Nyagah v County Government of Embu & 2 others (Cause 44 of 2019) [2023] KEELRC 1444 (KLR)", Case Analysis (2023). Cause No 44 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1444/eng@2023-06-09

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