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ELRCPartially AllowedCause No 16 of 2016· [2023] KEELRC 2820 (KLR)

Andeyi v Street Children’s Assistance Network of Nakuru (Cause 16 of 2016) [2023] KEELRC 2820 (KLR)

Employment and Labour Relations Court
9 November 2023
4,242 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 firing an employee based only on suspicion, without a proper disciplinary hearing, was unfair and awarded him over Kshs.467,000.

What this practically means

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Executive summary

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The claimant, employed by the respondent as a housekeeper/dorm-master from 1st January 2000 at a starting salary of Kshs.3,000 (rising to Kshs.15,000), was terminated by letter dated 11th July 2013 following allegations that he failed to spend nights in the boys' dormitories, allegedly leading to sexual abuse of younger boys by older ones. He sued for underpayment, notice pay, annual leave, overtime, public holidays, gratuity and compensation totaling Kshs.2,540,341.63. The respondent maintained the termination was for gross misconduct but conceded no payments other than Kshs.17,185 were made. The court framed three issues: fairness of the termination, entitlement to reliefs, and costs. It found the termination unfair both substantively and procedurally: the show-cause letter alleged neglect of duty while the termination letter cited insubordination; no disciplinary hearing was held after the show-cause letter; and suspicion alone cannot ground a fair termination. The court applied the three-year limitation under Section 90 of the Employment Act, excluding pre-July 2010 claims. It awarded notice pay (Kshs.15,000), partial overtime (Kshs.293,751.38), partial public holiday pay (Kshs.69,230.80) and six months' compensation (Kshs.90,000), a total of Kshs.467,982.18. Underpayment, annual leave and gratuity claims were denied. A declaration of unfair and unlawful termination was issued, with costs to the claimant. Judgment delivered virtually at Nakuru on 9th November 2023 by David Nderitu, Judge.

Key legal issues

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01

Whether the termination was substantively fair

Holding

It was not; the respondent failed to establish genuine and reasonable grounds for termination.

Reasoning

The show-cause letter and minutes of 1st July 2013 alleged neglect of duty leading to sexual abuse of younger boys, but the termination letter cited insubordination. The contradiction left the reason for termination uncertain. No disciplinary hearing was held after the show-cause letter at which specific charges, evidence and a defence opportunity could have confirmed the suspicion. Suspicion alone, however strong, is not a fair ground for termination under Sections 43, 44 and 45 of the Employment Act.

02

Whether the termination was procedurally fair

Holding

It was not; the claimant was denied a hearing and his rights were not explained to him.

Reasoning

After the show-cause letter no disciplinary meeting was convened. The claimant was not informed of the date and venue of a hearing, the specific charges and evidence against him, his right to call witnesses or be accompanied, or his right of appeal. The meeting of 1st July 2013 predated the show-cause letter and could not count as a hearing. The lapses offended natural justice, Article 47 of the Constitution and the Fair Administrative Action Act.

p. 5
03

Entitlement to the reliefs claimed

Holding

Partially allowed: notice pay, partial overtime, partial public holidays and six months' compensation awarded; underpayment, leave and gratuity denied.

Reasoning

Section 90 of the Employment Act confines awards to the three years preceding the cause of action, excluding claims from 1991. Notice pay was due as the respondent did not prove notice was served or paid for. Overtime and public holiday claims were partially proved, the employer having failed to produce employment records under Sections 10 and 74. Leave was settled by payment of Kshs.17,185. Gratuity was not contractual.

p. 6
04

Appropriate compensation for unfair termination

Holding

Six months' gross pay (Kshs.90,000) as fair and reasonable compensation under Section 49.

Reasoning

The court balanced the factors in Section 49(4): although the hearing was unfair, the employment relationship had irretrievably broken down on the employer's suspicion; the claimant had received Kshs.17,185 in dues; and his work was not specialized. Compensation should neither reward an employer for unlawful termination nor be unreasonably punitive to the employer.

p. 7

Legal principles established

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  • An employer must have a lawful and genuinely established reason for termination and must follow a fair procedure, including a disciplinary hearing.
  • Suspicion alone, however strong, cannot found a fair termination; the employer must raise it to genuine and reasonable levels, ordinarily through a disciplinary hearing.
  • Employment claims are subject to a three-year limitation period under Section 90 of the Employment Act.
  • Gratuity is not an employee's right but a discretionary payment unless the contract provides for it.
  • Where the employer is statutorily obligated to keep employment records and fails to produce them, it cannot dislodge an employee's claim (e.g. overtime).

Court orders

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  1. 1.A declaration be and is hereby issued that the termination of the claimant was unfair and unlawful.
  2. 2.The claimant is awarded a sum of Kshs.467,982.18 made up of notice pay Kshs.15,000.00, overtime pay Kshs.293,751.38, public holidays Kshs.69,230.80 and compensation Kshs.90,000.00.
  3. 3.Costs of the cause to the claimant.

Authorities

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Legislation

  • Employment ActSections 10, 35, 36, 41, 43, 44, 45, 46, 47, 48, 49(1)(c), 49(4), 74, 90
  • Constitution of KenyaArticle 47
  • Fair Administrative Action ActRelevant provisions (not specified)

Cases cited (5)

  • Mary Chemweno V Kenya Pipeline Company Limited
    (2017) eKLR
  • Loice Otieno V Kenya Commercial Bank Limited
    (2013) eKLR
  • Walter Ogal Anuro V Teachers Service Commission
    (2012) eKLR
  • Gilbert Mariera Makori V Equity Bank Limited
    (2016) eKLR
  • Bamburi Cement Ltd V William Kilonzi
    (2016) eKLR
Jurisdiction invoked
Original jurisdiction under the Employment and Labour Relations Court Act over employment and labour relations claims

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, "Andeyi v Street Children’s Assistance Network of Nakuru (Cause 16 of 2016) [2023] KEELRC 2820 (KLR)", Case Analysis (2023). Cause No 16 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2820/eng@2023-11-09

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