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ELRCPartially AllowedCause No E899 of 2021· [2024] KEELRC 678 (KLR)

Imbali v Kenya Hospital Association t/a the Nairobi Hospital (Cause E899 of 2021) [2024] KEELRC 678 (KLR)

Employment and Labour Relations Court
20 March 2024
4,171 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Claimant, employed as a Plant Supervisor from January 2018, challenged the termination of his employment following an incident on 30th June 2021 in which over 50 gas cylinders delivered by BOC were left outside the storage cage and keys were not returned to their designated place, coinciding with an oxygen supply disruption to the hospital. He was issued a notice to show cause, attended two disciplinary hearings, and was terminated on 1st October 2021 on grounds of negligence. His appeal against the termination was declined. The Respondent filed a Response but elected not to call oral evidence. The Court framed two issues: whether the termination was unfair and unlawful, and whether the Claimant was entitled to the reliefs sought. Applying Sections 43 and 45(2) of the Employment Act, the Court found receiving and securing gas cylinders was not in the Claimant's job description nor formally assigned to him, and that the Respondent's assertions of adequate manpower and sole key custody were unsupported by evidence. Internal emails corroborated a manpower shortage and confirmed medical gases were a biomedical function. Substantive justification therefore failed, though the procedure under Section 41 was compliant. The termination was declared unfair and the Claimant awarded compensatory damages of Kshs 570,006.00, equivalent to six months' gross salary, with interest and costs. The claim for unpaid house allowance of Kshs 655,506.90 was declined because his salary was consolidated under Section 31(2) of the Act.

Key legal issues

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01

Substantive justification for termination

Holding

The Respondent failed to prove a valid and fair reason; receiving and securing gas cylinders was not in the Claimant's job description and the Respondent led no evidence of adequate manpower or sole key custody

Reasoning

Section 43(1) and Section 45(2)(a) and (b) of the Employment Act require the employer to prove valid and fair reasons for termination. The termination letter cited negligence, but the duty of securing gas cylinders was absent from the Claimant's job description and never formally assigned to him. The Respondent elected not to call oral evidence, leaving its assertions about manpower and key custody unsupported. Internal emails confirmed medical gases were a biomedical function and that there was a manpower shortage.

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02

Procedural fairness of termination

Holding

The procedure complied with Section 41 of the Employment Act - the Claimant was given a show-cause notice, responded, and was heard at two disciplinary hearings

Reasoning

Section 45(2)(c) read with Section 41 requires notice of allegations and an opportunity to be heard. The Claimant admitted receiving the notice to show cause, replied to it, and attended disciplinary hearings on 13th August 2021 and 7th September 2021 where he was given an opportunity to defend himself, which he confirmed in cross-examination. Procedural fairness was therefore met, but the termination was ultimately unfair for want of substantive justification.

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03

Claim for unpaid house allowance

Holding

Declined because the salary was consolidated

Reasoning

The Claimant sought Kshs 655,506.90 as unpaid house allowance. However, his contract of employment provided a consolidated salary. Section 31(2) of the Employment Act contemplates consolidation of house allowance in the salary, in which case the employer owes no separate house allowance payment. The claim therefore failed.

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Legal principles established

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  • An employer must prove both substantive justification and fair procedure for a termination to be upheld
  • An employee cannot be found negligent in respect of a duty that did not form part of his job description and was not assigned to him
  • Allegations by an employer that are unsupported by evidence do not amount to a valid and fair reason for termination

Court orders

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  1. 1.A declaration that the termination of the Claimant's employment was unfair
  2. 2.The Claimant is awarded compensatory damages in the sum of Kshs 570,006.00 being equivalent to six (6) months of his gross salary
  3. 3.Interest on the amount in (b) at court rates from the date of Judgment until payment in full
  4. 4.The Claimant shall also have the costs of the suit

Authorities

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Legislation

  • Employment ActSection 43(1)
  • Employment ActSection 45(2)(a) and (b)
  • Employment ActSection 45(2)(c)
  • Employment ActSection 41
  • Employment ActSection 44(4)(c)
  • Employment ActSection 49(1)
  • Employment ActSection 31(2)
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (4)

  • Netah Njoki Kamau & another v Eliud Mburu Mwaniki
    (2021) eKLR
  • Charles Ooko Maganda v South Nyanza Sugar Co. Ltd
    (2018) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Chairman Board of Directors (National Water Conservation and Pipeline Corporation) v Meshack M. Saboke & 2 others
    (2019) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act; judgment references Article 159(2)(d) and Article 48 of the Constitution in the delivery order

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, "Imbali v Kenya Hospital Association t/a the Nairobi Hospital (Cause E899 of 2021) [2024] KEELRC 678 (KLR)", Case Analysis (2024). Cause No E899 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/678/eng@2024-03-20

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