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ELRCPartially AllowedCause No 1417 of 2018· [2023] KEELRC 2840 (KLR)

Musavi v Vajas Manufacturing Limited (Cause 1417 of 2018) [2023] KEELRC 2840 (KLR)

Employment and Labour Relations Court of Kenya
9 November 2023
4,322 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled an employee's dismissal was fair in substance but unfair in procedure, awarding two months' salary as compensation.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 1994 as a trainee mechanist and rising to Machine Maintenance Supervisor, sued for unfair termination following his summary dismissal on 25th July, 2016 after a broken-down Doming Machine went unrepaired between 11th and 14th July, 2016. He pleaded gross pay of Kshs.157,500/- and sought a declaration of unfair termination, 12 months' compensation, pay in lieu of notice, gratuity, interest and costs, grounding the last two on a Collective Bargaining Agreement between the Respondent and the Tailors and Textiles Workers Union. The Respondent maintained the dismissal was lawful, citing insubordination and dereliction of duty, and that the CBA did not apply to the Claimant. The court framed two issues: fairness of the termination and entitlement to reliefs. On substance, it found the Claimant's four days of inaction, writing emails rather than taking initiative, amounted to dereliction of duty by a supervisor, justifying termination under Section 43 of the Employment Act. On procedure, however, it found the Section 41 threshold unmet: the charges were not explained at the commencement of the hearing, no investigation was conducted, the key witness Eric was not called, and the Claimant received less than a day's notice. The termination was declared unfair on procedural grounds alone. The CBA-based claims for notice pay and gratuity failed as the Claimant was not a union member and his position fell outside the CBA. Compensation was awarded at the equivalent of two months' gross salary under Section 49(1)(c), with costs and interest from judgment. Judgment dated 9th November 2023, delivered virtually at Nairobi by Dr. Jacob Gakeri, Judge.

Key legal issues

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01

Whether the Respondent had a valid and fair reason to summarily dismiss the Claimant

Holding

Yes - the Claimant's failure to take initiative over 4 days to remedy the Doming Machine breakdown amounted to dereliction of duty justifying termination substantively.

Reasoning

The court analysed the email exchanges of 11th to 14th July 2016 and found that the Claimant, as Maintenance Supervisor, did nothing beyond writing emails despite requests, had no worksheets or record keeping, and portrayed himself as helpless while Eric worked under him. His inaction for four days was dereliction of duty by a supervisor, satisfying the substantive justification test under Section 43 of the Employment Act.

p. 7
02

Whether the termination procedure complied with Section 41 of the Employment Act

Holding

No - the procedure was flawed: charges were not explained at the start of the hearing, no investigation was conducted, Eric was not called as a witness, and the Claimant was given less than a day's notice.

Reasoning

Although the Claimant was notified of charges, invited to a hearing and allowed a representative, the hearing lacked agenda items, there was no evidence the charges were read out in the presence of his representative, no inquiry unearthed the department's true state of affairs, and the key witness Eric was never invited. Less than a day's notice was not reasonable time, implicating the right to fair hearing under Section 41.

p. 8
03

Whether the Claimant was entitled to CBA-based reliefs (notice pay and gratuity)

Holding

No - the CBA did not apply to him as he was not a union member and his supervisory position was not covered by it.

Reasoning

The Claimant testified he was not a union member, his payslip showed no union dues, Clause 24 of the CBA benefited only unionisable employees, Part IV of the CBA did not cover the Maintenance Supervisor position, and gratuity is a contractual discretionary payment payable at the employer's discretion.

p. 8

Legal principles established

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  • Sections 41, 43, 44, 45 and 47(5) of the Employment Act prescribe the architecture of fair termination, and Section 45 requires both a valid and fair reason and fair procedure.
  • Under Section 43(2), the reason for termination is assessed on what the employer genuinely believed to exist at the time of termination.
  • Procedural fairness requires charges to be explained to the employee at the commencement of the disciplinary hearing, reasonable notice, and an opportunity for the employee's representative to hear and make representations.

Court orders

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  1. 1.A declaration that termination of the Claimant's employment by the Respondent was unfair.
  2. 2.Equivalent of 2 months gross salary compensation.
  3. 3.Costs of this suit to the Claimant.
  4. 4.Interest at court rates from the date of judgment till payment in full.

Authorities

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Legislation

  • Employment Act, 2007Section 44(4)
  • Employment Act, 2007Section 44(4)(c) and (e)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 43(2)
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 49
  • Employment Act, 2007Section 49(1)(c)
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (18)

  • Pius Machafu Isindu v Lavington Security Guards Ltd
    (2017) eKLR
  • David Gichana Omuya v Mombasa Maize Millers Ltd
    (2014) eKLR
  • Anthony Mkalla Chitavi v Malindi Water & Sewerage Co. Ltd
    (2013) eKLR
  • Bamburi Cement Ltd v William Kilonzi
    (2016) eKLR
  • Kenfreight (EA) Ltd v Benson K. Nguti
    (2016) eKLR
  • Co-operative Bank of Kenya Ltd v Banking, Insurance and Finance Union
    (2017) eKLR
  • Janet Nyandiko v Kenya Commercial Bank Ltd
    (2017) eKLR
  • National Bank of Kenya v Anthony Njue John
    (2019) eKLR
  • Judicial Service Commission v Gladys Boss Shollei & another
    (2014) eKLR
  • Stanbic Bank Ltd v Danson Mwashako Mwakuwona
    (2015) eKLR
  • Kiambaa Dairy Farmers Co-operative Society Ltd v Rhoda Njeri & 3 others
    (2018) eKLR
  • Abraham Gumba v Kenya Medical Supplies Authority
  • Shariff Salim & another v Malundu Kikava
    (1989) eKLR
  • Joseph Kiarie Njoroge v Njue Kiarie
    (2007) eKLR
  • Naima Khamis v Oxford University Press (EA) Ltd
    (2017) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2013) eKLR
  • Postal Corporation of Kenya v Adnrew K. Tanui
    (2019) eKLR
  • Munir Sheikh Ahmed v National Bank of Kenya
    (2020) eKLR
Jurisdiction invoked
First-instance claim under the Employment Act, 2007 before the Employment and Labour Relations Court

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, "Musavi v Vajas Manufacturing Limited (Cause 1417 of 2018) [2023] KEELRC 2840 (KLR)", Case Analysis (2023). Cause No 1417 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2840/eng@2023-11-09

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