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ELRCPartially AllowedCause No 76 of 2017· [2024] KEELRC 441 (KLR)

Yaa & another (Suing as Administrators of the Estate of the Late Fredrick Yaa Charo - Deceased) v Kilifi County Government & another (Cause 76 of 2017) [2024] KEELRC 441 (KLR)

Employment and Labour Relations Court
29 February 2024
3,126 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

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Kenya's Employment Court ruled that leaving a suspended employee hanging indefinitely amounts to unfair termination, and awarded his estate millions in unpaid wages and dues.

What this practically means

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Executive summary

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The claimants, administrators of the Estate of the late Fredrick Yaa Charo, claimed terminal and accrued employment benefits for the deceased, a storekeeper/supplies assistant employed by the defunct Municipal Council of Malindi from 1983, whose employment transitioned to the County Government of Kilifi. The deceased was issued a show-cause notice in September 2011 over LPOs worth Kshs. 4,165,000 issued to a supplier, suspended in February 2012, reinstated and deployed in December 2013, then suspended again on 30 March 2015 over an alleged loss of about Kshs. 18.9 million. No disciplinary process was ever concluded, and the deceased attained retirement age in December 2016 while on suspension without being heard or paid. He filed suit in 2017 but died before prosecution; the administrators continued the claim. The court held that while suspension to allow investigations is lawful, the employer bears a duty to conclude the suspension by reinstatement or a show-cause notice. The respondents' failure to account for any action rendered the termination unfair contrary to Sections 41 and 45 of the Employment Act, 2007, and their lapse could not defeat accrued benefits. Judgment was entered for the claimants against the respondents jointly and severally for notice pay of Kshs. 43,085, unpaid suspension wages of Kshs. 64,627.50 and unpaid wages from May 2011 to December 2016 of Kshs. 2,929,780. The respondents were ordered to facilitate access to pension and LAPROFUND dues, pay pension within 30 days, and issue a certificate of service. The 12 months' compensation and leave pay claims were not awarded as such. Each party to bear own costs.

Key legal issues

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01

Fairness of the suspension and failure to conclude the disciplinary process

Holding

The suspension of 30 March 2015 was never concluded and no account was rendered; the resulting termination of employment was unfair contrary to Sections 41 and 45 of the Employment Act

Reasoning

The court accepted that suspension to allow investigations is lawful, citing Mutwol v Moi University and Bernard Mwaura Mbuthia. However, the correlative duty of the employer is to recall the employee and either reinstate him or issue a show-cause notice. After the 2015 suspension the respondents took no action, and the deceased attained retirement age while on suspension without his case being heard or terminal dues paid, which the court held to be an unfair termination.

p. 5
02

Entitlement to unpaid wages and terminal dues despite the employer's procedural lapse

Holding

The Estate is entitled to notice pay, suspension-period wages and wages to retirement, with pension access facilitated

Reasoning

Because the respondents filed no work records showing how the deceased was treated after suspension, the court accepted the claimant's figures. Wages from May 2011 to December 2016 were awarded at Kshs. 2,929,780 for lack of contrary evidence, half salary for three months' suspension at Kshs. 64,627.50, and one month's notice pay at Kshs. 43,085 under Section 35. Pension contributions to LAPROFUND were proved by the January 2012 payslip.

p. 6
03

Time-bar defence by the 2nd respondent

Holding

The defence did not succeed; the lapse by the respondents could not defeat the Estate's accrued benefits

Reasoning

The 2nd respondent argued the claims were time barred and called no witness. The court did not uphold the defence, holding instead that the respondents' own failure to conclude the disciplinary process and pay dues could not deprive the deceased and his Estate of accrued employment benefits, invoking Section 18(5) of the Employment Act, 2007.

p. 6

Legal principles established

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  • An employer who suspends an employee has a legal duty to conclude the suspension by reinstating the employee or issuing a notice to show cause; failure to render an account renders the resulting termination unfair
  • An employer's lapse in concluding a disciplinary process should not deny the employee and his Estate accrued employment benefits

Court orders

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  1. 1.Judgment entered for the claimants against the respondents jointly and severally
  2. 2.Notice pay of Kshs. 43,085
  3. 3.Unpaid wages during suspension of Kshs. 64,627.50
  4. 4.Unpaid wages from May 2011 to December 2016 of Kshs. 2,929,780
  5. 5.Respondents to issue letters enabling access to pension and LAPROFUND dues
  6. 6.Pension dues to be processed and paid within 30 days
  7. 7.2nd respondent to issue Certificate of Service under Section 51 of the Employment Act
  8. 8.Each party to bear own costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 176
  • County Government ActSection 57
  • Employment Act, 2007Sections 18(5), 35, 41, 44, 45, 51
  • Local Government ActNot specified
  • Public Service Commission (Local Authority Officers) Regulations, 1984Not specified

Cases cited (4)

  • Mutwol v Moi University (Civil Appeal 118 of 2019) [2022] KECA 537 (KLR)
    (28 April 2022)
  • Bernard Mwaura Mbuthia v Nyahururu Water & Sanitation Company Limited, County Government of Laikipia (Interested Party) [2019] eKLR
    [2019] eKLR
  • Samson Ole Kisirkoi v Maasai Mara University & 3 others [2018] eKLR
    [2018] eKLR
  • Elizabeth Cherono Kurgat versus Kenya Literature Bureau [2014] eKLR
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under Article 162(2) of the Constitution; transition of local authority staff under Article 176 and Section 57 of the County Government 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, "Yaa & another (Suing as Administrators of the Estate of the Late Fredrick Yaa Charo - Deceased) v Kilifi County Government & another (Cause 76 of 2017) [2024] KEELRC 441 (KLR)", Case Analysis (2024). Cause No 76 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/441/eng@2024-02-29

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