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ELRCPartially AllowedNot stated in judgment· [2023] KEELRC 1611 (KLR)

Anyango v Nairobi Academy (H) Limited (Cause 1119 of 2017) [2023] KEELRC 1611 (KLR)

Employment and Labour Relations Court
30 June 2023
2,717 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded a former employee six months' salary because her employer gave a vague reason and no hearing before firing her.

What this practically means

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Executive summary

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The claimant, employed by the respondent from January 4, 2000 as Head of Catering and Housekeeping, sued for unfair termination following a letter of termination dated March 8, 2017 issued after she returned from a two-month medical absence (December 2016 to January 2017). She sought gratuity, notice pay, salary for nine days worked in March 2017, compensatory damages, general damages, a certificate of service and costs. The respondent contended she absconded duty, performed poorly, and that termination complied with her contract, invoking section 44(4) of the Employment Act. The court framed three issues: justifiable reason, procedural fairness, and entitlement to reliefs. On substance, it held that the termination letter's stated reason - 'after review of various aspects of your work' - was too vague to be tested for validity and fairness under sections 43(1) and 45(2)(a) and (b); notably, the letter never cited the unexplained absence, and the employer's continued payment of salary suggested it had waived any disciplinary action over the absence. On process, no hearing or notice to respond was given, breaching the mandatory requirements of section 41, rendering the termination procedurally unfair under section 45(2)(c). The court awarded compensatory damages of Kshs 351,840 (six months' gross salary) with interest, and costs to the claimant. Claims for notice pay and March 2017 salary were declined as already paid, and gratuity was declined for want of contractual or CBA basis. Judgment delivered at Nairobi on June 30, 2023 by Stella Rutto, J.

Key legal issues

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01

Whether there was a justifiable (substantively fair and valid) reason for termination

Holding

No - the respondent failed to discharge its evidential burden; the stated reason was vague and the termination was substantively unfair

Reasoning

The termination letter cited only 'a review of various aspects of your work' without specifying the dissatisfaction. Although the claimant's two-month absence was unexplained (she did not prove she notified the employer or supplied medical evidence), the employer paid her salary throughout and the letter never cited absence as the reason. The reason could not be tested against the validity and fairness requirements of sections 43(1) and 45(2)(a) and (b).

p. 4
02

Whether the claimant was accorded procedural fairness before termination

Holding

No - no notice to respond or hearing was given; termination was procedurally unfair under section 45(2)(c) read with section 41

Reasoning

Section 41 requires an employer to explain reasons and hear the employee's representations before termination on grounds of misconduct, poor performance or incapacity. There was no evidence of any notice requiring the claimant to respond or any forum in which she could state her case. The court treated section 41 as mandatory, following Postal Corporation of Kenya v Andrew K Tanui.

p. 5
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What reliefs the claimant is entitled to

Holding

Compensatory damages of six months' gross salary (Kshs 351,840) with interest and costs; notice pay, March 2017 days and gratuity declined

Reasoning

Having found both substantive and procedural unfairness, the court exercised its discretion under the Employment Act to award six months' gross salary as compensation, factoring in the length of service and the circumstances of termination. Notice pay and days worked were already paid; gratuity was not shown to be contractually or CBA-based.

p. 5

Legal principles established

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  • An employer must prove a valid and fair reason for termination under sections 43(1) and 45(2)(a) and (b) of the Employment Act; a vague reason cannot pass the validity and fairness test
  • Compliance with section 41 of the Employment Act (notice to respond and a hearing) is mandatory before termination
  • An employee claiming sick leave must notify the employer of the absence and its reasons as soon as reasonably practicable to be entitled to sick leave

Court orders

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  1. 1.Judgment entered in favour of the claimant against the respondent
  2. 2.Compensatory damages of Kshs 351,840.00, equivalent to six months' gross salary
  3. 3.Interest on the award at court rates from the date of Judgment until payment in full
  4. 4.Costs of the suit to the claimant

Authorities

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Legislation

  • Employment ActSection 43(1)
  • Employment ActSection 45(2)(a) and (b)
  • Employment ActSection 45(2)(c)
  • Employment ActSection 41
  • Employment ActSection 30(1) and (2)
  • Employment ActSection 44(4)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (5)

  • Mary Chemweno Kiptui v Kenya Pipeline Company Limited
    [2014] eKLR
  • Gibson D Mwanjala v Kenya Revenue Authority
    [2015] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Naima Khamis v Oxford University Press (EA) Limited
    [2017] eKLR
  • Postal Corporation of Kenya vs Andrew K Tanui
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (no specific provision cited in the judgment)

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, "Anyango v Nairobi Academy (H) Limited (Cause 1119 of 2017) [2023] KEELRC 1611 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1611/eng@2023-06-30

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