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ELRCPartially AllowedCause No 611 of 2018· [2023] KEELRC 3110 (KLR)

Atula v Techpack Industries Limited (Cause 611 of 2018) [2023] KEELRC 3110 (KLR)

Employment and Labour Relations Court
24 November 2023
2,620 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer fired a sick worker and won on the reason but lost on the process, paying damages for skipping a fair hearing.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 2008 as a machine operator on renewable yearly contracts, sued for Kshs 359,550.00 for leave days, notice pay and compensation for alleged oral termination by the Respondent's Human Resource Manager in June 2017 after he fell ill. The Respondent denied unlawful dismissal, asserting the Claimant absconded duty, accumulated seven warning letters for absenteeism, failed to produce medical documents when traced, and never responded to a disciplinary letter dated 20th July 2017; it further contended his one-year contract simply lapsed on 30th September 2017. The court framed three issues: substantive justification, procedural fairness, and reliefs. On substance, applying Sections 43(1) and 45(2) of the Employment Act, the court held the Claimant failed to prove he notified the Respondent of his illness or produced a medical certificate as Section 30 requires, so his absence was unexplained and constituted desertion justifying termination. On procedure, however, the disciplinary letter was posted to 'P.O Box 34, Ndigwa' while the Claimant's contracts disclose 'P.O Box 34, Uyoma', making receipt doubtful; no minutes of any disciplinary meeting were produced and attendance was not suggested. The termination was therefore procedurally unfair under Section 41. Judgment was entered for the Claimant: Kshs 16,516.00 notice pay, Kshs 33,032.00 compensatory damages (two months' gross salary, discounted for his contribution), and Kshs 6,744.00 unpaid leave (prorated, the Respondent having no leave records under Section 74(1)(f)), totalling Kshs 56,292.00 with interest, plus costs and a certificate of service within 30 days. The Respondent did not appear at the hearing.

Key legal issues

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01

Whether the Claimant's absence from work was justified on account of illness

Holding

The Claimant failed to prove he notified the Respondent of his illness or produced medical documentation, so his absence was unexplained and the termination was substantively justified.

Reasoning

Section 30(1) and (2) of the Employment Act entitle an employee to sick leave only upon notifying the employer and producing a certificate signed by a qualified medical practitioner. Although the Claimant testified he forwarded medical reports, he did not exhibit them. The court held the absence was unexplained, amounting to desertion of duty, a ground for dismissal under Section 44(4)(a).

p. 4
02

Whether the termination procedure was fair under Section 41

Holding

The termination was procedurally unfair because the disciplinary letter was posted to the wrong postal address, no proof of receipt existed, and no minutes of any disciplinary meeting were produced.

Reasoning

The letter dated 20th July 2017 was sent to 'P.O Box 34, Ndigwa' whereas the Claimant's contracts disclose 'P.O Box 34, Uyoma'. Receipt of the notice was therefore doubtful. RW1 referenced a meeting but produced no minutes and did not suggest the Claimant attended. The Respondent thus failed its evidential burden under Section 45(2)(c).

p. 5
03

What reliefs flow from a substantively justified but procedurally unfair termination

Holding

The Claimant was awarded notice pay, two months' compensatory damages (reduced for his own contribution) and prorated unpaid leave.

Reasoning

Because the process failed under Section 41, compensation followed, moderated by the Claimant's contributory conduct. The unpaid leave claim succeeded because the Respondent did not produce leave records as required by Section 74(1)(f), though the leave was prorated per the contract then in force.

p. 5

Legal principles established

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  • An employer must prove valid and fair reasons for termination under Sections 43(1) and 45(2) of the Employment Act, failing which the termination is unfair.
  • An employee claiming sick leave must notify the employer and produce a medical certificate of incapacity to work.
  • An employer must comply with the fair procedure requirements of Section 41, including proper notification of the employee before termination.
  • The employer bears the statutory obligation under Section 74(1)(f) to keep and produce leave records; failure shifts the claim for unpaid leave in the employee's favour.

Court orders

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  1. 1.One month's salary in lieu of notice of Kshs 16,516.00
  2. 2.Compensatory damages of Kshs 33,032.00 being equivalent to two months' gross salary
  3. 3.Unpaid leave days of Kshs 6,744.00
  4. 4.Total award of Kshs 56,292.00 with interest at court rates from the date of Judgment until payment in full
  5. 5.Claimant awarded costs of the suit
  6. 6.Respondent to issue a certificate of service under Section 51(1) of the Employment Act within 30 days

Authorities

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Legislation

  • Employment ActSection 43(1)
  • Employment ActSection 45(2)(a) and (b)
  • Employment ActSection 30(1) and (2)
  • Employment ActSection 44(4)(a)
  • Employment ActSection 41
  • Employment ActSection 42(1)
  • Employment ActSection 74(1)(f)
  • Employment ActSection 51(1)
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B

Cases cited (3)

  • Kenya Union of Commercial Food and Allied Workers vs Meru North Farmers Sacco Limited
    (2013) eKLR
  • George Onyango vs The Board of Directors Numerical Machining Complex Limited
    (2014) eKLR
  • Rajib Barasa & 4 Others vs Kenya Meat Commission
    (2016) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act; Civil Procedure Act invoked for electronic delivery of judgment)

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, "Atula v Techpack Industries Limited (Cause 611 of 2018) [2023] KEELRC 3110 (KLR)", Case Analysis (2023). Cause No 611 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3110/eng@2023-11-24

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