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ELRCPartially AllowedNot stated in judgment

Keiyo v Moi Educational Centre (Cause 104 of 2019) [2023] KEELRC 2378 (KLR)

Employment and Labour Relations Court
28 September 2023
3,843 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded a teacher Ksh. 1.21 million after her school dismissed her unfairly during a restructuring, because it skipped required consultation and denied her a representative at the disciplinary hearing.

What this practically means

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Executive summary

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The claimant, a teacher employed by the respondent since 2008 and promoted to Senior Teacher (Upper Primary) and later Acting Deputy Principal, sued over her summary dismissal on 28 February 2019. Her position was abolished in a January 2019 restructuring without consultation; she was directed to hand over to a new Senior Teacher, demoted to teaching lower classes, given two months' notice to vacate her school house, suspended for alleged failure to hand over, and ultimately summarily dismissed for gross misconduct. Her chosen representative was denied access to the board's disciplinary hearing. The court framed three issues: whether termination was unfair; whether remedies should issue; and costs. It held that restructuring implicates Section 40 of the Employment Act as redundancy and requires consultation under Section 10(5), observing that employees are not chattels. The disciplinary process breached Section 41 because the claimant's representative was barred; any lapse in this mandatory requirement negates the entire process. No discrimination was established - the flaw was unfair labour practice rather than discrimination. The dismissal was found procedurally unfair and unjustified under Section 45. Judgment was entered for the claimant with a declaration of unfair termination, compensation of Ksh. 1,100,000 (ten months' salary), notice pay of Ksh. 110,000, and costs. Claims for diminished employability damages, exemplary damages and constitutional damages were refused as addressed by the compensation awarded. The file was returned to the ELRC Nairobi Registry.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether there was unfair, unlawful and wrongful termination of employment
  2. 2.Whether the remedies sought should issue
  3. 3.Who should pay costs

Key legal issues

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01

Whether the restructuring and reshuffling of the claimant's position without consultation was lawful

Holding

The restructuring without notice or consultation breached Section 10(5) of the Employment Act; employees are not chattels and changes must not be arbitrary

Reasoning

The court held that an employer's prerogative to restructure is subject to mandatory consultation under Section 10(5), and the employee must be informed of the reasons for and extent of restructuring under Section 45(2). The claimant was affected by a policy change without notice or reasonable cause to appreciate the circumstances, rendering the process flawed.

p. 5
02

Whether the summary dismissal for gross misconduct (failure to hand over) was justified

Holding

The dismissal was procedurally unfair; the claimant's rights under Sections 41(1) and 41(2) were violated when her chosen representative was denied access to the disciplinary hearing

Reasoning

Section 41 entitles an employee to explanation of grounds of termination and to have a representative present. The respondent's witness could not explain why the representative was denied attendance. Objectively reviewed, a warning should have sufficed for the incomplete handover; the summary dismissal was harsh and couched to remove her from employment.

p. 6
03

Whether the claimant was discriminated against and her constitutional rights violated

Holding

No discrimination was established; the grievance was a flawed process amounting to unfair labour practices rather than discrimination

Reasoning

The court found that what existed was not discrimination but a flawed process resulting in unfair labour practices. Fairness depends on the circumstances of each case and involves a value judgment, per the Court of Appeal in Bomas of Kenya v Thiriku. The alleged violations are addressed within the unfair termination claim.

p. 7
04

What remedies are due

Holding

Notice pay of Ksh. 110,000 and ten months' compensation of Ksh. 1,100,000 awarded; other damages refused

Reasoning

The claimant earned Ksh. 110,000 at exit, due as notice pay. Having served from 2008 to 2019, ten months' gross salary was found appropriate under Section 49. The diminished employability claim was refused as she secured alternative employment as a head teacher, and constitutional damages were subsumed in the unfair termination finding.

p. 7

Legal principles established

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  • Restructuring or reshuffling of employees that affects employment implicates the mandatory provisions of Section 40 of the Employment Act and constitutes redundancy
  • Any change or revision of employment terms requires consultation with the employee under Section 10(5) of the Employment Act
  • An employee's right under Section 41(1) to have a representative of their choice at a disciplinary hearing is couched in mandatory terms; denying access to that representative negates the entire disciplinary process
  • What constitutes fair labour practices depends on the circumstances of each case and involves a value judgment

Court orders

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  1. 1.A declaration that the respondent terminated the claimant's employment unfairly
  2. 2.Compensation awarded at Ksh. 1,100,000
  3. 3.Notice pay Ksh. 110,000
  4. 4.Costs of the suit to the claimant
  5. 5.The file shall be returned to ELRC Nairobi Registry

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations disputes (Employment Act, 2007 claims)

Relief refused

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Damages for diminished employability for 10 years (Ksh. 15,060,000)

Addressed by the compensation awarded; claimant secured alternative employment

p. 7

Exemplary/aggravated damages

Not awarded; claim subsumed in compensation for unfair termination

Damages for violation of fundamental rights and freedoms (Ksh. 5,000,000)

Court found the grievance was unfair labour practices, addressed within the unfair termination claim, not a separate constitutional violation

p. 7

Costs

Costs of the suit awarded to the claimant

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Accordingly, judgment is hereby entered for the claimant against the respondent in the following terms; a. a declaration that the respondent terminated the claimant's employment unfairly; b. Compensation awarded at Ksh. 1,100,000; c. Notice pay Ksh. 110,000; d. Costs of the suit.
p. 7Final orders/disposition
employees are not chattels. The decision to restructure, reshufie or reorganize the business should not be arbitrary and suficient notice should issue within a reasonable framework
p. 5Restructuring and consultation
Any lapse with regard to a legal requirement negates the entirety of the disciplinary process.
p. 6Section 41 procedural requirements
The summary dismissal of the claimant by the respondent is hereby found unfair and not justified in terms of Section 45 of the Act. Notice pay and compensation are due.
p. 7Unfair termination finding
To reshufie employees without consultations and expect the claimant to walk away happy was not a reasonable expectation. To call her for gross misconduct was too harsh, the circumstances objectively reviewed.
p. 7Fairness of dismissal
Where the respondent found the chosen representative unacceptable, recourse was to secure such right for the claimant by allowing her time to get another employee of her choice.
p. 6Employee's right to representation

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, "Keiyo v Moi Educational Centre (Cause 104 of 2019) [2023] KEELRC 2378 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2378/eng@2023-09-28

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