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ELRCPartially AllowedCause No 281 of 2020· [2023] KEELRC 2729 (KLR)

Murimi v Institute of Human Resource Management (IHRM) (Cause 281 of 2020) [2023] KEELRC 2729 (KLR)

Employment and Labour Relations Court
31 October 2023
4,626 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded an employee over Kshs.5.6 million because her employer fired her twice for the same offence without a fresh hearing.

What this practically means

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Executive summary

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The claimant, Head of Secretariat and second-most-senior employee of the Institute of Human Resource Management (IHRM), was summarily dismissed on 31/1/2020 for allegedly signing a sale agreement for the institute's vehicle KCD 556J without authority. She appealed, and the Council revoked the dismissal as null and void. Instead of reinstating her, IHRM kept her on suspension, issued no fresh Notice to Show Cause, and on 15/4/2020 an Ad hoc Disciplinary Committee merely conveyed to her a decision to terminate her employment, confirmed by a letter dated 30/4/2020 citing disposal of the vehicle contrary to the Public Procurement and Disposal of Assets procedure. The court found the undisputed chronology showed the Executive Director had authorized the sale with the notation 'proceed and close, approved', that the procurement ground was a new accusation never raised in any NTSC, and that the second termination was effected without any hearing. This violated Section 41 of the Employment Act, the rules of natural justice, and Article 41 of the Constitution, and subjected the claimant to double jeopardy. The termination was held wrongful, unlawful and unfair under Sections 45 and 47(5). The court awarded 12 months' gross salary (Kshs.4,614,216) under Section 49, one month's notice pay (Kshs.384,518) and 59 leave days (Kshs.697,280), with interest and costs. Three months' notice pay, loss of prospective earnings, aggravated and punitive damages were refused, the maximum statutory compensation being held adequate.

Key legal issues

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01

Whether the second termination was for a valid reason following a fair procedure

Holding

The second termination was unlawful and unfair: no new Notice to Show Cause was issued after the Council revoked the first termination, and the claimant was given no hearing before the Ad hoc Committee conveyed its decision.

Reasoning

The Council, the respondent's supreme body, had revoked the first termination as null and void. The Ad hoc Committee then proceeded without issuing a new NTSC and without holding any hearing; the claimant was merely invited to a meeting where the decision to terminate was communicated to her. This violated Section 41 of the Employment Act, the rules of natural justice, and subjected her to double jeopardy. No valid reason for the second termination was demonstrated.

p. 8
02

Whether the charge of unauthorized sale of the vehicle was valid

Holding

The sale was authorized by the Executive Director's memo notation 'proceed and close, approved', and the alleged failure to follow the Public Procurement and Disposal of Assets procedure was a new accusation never raised in any Notice to Show Cause.

Reasoning

The memo of 5/11/2019 showed the Executive Director approved the sale at Kshs.400,000. The Procurement Act ground was introduced for the first time in the termination letter; R.W.1 admitted there was no reference to the Procurement Act in the NTSC and the respondent was not aware it followed the Act. The claimant, second-in-command, acted on delegated authority.

p. 3
03

Entitlement to reliefs

Holding

The claimant was awarded 12 months' gross salary as compensation under Section 49, one month's notice pay, unpaid salary arrears and 59 leave days; aggravated and punitive damages and three months' notice pay were refused.

Reasoning

The Court took into account the claimant's 20 years of faithful service, her seniority, her advanced age and loss of 10 prospective years to retirement, and the aggravating double jeopardy. Notice pay was limited to one month for want of proof of a three-month contractual notice, and salary arrears and untaken leave were proved. The maximum statutory compensation was held adequate, so further damages were dismissed.

p. 8

Legal principles established

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  • Once the supreme organ of an employer (the Council) has reviewed and revoked a termination as null and void, the employee cannot be subjected to a further disciplinary process on the same facts without a new Notice to Show Cause and a fresh hearing.
  • Termination without any hearing violates Section 41 of the Employment Act and the rules of natural justice, and subjecting an employee to a second disciplinary process on the same facts amounts to double jeopardy.
  • Under Section 47(5) of the Employment Act, 2007, an employee who demonstrates that a termination was wrongful is entitled to compensation under Section 49(1)(c) and (4).

Court orders

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  1. 1.Kshs.4,614,216 in compensation (12 months' salary)
  2. 2.Kshs.384,518 in lieu of one month notice
  3. 3.Kshs.697,280 in lieu of 59 leave days
  4. 4.Interest at Court rates from the date of judgment till payment in full
  5. 5.Costs of the suit

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 47(5)
  • Employment ActSections 36, 43 and 45
  • Employment Act, 2007Section 49(1)(c) and (4)
  • Public Procurement and Disposal of Assets Act (Public Procurement Act)Thresholds and disposal committees
  • Constitution of Kenya, 2010Article 41 (fair labour practices)

Cases cited (4)

  • Bernard Dodo Mbaia -vs- Air Trafic Limited
    [2014] eKLR
  • Bomas of Kenya –vs- Thiriku
    (Civil Appeal 379 of 2019) [2022] KECA 795 [eKLR]
  • CMC Aviation Limited –vs- Mohammed Noor
    [2015] eKLR
  • Martin Ireri Ndwiga -vs- Olerai Management Company
    [2017] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment dispute (Employment Act, 2007; Article 41 of the Constitution, 2010 invoked)

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, "Murimi v Institute of Human Resource Management (IHRM) (Cause 281 of 2020) [2023] KEELRC 2729 (KLR)", Case Analysis (2023). Cause No 281 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2729/eng@2023-10-31

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