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ELRCPartially AllowedELRC Appeal from Mombasa CMELRC No E463 of 2022· [2023] KEELRC 3462 (KLR)

Bridge International Academies Limited v Wasgongo (Appeal E045 of 2023) [2023] KEELRC 3462 (KLR)

Employment and Labour Relations Court
19 December 2023
3,156 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Mombasa against a judgment of 18 May 2023 in CMELRC No E463 of 2022, in which an academy manager was awarded notice pay, leave pay, unpaid salary, house allowance and 9 months' compensation following a finding of unfair summary dismissal. The appellant academy argued the dismissal was for gross negligence and breach of its Child Protection Policy, after due process under Section 41 of the Employment Act. The court re-evaluated the evidence, as required on a first appeal, and framed three issues: whether the finding of unfair termination was proper, whether the reliefs awarded were justified, and costs. It held that although the respondent received a notice to show cause and responded in writing, the employer failed to demonstrate compliance with the mandatory requirement under Section 41(2) to hear and consider representations in the presence of an employee of his choice; no minutes of the disciplinary hearing were filed, and the HR officer could not name the representative. Unfair termination was therefore properly found. However, compensation had to be rationalised under Section 45(5) given the respondent's culpability, and was reduced from 9 to 3 months' gross wage (Kshs 49,185). Leave pay was recalculated to 33 days at basic pay (Kshs 18,225) applying the 18-month accumulation cap. House allowance failed because the wage was desegregated; gratuity was not contractual. The judgment was varied accordingly, with each party bearing own costs in the appeal and lower court.

Key legal issues

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01

Procedural fairness of summary dismissal under Section 41

Holding

Dismissal was unfair for want of due process: no minutes and no confirmation the respondent was accompanied by an employee of his choice at the disciplinary hearing

Reasoning

Section 41(2) requires the employer not only to issue notice with allegations and allow a written response, but also to hear and consider representations in the presence of another employee of the employee's choice. The human resource officer could not name the representative and no minutes of the disciplinary hearing were filed; as employer, the burden of work records under Section 10(6) and (7) rested on the appellant.

p. 4
02

Assessment of compensation under Section 45(5)

Holding

Compensation must factor the employee's culpability and reasons for termination; 9 months was unjustified and reduced to 3 months

Reasoning

Section 45(5) obliges the court to consider the reasons leading to termination and the employee's culpability. The respondent did not deny the matters in the notice to show cause, including suspending a pupil without escalation, though the dismissal itself failed on procedure. Want of due process alone justified only 3 months' gross wage.

p. 5
03

Leave pay

Holding

Leave may accumulate for only 18 months under Section 28(2); 33 days awarded at basic pay of Kshs 18,225

Reasoning

Section 28(2) permits accumulation of annual leave for only 18 months unless the employee applied to take leave and the employer for good cause kept him at work. On basic wage of Kshs 14,359, 33 untaken leave days were computed for the 18-month statutory cap.

p. 6
04

House allowance claim

Holding

Claim unjustified as the written contract desegregated wage into basic pay and house allowance

Reasoning

The academy manager position was not regulated under the Minimum Wage Orders and his wage exceeded the minimum general wage. Payment statements showed the gross wage desegregated into basic pay and a house allowance, removing him from the category of employees entitled to a statutory house allowance.

p. 6

Legal principles established

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  • Section 41 of the Employment Act sets out mandatory elements for a fair summary dismissal procedure, including hearing the employee in the presence of a representative of his choice
  • Internal disciplinary proceedings are contractual and decided on a balance of probability, distinct from criminal proceedings requiring proof beyond reasonable doubt
  • Costs in employment and labour disputes are discretionary and do not automatically follow the event

Court orders

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  1. 1.A declaration that employment terminated unfairly
  2. 2.Compensation awarded at 3 months' gross wage at Kshs 49,185
  3. 3.Notice pay at Kshs 16,395
  4. 4.Leave pay at Kshs 18,225
  5. 5.Each party to bear own costs in this appeal and lower court

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44(3) and (4)
  • Employment Act, 2007Section 45 and 35
  • Employment Act, 2007Section 45(5)
  • Employment Act, 2007Section 18(4)
  • Employment Act, 2007Section 28 and 28(2)
  • Employment Act, 2007Section 31
  • Employment Act, 2007Section 10(6) and (7)
  • Employment and Labour Relations Court Act, 2011Section 12(4)

Cases cited (12)

  • Pius Machafu v Lavington Security Guards Limited
    [2017] eKLR
  • Galgalo Jarso Jillo v Agricultural Finance Corporation
    [2021] eKLR
  • Felix Mutie Musango v Tin Can Manufacturers Limited
    [2020] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Ayub Imbira v Teachers Service Commission
  • Fredrick Obiero Owino v Bridge International Academies Ltd
    [2019] eKLR
  • Kenya Union of Sugar Plantation & Allied Workers v Butali Sugar Mills Limited
    [2021] eKLR
  • Kenya Union of Commercial Food and Allied Workers v Meru North Farmers Sacco Limited
    Cause No 74 of 2013
  • Oyombe v Eco Bank Limited
    (Civil Appeal 185 of 2017) [2022] KECA 540 (KLR) (13 May 2022)
  • Attorney General & another v Andrew Maina Githinji & another
    [2016] eKLR
  • Judicial Service Commission v Gladys Boss Shollei & another
    [2014] eKLR
  • Alfred Mutuku Muindi v Rift Valley Railways (Limited)
    [2015] eKLR
On appeal from
Magistrates' Court (ELRC), Mombasa
CMELRC No E463 of 2022
Jurisdiction invoked
First appeal from the lower court in employment and labour relations dispute

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, "Bridge International Academies Limited v Wasgongo (Appeal E045 of 2023) [2023] KEELRC 3462 (KLR)", Case Analysis (2023). ELRC Appeal from Mombasa CMELRC No E463 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3462/eng@2023-12-19

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