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ELRCPartially AllowedCause No E802 of 2021· [2024] KEELRC 553 (KLR)

kenya Union of Domestic, Hotels, Education Institutions and Hospital Workers v Board of Management Hospital Hill High School (Cause E802 of 2021) [2024] KEELRC 553 (KLR)

Employment and Labour Relations Court
8 March 2024
5,624 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that firing an employee for a valid reason still counts as unfair if you never give them a hearing after finishing investigations.

What this practically means

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Executive summary

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The Claimant trade union sued on behalf of two grievants, Peter Mutinda (former school Bursar) and Lilian Jisii (former Cateress) of Hospital Hill School, whose employment was terminated on 31st October 2018. They claimed notice pay, service pay, compensatory damages and salary underpayment, alleging unfair and unlawful termination. The Respondent asserted the terminations were fair, that both grievants were heard, and objected that the union lacked locus standi for want of a recognition agreement. The Court first held that union standing is not pegged on a recognition agreement, which serves only collective bargaining, and that Articles 22 and 258 of the Constitution broaden locus standi, following Modern Soap Factory and Mumo Matemu. On substance, the investigative audit report established negligence by both grievants - failure by the Bursar to update books of accounts and by the Cateress to maintain stores ledgers - so valid and fair reasons existed. However, on procedure, the Court found the 11th December 2017 Board hearing inconclusive and no fresh hearing followed the February 2018 audit before termination, rendering the process procedurally unfair under Section 41 of the Employment Act. The Court awarded each grievant compensatory damages of Kshs 50,760.00 (three months' gross salary) with interest. Claims for notice pay, service pay (barred by NSSF membership under Section 35(6)) and underpayment (unproven) were declined. Each party was to bear its own costs owing to delay in filing submissions.

Key legal issues

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01

Locus standi of a trade union without a recognition agreement

Holding

The Claimant Union has locus standi despite the absence of a recognition agreement and unproven membership claims

Reasoning

Section 54 of the Labour Relations Act provides that recognition is only for purposes of collective bargaining. Union membership is not pegged on a recognition agreement, and pegging it so would curtail the Article 41(2)(c) constitutional right to join a trade union. Further, Articles 22(2) and 258(2)(d) broadened locus standi, fortified by Modern Soap Factory and Mumo Matemu.

p. 7
02

Substantive fairness of termination

Holding

The Respondent proved valid and fair reasons for terminating both grievants on grounds of negligence

Reasoning

The investigative audit report indicted the 1st grievant (bursar) for failure to update books of accounts and trial balances, and the 2nd grievant for failure to maintain stores ledgers. Letters from RW1 showed repeated reminders to the 1st grievant, who offered no proof of response. The lapses fell squarely within their duties, establishing valid and fair reasons under Section 45(2).

p. 9
03

Procedural fairness of termination

Holding

Termination was procedurally unfair because the grievants were never heard after the investigative audit on which the termination was based

Reasoning

The 11th December 2017 Board hearing was inconclusive as the Board resolved to await an audit report. No further disciplinary hearing was convened after the February 2018 audit; the decision to terminate was made at the 18th October 2018 Board meeting without inviting the grievants. Conducting a hearing before investigations would be putting the cart before the horse; a fresh hearing was required under Section 41.

p. 11

Legal principles established

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  • A trade union's standing to represent its members in court does not depend on a recognition agreement, which is only for collective bargaining
  • An employer must accord an employee a fresh hearing after investigations conclude where the initial disciplinary hearing was inconclusive

Court orders

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  1. 1.Judgment entered against the Respondent
  2. 2.1st grievant awarded compensatory damages of Kshs 50,760.00 equivalent to three months' gross salary with interest at court rates from date of judgment until payment in full
  3. 3.2nd grievant awarded compensatory damages of Kshs 50,760.00 equivalent to three months' gross salary with interest at court rates from date of judgment until payment in full
  4. 4.No orders as to costs
  5. 5.Grievants at liberty to collect their final dues

Authorities

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Legislation

  • Employment ActSections 35(6), 41, 42(1), 43, 44(3) & (4), 45(2)
  • Labour Relations ActSections 2, 54
  • Constitution of Kenya, 2010Articles 22, 22(2), 258(2)(d), 41(2)(c)
  • Education ActSection 23(2)(a & b) (referenced within the audit report)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (5)

  • Communication Workers Union v Safaricom Limited [2014] eKLR
    [2014] eKLR
  • Galgalo Jarso Jillo v Agricultural Finance Corporation [2021] eKLR
    [2021] eKLR
  • Modern Soap Factory v Kenya Shoe and Leather Workers Union [2020] eKLR
    [2020] eKLR
  • Mumo Matemu v Trusted Society of Human Rights Alliance & 5 others [2014] eKLR
    [2014] eKLR
  • John Wekesa Khaoya v Attorney General, Petition No. 60 of 2012; [2013] eKLR
    Petition No. 60 of 2012; [2013] eKLR
Jurisdiction invoked
First-instance jurisdiction under the Employment and Labour Relations Court's statutory mandate (Employment Act and Labour Relations Act invoked); no specific constitutional article invoked as basis of jurisdiction

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, "kenya Union of Domestic, Hotels, Education Institutions and Hospital Workers v Board of Management Hospital Hill High School (Cause E802 of 2021) [2024] KEELRC 553 (KLR)", Case Analysis (2024). Cause No E802 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/553/eng@2024-03-08

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