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ELRCPartially AllowedMemorandum of Claim dated 5th August 2019 (ELRC)· [2023] KEELRC 3130 (KLR)

Wambui v Borderless Tracking Limited (Cause 539 of 2019) [2023] KEELRC 3130 (KLR)

Employment and Labour Relations Court
22 November 2023
2,339 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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Kenyan employers must follow fair procedures—even during probation—after the ELRC awarded a dismissed probationer three months' salary plus costs.

What this practically means

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Executive summary

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The Claimant was employed by the Respondent on 6th May 2019 as a Sales and Client Service Manager at a net monthly salary of Kshs.90,000 and was dismissed while on probation, allegedly on grounds of downsizing or non-performance. She sued for declarations of unfair and unlawful dismissal and withholding of terminal dues, twelve months' salary as damages, notice pay, accrued leave, off days, pending salary for 21 days, a certificate of service and costs. The Respondent defended the dismissal as lawful termination of a probationary contract for non-performance under section 42 of the Employment Act, 2007, contending that section 42 ousts section 41 for probationary employees. The court framed three issues: whether the termination was wrongful, unfair and unlawful; entitlement to relief; and costs. It held that the exemption of probationary contracts in section 42(1) is now bad law and that section 41 procedural protections apply at all stages of employment, including probation. The Claimant was given no notice to show cause, no disciplinary hearing and no opportunity to be heard, and the Respondent tendered no evidence of any performance evaluation. The termination was therefore unfair and unlawful. The court issued a declaration to that effect and awarded one month's salary in lieu of notice (Kshs.90,000) and two months' salary (Kshs.180,000) for the unlawful termination, totalling Kshs.270,000, with costs to the Respondent.

Key legal issues

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01

Whether termination of a probationary employee for non-performance without due process was unfair and unlawful

Holding

Yes. The probationary status did not exempt the employer from the procedural fairness requirements; termination without notice to show cause, hearing or opportunity to be accompanied was unfair and unlawful.

Reasoning

The court reasoned that the exemption in section 42(1) of the Employment Act has been overtaken by events and is bad law. Section 41 protections now apply at all stages of employment including probation. The Claimant was never accorded due process: no notice to show cause, no disciplinary hearing, no opportunity to be heard with an employee of her choice or union official. The Respondent also produced no evidence of any performance evaluation establishing substandard performance. The Claimant's case therefore overwhelmed that of the Respondent.

p. 5
02

What relief follows from a finding of unlawful termination during probation

Holding

The Claimant was entitled to one month's salary in lieu of notice and two months' salary as compensation for the unlawful termination.

Reasoning

Having succeeded on the claim of unlawful termination, the court found the Claimant entitled to relief. It granted a declaration of unfair and unlawful termination, one month's notice pay of Kshs.90,000 and the equivalent of two months' gross salary, Kshs.180,000, as compensation, totalling Kshs.270,000, together with costs against the Respondent.

p. 5

Legal principles established

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  • Termination during probation must still meet the legal threshold for lawful termination; section 42(1) exemption from section 41 procedures is no longer good law.
  • Termination without notice to show cause, disciplinary hearing or opportunity to be heard is unfair and unlawful.

Court orders

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  1. 1.A declaration that the termination of the employment of the Claimant by the Respondent during probation amounted to unfair and unlawful termination of employment.
  2. 2.One (1) month salary in lieu of notice of Kshs.90,000.00.
  3. 3.Two (2) months salary for unlawful termination of employment of Kshs.180,000.00, total award Kshs.270,000.00.
  4. 4.The costs of this cause to be borne by the Respondent.

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 42
  • Employment Act, 2007section 51
  • Employment Act, 2007section 8

Cases cited (8)

  • Maina Mwangi vs. Thika Coffee Mills Ltd
    ELRC No. 2177/2012
  • Jane Samba Mulala v Ol Tukai Lodge Limited
    Industrial Cause Number 823 of 2010; [2010] LLR 255 (ICK)
  • Joseph Wachira Kimani v Dataguard Distributors Limited
    [2017] eKLR
  • Danish Jalang’o and Another v Amicabre Travel Services Limited
    [2014] eKLR
  • Janet Nyandiko versus Kenya Commercial Bank Limited
    [2017] eKLR
  • National Bank of Kenya v Anthony Njue John
    [2019] eKLR
  • Kelvin Gitonga Kinyua v Kenya Methodist University
    [2021] eKLR
  • Joan Muthoni Mathiu versus Mastermind Tobacco (K) Ltd.
    [2018] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance Memorandum of Claim)

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, "Wambui v Borderless Tracking Limited (Cause 539 of 2019) [2023] KEELRC 3130 (KLR)", Case Analysis (2023). Memorandum of Claim dated 5th August 2019 (ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3130/eng@2023-11-22

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