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ELRCPartially AllowedCause No E398 of 2022· [2024] KEELRC 417 (KLR)

Wanjohi v Kenya Railways Corporation (Cause E398 of 2022) [2024] KEELRC 417 (KLR)

Employment and Labour Relations Court
29 February 2024
3,828 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employee whose probation ends without employer confirmation is automatically confirmed, and firing him without a hearing is unfair.

What this practically means

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Executive summary

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The Claimant, employed on a five-year fixed-term contract effective 29th November 2019 as Real Estate Valuation & Agency Manager, with six months' probation commencing 2nd January 2020, sued for unfair and unlawful termination following a termination letter dated 12th August 2020. The Respondent maintained the termination was based on unsatisfactory probationary performance and was fair. The court framed three issues: the Claimant's status at termination, the fairness of the termination, and entitlement to reliefs. It held that since probation lapsed on 2nd July 2020 without extension by consent or any communication from the employer, the Claimant was deemed confirmed by operation of law and had transitioned to permanent employment. Consequently, Sections 41 and 45 of the Employment Act applied. The Respondent adduced no evidence of agreed targets, a performance management system, a Performance Improvement Plan, or support, and afforded no hearing, with the supervisor being the accuser. The termination was found substantively unjustified and procedurally unfair. The court issued a declaration that the termination was unfair, awarded one month's salary in lieu of notice if unpaid, and compensation equivalent to two months' salary under Section 49(1)(c), having regard to the short employment, the Claimant's failure to appeal, and his contribution to the termination. The accrued leave claim was declined for want of particulars, and aggravated damages were dismissed for lack of evidence. Costs were awarded to the Claimant. Judgment dated 29th February 2024, delivered virtually at Nairobi by Dr. Jacob Gakeri, Judge.

Key legal issues

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01

Status of employment after lapse of probationary period

Holding

The Claimant was confirmed by operation of law upon expiry of the 6-month probation, as the Respondent neither extended probation by agreement nor communicated with him

Reasoning

Probation began on 2nd January 2020 and was to end on 2nd July 2020. Clause 5 of the contract made no provision for extension. The Respondent's last communication was the letter of 24th June 2020, and termination came about one month and 12 days after probation lapsed. Following David Nyamu Kariuki and Peris Nyambura, the court held the employee was deemed confirmed by effluxion of time and had transitioned from probation to permanent employment.

p. 6
02

Procedural and substantive fairness of termination

Holding

Termination of a confirmed employee without notice to show cause, hearing, or proof of poor performance was unfair and unlawful

Reasoning

Having been confirmed by operation of law, the Claimant was entitled to protection of Sections 41 and 45 of the Employment Act. The Respondent adduced no evidence of agreed targets, a performance management system, a Performance Improvement Plan, or support extended, and no hearing was afforded. The supervisor was the accuser, yet no opportunity was given to respond or cross-examine. The termination was therefore both substantively unjustified and procedurally unfair.

p. 8
03

Reliefs

Holding

Declaration granted, one month's notice pay (if unpaid) and equivalent of 2 months' salary as compensation; accrued leave and aggravated damages claims declined

Reasoning

Compensation under Section 49(1)(c) was reduced to 2 months' salary considering the short employment of about 7 months, the Claimant's failure to appeal or express a wish to remain, and his contribution to the termination. The leave claim lacked particulars and aggravated damages lacked evidential support.

p. 8

Legal principles established

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  • Where a probationary period lapses without extension by consent and without communication from the employer, the employee is deemed confirmed by operation of law
  • An employer alleging poor performance bears the burden of proving it, including demonstration of performance standards, support and reviews

Court orders

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  1. 1.Declaration that termination of the Claimant's employment was unfair
  2. 2.One month's salary in lieu of notice, if unpaid
  3. 3.Equivalent of 2 months' salary as compensation
  4. 4.Costs of the suit

Authorities

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Legislation

  • Employment ActSection 2 (definition of probationary contract)
  • Employment ActSection 42(2)
  • Employment ActSections 41 and 45
  • Employment ActSection 49(1)(c)
  • Employment ActSections 35 and 36 (cited by Claimant's counsel)
  • Employment ActSection 45(3) (cited by Claimant's counsel; declared unconstitutional in the Momanyi Case)
  • Employment ActSections 8 and 5(8)(c) (as referenced in Jane Samba Mukala)
  • Constitution of KenyaArticles 159(2)(d) and 48 (in the COVID-19 delivery order)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Respondent's Human Resource Manual, August 2017Clauses 2.25.3 and 2.25.5

Cases cited (14)

  • David Namu Kariuki V Commission for the Implementation of the Constitution
    (2015) eKLR
  • Patrick Korir Rotich V Unilever Tea Kenya Ltd
    (2016) eKLR
  • Jane Samba Mukala V Ol Tukai Lodge Ltd
    (2013) eKLR
  • Monica Munira Kibuchi & others V Mount Kenya University
    (2021) eKLR
  • Kenya Union of Commercial Food and Allied Workers V Kisii Bottlers Ltd
    (2020) eKLR
  • Meru Multi-Purpose Co-operative Society Ltd V Jeremy Kirimi
    (2022) eKLR
  • John Muthomi Mathiu V Mastermind Tobacco (K) Ltd
    (2018) eKLR
  • Walter Ogal Anuro V Teachers Service Commission
    (2013) eKLR
  • Peris Nyambura V Dalbit Group Ltd
    (2015) eKLR
  • Ascrat Gilamichael Woldegabriel V Five Forty Aviation Ltd
    (2015) eKLR
  • Pooroosotum Bheekhoo V Linksoft Group
    (2015) eKLR
  • Fredrick Odongo Owegi V CFC Life Assurance Ltd
    (2014) eKLR
  • Jane Wairimu Machira V Mugo Waweru & Associates
    Cause No. 621 of 2012
  • The Momanyi Case (Lenaola J., as he then was)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 over unfair termination 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, "Wanjohi v Kenya Railways Corporation (Cause E398 of 2022) [2024] KEELRC 417 (KLR)", Case Analysis (2024). Cause No E398 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/417/eng@2024-02-29

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