Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedAppeal No E078 of 2023· [2024] KEELRC 393 (KLR)

Radar Hardware Limited v Charles (Appeal E078 of 2023) [2024] KEELRC 393 (KLR)

Employment and Labour Relations Court
15 February 2024
3,279 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

#

What this practically means

#

Executive summary

#
The Employment and Labour Relations Court at Mombasa (M. Mbarũ, J) determined a first appeal against the judgment of 27 July 2023 in Mombasa CM ELRC No. 243 of 2020, in which a truck driver (respondent) was awarded compensation of 8 months' salary (Kshs. 280,000) for unfair termination by his employer (appellant). The appellant's case was that the respondent was found drunk driving a prime mover at Malili checkpoint on 9 January 2020, was sent on leave during investigations, and failed to attend a disciplinary hearing on 6 February 2020, leading to summary dismissal on 8 February 2020 for gross misconduct. The court on first appeal held that although the substantive conduct justified summary dismissal under Section 44(4)(b) of the Employment Act, the termination was procedurally unfair because the respondent was denied the mandatory hearing under Section 41 - there was no evidence he received the notice dated 13 January 2020, and his Certificate of Service misleadingly recorded the reason as resignation. The court further found the trial court's generalised award of 8 months' compensation failed to consider the respondent's conduct and culpability under Section 45(5) and the particularisation required by Section 118(4). The appeal partially succeeded: compensation was reduced to zero; notice pay of Kshs. 35,000 and leave pay of Kshs. 49,438 (for 2016 and 2017) were awarded; service pay was declined as the respondent was registered with NSSF; and each party was ordered to bear its own costs of both the lower court and the appeal.

Key legal issues

#
01

Fairness of the termination process

Holding

Termination was unfair because the respondent was not given notice of a disciplinary hearing as required under Section 41 of the Employment Act

Reasoning

The court found the notice dated 13 January 2020 to attend a disciplinary hearing was not received by the respondent; the approved annual leave notice was the most probable notice received. The certificate of service wrongly recorded the reason as resignation. The employer had a duty to apply its disciplinary procedures before termination, even where the alleged conduct could also be a criminal or traffic matter.

p. 5
02

Matters not pleaded - alcoholism

Holding

The trial court did not err; the intoxication was pleaded in the Response to the claim and supported by evidence

Reasoning

The appellant itself pleaded in its Response that the claimant was found drunk while operating the truck at Malili checkpoint, and its witness testified to the Alco blow test. Parties being bound by pleadings, the finding was properly grounded on the pleadings before the trial court.

p. 5
03

Assessment of compensation

Holding

The trial court's award of 8 months' compensation was set aside; compensation was reduced to zero because the respondent's intoxication at work warranted summary dismissal under Section 44(4)(b), and only notice pay was due for the procedural lapse

Reasoning

While termination was procedurally flawed, the substantive conduct (being intoxicated while driving the truck) justified summary dismissal. The trial court failed to consider the employee's conduct and culpability under Section 45(5), and its generalised award lacked analysis per Section 118(4).

p. 6
04

Leave pay for 2016 and 2017

Holding

Awarded at Kshs. 49,438 based on basic wage; the claims did not abate during continuing employment and there was no record leave was taken

Reasoning

The employer offered no record that annual leave for 2016 and 2017 was taken; continuing employment meant the claims did not abate. Payment of due leave is based on the basic wage per Section 28 of the Act, and the payment statement showed a basic wage of Kshs. 24,719.

p. 6
05

Costs of the lower court and appeal

Holding

Each party to bear own costs because the trial court gave no reasons for its costs award

Reasoning

Costs in employment claims are discretionary and reasons must be given where costs are awarded. Since the trial court outlined no reasons, each party should meet its own costs.

p. 7

Legal principles established

#
  • The employer's internal disciplinary process is distinct from criminal proceedings arising from the same facts, and the standard of proof differs
  • A Certificate of Service under Section 51 of the Employment Act is mandatory and should only note the date and termination of employment, unlike a voluntary letter of recommendation
  • An employee's disciplinary record and culpability must be considered in assessing compensation under Section 45(5) of the Employment Act
  • Section 118(4) of the Employment Act obliges the court to analyse each claim made by an employee and give reasons for the award or rejection of it

Court orders

#
  1. 1.Employment terminated without due process
  2. 2.Compensation awarded at zero (0)
  3. 3.Notice pay awarded at Kshs. 35,000
  4. 4.Leave pay awarded at Kshs. 49,438
  5. 5.Each party to bear own costs of the lower court proceedings and for this appeal

Authorities

#

Legislation

  • Employment Act, 2007Section 90
  • Employment Act, 2007Sections 41, 43, 45
  • Employment Act, 2007Section 44(4)(b)
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 51
  • Employment Act, 2007Section 118(4)
  • Employment Act, 2007Section 45(5)(b) and (e)
  • Employment Act, 2007Section 28
  • Employment Act, 2007Section 35(4), (5) and (6)
  • Employment Act, 2007Section 18(4)

Cases cited (10)

  • Mary Kitsao Ngowa & 36 others v Krystalline Limited
    [2015] eKLR
  • Mary Chemweno Kiptui v Kenya Pipeline Company Limited
    [2014] eKLR
  • Richard Nchapi Leiyagu v Independent Electoral & Boundaries Commission & 2 others
    [2014] eKLR
  • Peter Otabong Ekisa v County Government of Busia
    [2017] eKLR
  • Wambua v Newlight Schools Limited
    (Cause 475 of 2018) [2023] KEELRC 531
  • Mathew Kipchumba Koskei v Baringo Teachers Sacco
    [2013] eKLR
  • MTM v KIE Limited & another
    [2020] eKLR
  • Attorney General & another v Andrew Maina Githinji & another
    [2016] eKLR
  • Thomas Kimeli Kimaiyo v Choppies Enterprises Kenya Limited
    [2020] eKLR
  • Kenya Union of Employees of Polytechnics, Colleges and Allied Institutions (KUEPCAI) v Board of Management Limotiook Secondary School
    [2015] eKLR
On appeal from
Chief Magistrate's Court (ELRC), Mombasa
CM ELRC No. 243 of 2020
Jurisdiction invoked
First appellate jurisdiction over subordinate court employment claim (Employment Act, 2007; ELRC Act)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Radar Hardware Limited v Charles (Appeal E078 of 2023) [2024] KEELRC 393 (KLR)", Case Analysis (2024). Appeal No E078 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/393/eng@2024-02-15

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