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ELRCPartially AllowedNot stated in judgment· [2023] KEELRC 3326 (KLR)

Rota v Envirofit Kenya Limited (Cause 57 of 2019) [2023] KEELRC 3326 (KLR)

Employment and Labour Relations Court
7 December 2023
1,035 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 that could not prove a valid reason and fair process for firing a worker was ordered to pay over Kshs 723,100.

What this practically means

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Executive summary

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The claimant, formerly employed by the respondent as a Regional Sales Manager at a monthly salary of Kshs 130,000 after confirmation, was summarily dismissed on 20th December 2017 for alleged negligence relating to loss of stock. He sued seeking declarations that the dismissal was unlawful and unprocedural, damages equivalent to twelve months' salary, notice pay, arrear salary, allowances, leave days, general damages, a Certificate of Service, interest and costs. The respondent filed a defence and counter-claim but its advocate ceased acting in July 2022 and it failed to attend two hearing dates; the suit proceeded exparte as undefended, with the claimant adopting his witness statement and documentary exhibits. The Court found that the respondent failed to discharge the onus under Sections 41, 43, 45 and 47 of the Employment Act of proving a valid reason and fair procedure for the summary dismissal, and that it violated Section 36 by failing to give notice. Judgment was entered for the claimant in the total sum of Kshs 723,100, comprising Kshs 260,000 compensation (two months' salary under Section 49), Kshs 260,000 arrear salary, Kshs 130,000 in lieu of notice, and Kshs 73,100 in lieu of 17 untaken leave days, with interest at court rates, costs of the suit, and an order that a Certificate of Service be issued within 30 days. The general damages and 12-month compensation heads were not granted.

Key legal issues

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01

Validity and fairness of the summary dismissal

Holding

The summary dismissal was not for a valid reason and no fair procedure was followed

Reasoning

The respondent did not attend the hearing and the suit proceeded undefended. It failed to discharge the statutory onus under Sections 41, 43, 45 and 47 of the Employment Act to prove, on a balance of probabilities, that it had a valid reason to summarily dismiss the claimant, and did not follow a fair procedure before dismissal.

p. 2
02

Notice of termination

Holding

The respondent violated Section 36 of the Employment Act by failing to give one month's notice

Reasoning

The Court found that no one month's notice of termination was issued, entitling the claimant to one month's salary in lieu of notice of Kshs 130,000.

p. 2
03

Quantum of compensation for unfair termination

Holding

Two months' salary (Kshs 260,000) awarded as compensation under Section 49(1)(c) and (4)

Reasoning

The claimant had served one year and four months, did not contribute to the dismissal, and lost terminal benefits and prospects of continued employment. Guided by the cited authorities, the Court awarded the equivalent of two months' salary in compensation.

p. 3

Legal principles established

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  • An employer bears the onus of proving a valid reason and fair procedure for summary dismissal under Sections 41, 43, 45 and 47 of the Employment Act

Court orders

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  1. 1.Kshs 260,000 in compensation for unlawful and unfair summary dismissal
  2. 2.Kshs 260,000 being arrear salary for November and December 2017
  3. 3.Kshs 130,000 in lieu of one month notice
  4. 4.Kshs 73,100 in lieu of leave days not taken (total award Kshs 723,100)
  5. 5.Interest at Court rates from date of Judgment till payment in full
  6. 6.Costs of the suit to the claimant
  7. 7.Certificate of Service to be provided to the claimant within 30 days of the judgment

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 45
  • Employment ActSection 47
  • Employment ActSection 36
  • Employment ActSection 49(1)(c) and (4)

Cases cited (2)

  • Gilbert Maurice Makori v Equity Bank Limited
    [2016] eKLR
  • Kenfreight (E.A) Limited v Benson K. Nguti
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Sections 41, 43, 45, 47, 49 and 36 of the Employment Act)

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, "Rota v Envirofit Kenya Limited (Cause 57 of 2019) [2023] KEELRC 3326 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3326/eng@2023-12-07

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