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ELRCPartially AllowedCause No 882 of 2017· [2023] KEELRC 2511 (KLR)

Njenga (Suing as legal representative of the Estate of Njenga Thuku Kuibitah) v G Issaias & Company (Kenya) Limited (Cause 882 of 2017) [2023] KEELRC 2511 (KLR)

Employment and Labour Relations Court
18 October 2023
3,196 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that an employer who fires a worker without written reasons and a fair hearing must pay compensation, even after the employee's death.

What this practically means

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Executive summary

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The claimant, sued through the legal representative of his estate after his death, alleged unfair termination of employment by the respondent on 15th December 2015. His two-year written fixed-term contract had expired on 1st May 2014, but he continued working until termination. The court found it common ground that the employment continued on the terms of the expired contract, renewed or extended by conduct, rejecting the respondent's assertion that the later arrangement rested on unproved verbal terms allowing termination at will. On fairness, the termination letter gave no reasons, and the respondent's witness admitted having no record of any meeting explaining the reasons. The respondent's redundancy explanation failed, both because it was unsupported by evidence and because Section 40 procedures were not followed. Submissions by counsel could not supply the missing evidence. The termination was also procedurally unfair under Section 41. The court awarded two months' salary in lieu of notice (admitted as contractual), pay for 40 unutilized leave days, and compensation equivalent of five months' gross salary under Section 49(1)(c), considering the 3 years and 8 months of service and the deceased's non-contribution to the termination. Service pay was refused because the deceased was an NSSF member, and fee reimbursement of Kshs.3,080,250 was refused for want of documentation. Costs and interest at court rates from judgment were awarded to the claimant. Judgment entered partially in favour of the deceased on 18th October 2023, delivered virtually at Nairobi by Dr. Jacob Gakeri, Judge.

Key legal issues

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01

Terms of post-2014 employment

Holding

The employment continued on the terms of the expired written contract, renewed by conduct

Reasoning

The Respondent's claim that the post-2014 terms were purely verbal was unproved; RWI had no records and admitted the arrangement was an extension on the same terms. The Claimant worked continuously to December 2015 while being paid under the previous contract, so the parties renewed or extended the contract by conduct, as in Patrick Kalu Lewa.

p. 5
02

Validity of the reason for termination

Holding

The Respondent failed to prove a valid and fair reason

Reasoning

The termination letter gave no reasons; RWI had no record of any meeting. Redundancy was not established and, in any event, Section 40 procedures were not followed. Submissions by counsel could not substitute evidence of a reason. Section 43(1) places the burden on the employer.

p. 6
03

Procedural fairness

Holding

Termination contravened Section 41 and was procedurally unfair

Reasoning

Section 41 requires notice of grounds, explanation in a language the employee understands, a companion of choice, and consideration of representations. None of these steps was demonstrated; RWI had no evidence of any meeting where reasons were explained, so the termination was conducted in contravention of the Act.

p. 6
04

Reliefs

Holding

Notice pay, 40 leave days and 5 months' gross salary awarded; service pay and fee reimbursement refused

Reasoning

Notice pay was admitted as contractual. RWI admitted having no evidence on leave, and in the absence of controverting evidence the court credited 34 outstanding days, awarding 40. Service pay was barred by NSSF membership; fee reimbursement lacked documentation. Compensation of 5 months' gross salary reflected length of service and lack of contribution.

p. 8

Legal principles established

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  • Where an employee continues working after expiry of a fixed-term contract with the employer's consent and under the previous terms, the contract is renewed or extended by conduct
  • Termination must be both substantively justified and procedurally fair
  • The employer bears the burden of proving the reason for termination, failing which termination is unfair
  • Submissions are neither pleadings nor evidence and cannot prove a party's case

Court orders

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  1. 1.Two (2) months' salary in lieu of notice
  2. 2.Pay in lieu of 40 unutilized leave days
  3. 3.Equivalent of 5 months' gross salary as compensation for unfair termination
  4. 4.Costs of the suit to the Claimant
  5. 5.Interest at court rates from date of judgment till payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 2 and 8
  • Employment Act, 2007Section 35(5)(d)/35(6)(d)
  • Employment Act, 2007Section 40
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43(1), 43(2)
  • Employment Act, 2007Section 44, 45(2), 45
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 49(1)(c)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of Kenya, 2010Article 159(2)(d); Article 48

Cases cited (7)

  • Sandra M. Waswa v Article 19: Global Campaign for Free Expression
    [2022] eKLR
  • Denchard Dendeche v Africa Pearl Hotel Ltd
    [2018] eKLR
  • Patrick Kalu Lewa v Mackenzie Maritime E.A. Ltd
    [2020] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Daniel Toroitich Arap Moi v Mwangi Stephen Muriithi & another
    [2014] eKLR
  • Nancy Wambui Mwangi Gacheru v Peter W. Wanjere Ngugi
    HCCC No. 36 of 1993
  • Pius Machafu Isindu v Lavington Security Guards Ltd
    (2017) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 over unfair termination of employment

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, "Njenga (Suing as legal representative of the Estate of Njenga Thuku Kuibitah) v G Issaias & Company (Kenya) Limited (Cause 882 of 2017) [2023] KEELRC 2511 (KLR)", Case Analysis (2023). Cause No 882 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2511/eng@2023-10-18

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