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ELRCPartially AllowedNot stated in the judgment· [2023] KEELRC 1671 (KLR)

Kenya Union of Commercial, Food and Allied Workers v Naivas Limited (Cause E029 of 2021) [2023] KEELRC 1671 (KLR)

Employment and Labour Relations Court
29 June 2023
1,517 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 ruled Naivas unfairly fired a cashier for absenteeism because it denied him a hearing with a union representative present.

What this practically means

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Executive summary

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The claimant, a registered trade union, brought an unfair termination claim on behalf of its grievant, Samwel Chege, a shop attendant later confirmed as a cashier employed by the respondent supermarket from 19 March 2010 until his summary dismissal, last earning Ksh 32,725 per month. The claim arose from absences on 12, 14, 21 and 24 January 2019, which the grievant said were approved off days and sick leave, while the respondent maintained the absences were without permission and attracted prior warnings. The respondent called its branch manager, who testified that the grievant admitted the absences and produced no sick-off sheets. The court held that although absenteeism without permission is a serious breach justifying summary dismissal under Section 44(3) and (4)(a) of the Employment Act, the employer must still comply with the mandatory hearing requirements of Section 41. The disciplinary meeting of 21 March 2019 did not include an employee representative or union representative, compromising the process and rendering the termination unfair. On remedies, the court awarded notice pay at the last wage, three months' gross wage compensation for the over nine years of service (Ksh 98,175), and unpaid leave days of Ksh 15,583.33, since the respondent produced no record of payment or taking of leave. Severance pay was refused as not a Section 40 claim, and the insurance refund claim failed for lack of evidence of how it arose. A certificate of service was ordered under Section 51, and costs were assessed at Ksh 20,000 all inclusive.

Key legal issues

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01

Procedural fairness under Section 41 of the Employment Act

Holding

The termination was procedurally unfair because the grievant was not given notice to attend the hearing with a union representative or a fellow employee of his choice

Reasoning

The court found that although a meeting was held on 21 March 2019 with the cashier, manager and customer care officers, the minutes did not show the presence of an employee appointed by the grievant or a representative of the claimant union. Section 41 is mandatory and applies regardless of the reasons for termination. Its breach compromised the hearing and rendered the summary dismissal unfair, notwithstanding the alleged absenteeism.

p. 3
02

Substantive justification for summary dismissal for absenteeism

Holding

Absenteeism without permission is a serious breach justifying summary dismissal under Section 44(3) and (4)(a), but the lack of a Section 41 hearing defeats the dismissal

Reasoning

The court acknowledged that an employee who absents himself from work commits a serious breach justifying summary dismissal under Section 44(3) and (4)(a) of the Employment Act. However, even where serious offences justify summary dismissal, the employer must still accord the employee a hearing. The failure to abide the mandatory provisions was not justified.

p. 2
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Remedies for unfair termination

Holding

Notice pay at the last wage, three months' gross wage compensation, unpaid leave days and a certificate of service awarded; severance and insurance refund refused

Reasoning

Taking into account the grievant's over nine years of service, three months' gross wage was found appropriate as compensation. Notice pay was due at the last wage of Ksh 32,725. The unpaid leave claim succeeded because the respondent produced no record showing the leave was paid or taken. Severance pay was refused as not being a Section 40 claim, and the insurance refund claim was unsupported.

p. 3

Legal principles established

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  • An employer must, before terminating employment for misconduct, explain the reasons to the employee and accord the employee a hearing in the presence of another employee or a shop floor union representative of their choice, as required by Section 41 of the Employment Act
  • Where a disciplinary hearing omits the mandatory presence of an employee's chosen representative, the hearing is compromised and the resulting summary dismissal is unfair

Court orders

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  1. 1.Judgment entered for the claimant against the respondent
  2. 2.Compensation of Ksh 98,175
  3. 3.Notice pay of Ksh 32,725
  4. 4.Unpaid leave days of Ksh 15,583.33
  5. 5.Certificate of service to issue in accordance with Section 51 of the Employment Act
  6. 6.Costs assessed at Ksh 20,000 all inclusive

Authorities

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Legislation

  • Employment Act, 2007Section 41 (including s.41(1))
  • Employment Act, 2007Section 42(1)
  • Employment Act, 2007Section 44(3) and (4)(a)
  • Employment Act, 2007Section 40
  • Employment Act, 2007Section 51

Cases cited (2)

  • Kenya Union Of Commercial Food And Allied Workers v Meru North Farmers Sacco Limited
    [2014] eKLR
  • Oyombe v Eco Bank Limited
    (Civil Appeal 185 of 2017) [2022] KECA 540 (KLR) (13 May 2022)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (unfair termination of employment claim)

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, "Kenya Union of Commercial, Food and Allied Workers v Naivas Limited (Cause E029 of 2021) [2023] KEELRC 1671 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1671/eng@2023-06-29

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