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ELRCPartially AllowedMemorandum of Claim dated April 12, 2018 (ELRC, Nairobi)· [2023] KEELRC 1612 (KLR)

Oywa v Telecontact Limited (Cause 585 of 2018) [2023] KEELRC 1612 (KLR)

Employment and Labour Relations Court
30 June 2023
4,172 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court awarded a supervisor Kshs 700,000 because his employer fired him for fraud without proving it or following a fair process.

What this practically means

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Executive summary

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The claimant, employed by the respondent from November 1, 2014 as a Senior Agent and rising to Operations Supervisor, was terminated on December 15, 2017 on grounds of fraud after being accused of taking biometrics for unpaid premium lounge (VAS) applicants in breach of the respondent's Standard Operating Procedures. He claimed notice pay, compensatory damages, damages for loss of income to retirement, severance pay and a certificate of service, contending his termination was unfair and unprocedural. The respondent maintained the termination was for a valid reason following a fair disciplinary process. Stella Rutto J framed three issues: substantive justification, procedural fairness and entitlement to reliefs. On substance, the court found the allegations lacked crucial particulars - neither the affected applicants nor the dates of the alleged breaches were identified - so the respondent failed to discharge its burden under sections 43(1) and 45(2) of the Employment Act. On procedure, although the claimant answered an HR questionnaire and was suspended on full pay, he was not told that the December 14, 2017 meeting was a disciplinary hearing nor of his right to be accompanied, rendering the process unfair. The court declared the dismissal unfair and unlawful and awarded compensatory damages of Kshs 700,000 (five months' gross salary) with interest. Notice pay was refused as already paid, severance as inapplicable outside redundancy, and loss of income to retirement as contrary to settled law. The claimant also received costs and a certificate of service.

Key legal issues

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01

Substantive justification for termination

Holding

The respondent failed to prove a valid and fair reason; allegations lacked particulars (identity of applicants, dates) and the fraud was not substantiated

Reasoning

The termination letter and HR questionnaire did not identify the applicants whose biometrics were taken or the dates of the alleged breach. The statement of account of James Wachira Kiranga was not correlated to the claimant's case. Under sections 43(1) and 45(2) of the Employment Act, the employer had to prove the substance of the allegations to the requisite standard, which it failed to do.

p. 6
02

Procedural fairness under section 41

Holding

The process was procedurally unfair because the claimant was not told the December 14, 2017 meeting was a disciplinary hearing nor of his right to be accompanied, and the allegations were too general to allow a defence

Reasoning

Although the respondent initially issued a HR questionnaire and paid suspension, its communication was 'mysterious' about the disciplinary hearing. The claimant did not know he faced termination and could not prepare psychologically or bring a fellow employee. Vague allegations also undermined his ability to defend himself, rendering the process unfair contrary to section 41.

p. 7
03

Quantum of reliefs

Holding

Compensatory damages of five months' gross salary awarded; notice pay, severance and anticipatory earnings refused

Reasoning

Having found the termination substantively and procedurally unfair, the court awarded compensatory damages considering the length of employment. Notice pay had been paid; severance applies only to redundancy; and anticipatory earnings to retirement are not payable in law per the Court of Appeal in D K Njagi Marete v Teachers Service Commission.

p. 7

Legal principles established

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  • Failure of an employer to specify the particulars of an allegation against an employee amounts to failure to substantiate the allegation
  • An employer must prove valid and fair reasons under sections 43(1) and 45(2) of the Employment Act before termination
  • An employee must be notified of the significance of a meeting that turns out to be a disciplinary hearing so he can prepare, and must be told of his right to be accompanied

Court orders

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  1. 1.A declaration that the claimant's dismissal was unfair and unlawful
  2. 2.Compensatory damages in the sum of Kshs 700,000.00 being equivalent to five (5) months of his gross salary
  3. 3.Interest on the compensatory damages at court rates from the date of Judgment until payment in full
  4. 4.The claimant shall have the costs of the suit
  5. 5.Certificate of Service to issue within 30 days from the date of Judgment

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 43(1) and section 43
  • Employment Actsection 45(2)(a), (b) and (c)
  • Employment Actsection 44(4)(g)
  • Employment Actsection 40(1)(g)
  • Employment Actsection 51(1)
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (8)

  • Cooperative Bank of Kenya Limited v Banking Insurance & Finance Union (K)
    (2017) eKLR
  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 others
    (2019) eKLR
  • Thomas Sila Nzivo v Bamburi Cement Limited
    (2014) eKLR
  • Ol Pejeta Ranching Limited v David Wanjau Muhoro
    [2017] eKLR
  • Nebert Mandala Ombajo v Institute of Certified Public Accountants of Kenya (ICPAK)
    Nakuru Civil Appeal No. 62 of 2018
  • D K Njagi Marete v Teachers Service Commission
    [2020] eKLR
  • Elizabeth Wakanyi Kibe v Telkom Kenya Ltd
    [2014] eKLR (Civil Appeal No 25A of 2013)
  • Engineer Francis N Gachuri v Energy Regulatory Commission
    [2013] eKLR (Industrial Cause No 203 of 2011)
Jurisdiction invoked
Employment and labour relations jurisdiction under the Employment Act, 2007

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, "Oywa v Telecontact Limited (Cause 585 of 2018) [2023] KEELRC 1612 (KLR)", Case Analysis (2023). Memorandum of Claim dated April 12, 2018 (ELRC, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1612/eng@2023-06-30

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