Karambu v Chandaria Industries Ltd (Cause E094 of 2021) [2023] KEELRC 3000 (KLR)
The bottom line
#A Kenyan court confirmed an employer had reason to fire an employee but still ruled the dismissal unfair because the disciplinary process was rushed and evidence was withheld.
What this practically means
#Executive summary
#Key legal issues
#Whether the respondent had a valid and fair reason for the termination (substantive justification)
Yes - the claimant was taking alcohol during working hours and altered her itinerary without authority; the charge of authorising another person to drive was unproven.
The claimant admitted being at Jifiche Grill with beer bottles on the table and admitting her appearance in photographs; RWII's uncontroverted evidence was that alcohol was taken; the tracking report showed the vehicle near TRM for over 1½ hours; the signed minutes confirmed she took alcohol and gave an incorrect report. Section 43(2) turns on the employer's genuine belief, tested by the band of reasonableness.
Whether the termination complied with section 41 of the Employment Act (procedural fairness)
No - the process took less than 24 hours and the tracking report relied on was withheld from the claimant; the termination was procedurally unfair.
The notice to show cause was served in the afternoon of January 12 with a response due by noon and a hearing the same day, leaving no time to secure a representative. The respondent had pre-decided the termination upon receiving the photographs. Citing section 41 authority and John Rioba Maungo, the court found the process cosmetic compliance amounting to denial of a fair hearing.
What reliefs flow from a procedurally unfair termination
Notice pay, two months' salary compensation under section 49(1)(c), and a certificate of service awarded; claims settled in the April 1, 2022 partial settlement and unproven claims dismissed.
Having found procedural unfairness, section 49(1)(c) compensation was due; the court assessed two months' gross salary considering the 3 years 11 months' service, clean disciplinary record, absence of appeal or wish to return, and the claimant's substantial contribution to the termination. Notice pay was unpaid; certificate of service is due under section 51.
Legal principles established
#- For a termination to pass the fairness test, there must be both substantive justification and procedural fairness.
- Under section 43(2) of the Employment Act the reason for termination is what the employer genuinely believed to exist at the time, subject to the band of reasonableness test.
- Section 41 of the Employment Act requires a fair hearing; issuing a notice to show cause and holding a hearing within less than 24 hours, and withholding evidence relied on, breaches section 41.
Court orders
#- 1.One month's salary in lieu of notice Kshs 203,156.25
- 2.Equivalent of two (2) months salary Kshs 406,312.5 as compensation under section 49(1)(c)
- 3.Certificate of service
- 4.Costs of this suit to the claimant
- 5.Interest at court rates from date of judgment till payment in full
- Jurisdiction invoked
- Employment Act, 2007 (Employment and Labour Relations Court jurisdiction over employment claims)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Njiiri v National Bank of Kenya Limited (Cause 809 of 2020) [2024] KEELRC 808 (KLR)[2024] KEELRC 808 (KLR)17 Apr 2024
Cite this brief
#Cite this brief
Caselaw, "Karambu v Chandaria Industries Ltd (Cause E094 of 2021) [2023] KEELRC 3000 (KLR)", Case Analysis (2023). Cause No E094 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3000/eng@2023-11-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.