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ELRCDismissedNot stated in the judgment (Memorandum of Claim dated 7th July 2020)· [2023] KEELRC 2218 (KLR)

Matundura v Ashut Engineers Limited (Cause 291 of 2020) [2023] KEELRC 2218 (KLR)

Employment and Labour Relations Court
28 September 2023
3,552 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court upheld an executive's dismissal for negligence, ruling that senior employees cannot blame their supervisors for their own errors.

What this practically means

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Executive summary

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The Claimant, formerly Supply Chain Manager of the Respondent, sued for constructive, wrongful, unfair and unlawful termination coupled with discrimination and harassment, seeking 12 months' salary in compensation, two months' notice pay, general damages of Kshs. 5,000,000 for discrimination and harassment, and two years' variable pay. She was summarily dismissed by letter dated 31st January 2020 for negligence in conducting mid-year and end-year performance reviews using KPIs different from those agreed with her team. She blamed her supervisor, Edward Okelo, for failing to cross-check the KPIs, and alleged discrimination on the ground that Okelo earned a higher salary and faced only parallel disciplinary process. The Court framed two issues: whether the dismissal was lawful and fair, and whether the Claimant was entitled to the remedies sought. Applying Section 43 of the Employment Act and the reasonable responses test, the Court found the Claimant's admitted use of wrong KPIs amounted to negligence justifying dismissal; her senior position imposed a direct duty of care and her supervisor's oversight did not absolve her, particularly while she was on a performance improvement plan. Procedural fairness under Section 41 was satisfied through the show cause notice, her response and her full participation in the disciplinary hearing. All heads of claim failed and the variable pay claim was unproved. The entire claim was dismissed, with each party bearing their own costs. Judgment delivered virtually at Nairobi on 28th September 2023 by Linnet Ndolo, Judge.

Key legal issues

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01

Whether the Respondent had a valid reason for dismissal under Section 43 of the Employment Act

Holding

Yes - the Claimant admitted using wrong KPIs in performance reviews, amounting to negligence of duty justifying summary dismissal

Reasoning

Section 43 places the burden on the employer to prove reasons for termination, applying the reasonable responses test. The Claimant admitted using KPIs different from those agreed with her team. Though she blamed her supervisor, the Court held her senior position imposed a direct duty of care, and being on a PIP heightened her obligation. The employer genuinely believed the grounds existed.

p. 8
02

Whether procedural fairness under Section 41 was observed

Holding

Yes - the Claimant received a show cause notice, responded, participated in a disciplinary hearing, and no formal objection was raised

Reasoning

Section 41 requires explanation, hearing and consideration of representations before termination. The Claimant was issued a show cause letter, responded on the same day, was invited to and fully participated in a disciplinary hearing, and raised no formal objection. The appellate remedy was also available and pursued. Procedural fairness was therefore satisfied.

p. 8
03

Whether the Claimant was entitled to the remedies sought

Holding

No - all heads of claim failed as the dismissal was lawful and fair and variable pay was unproved

Reasoning

Having found valid reason and fair procedure, the compensation, notice pay and general damages claims collapsed. The variable pay claim was not proved. The discrimination and harassment allegations were subsumed in the finding that the dismissal was lawful and the Claimant's grievances centred on the PIP rather than the dismissal itself.

p. 8

Legal principles established

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  • Fairness of termination requires both a valid reason and due process
  • A senior employee's culpability is not diminished by a supervisor's failure to catch the employee's error
  • The court will not substitute its own reasonable grounds for those of the employer in unfair termination claims

Court orders

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  1. 1.The entire claim by the Claimant is dismissed
  2. 2.Each party to bear their own costs

Authorities

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Legislation

  • Employment ActSection 43 (Proof of reason for termination)
  • Employment ActSection 41 (Notification and hearing before termination on grounds of misconduct)
  • Employment ActSection 44(4)(c)

Cases cited (5)

  • Bamburi Cement Limited v Farid Aboud Mohammed
    [2016] eKLR
  • British Leyland UK v Swift
    [1981] IRLR 91
  • CFC Stanbic Bank Limited v Danson Mwashako Mwakuwona
    [2015] eKLR
  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 others
    [2019] eKLR
  • Shariffu Mike Omondi v Ranfer Teas (Kenya) Limited
    [2021] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance 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, "Matundura v Ashut Engineers Limited (Cause 291 of 2020) [2023] KEELRC 2218 (KLR)", Case Analysis (2023). Not stated in the judgment (Memorandum of Claim dated 7th July 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2218/eng@2023-09-28

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