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ELRCPartially Allowednot stated in the judgment as provided· [2024] KEELRC 1051 (KLR)

Njeru v Indus Logistics Limited (Employment and Labour Relations Cause 311 of 2017) [2024] KEELRC 1051 (KLR)

Employment and Labour Relations Court
9 May 2024
1,493 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Employment Court ruled a dismissal unfair because the employer held no proper disciplinary hearing, awarding the employee five months' salary and costs.

What this practically means

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Executive summary

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The claimant, a motorcycle rider employed by the respondent from February 2014 until termination on 5th August 2016, sued for compensation for unlawful and unfair termination, service pay and damages for discrimination. The respondent asserted the claimant had a record of lateness, rudeness, ignoring instructions, conducting boda-boda work, and delaying payment of a customer's cheque causing storage/penalty charges, leading to termination after disciplinary meetings, with terminal dues paid. RW1 conceded in cross-examination that no notice to show cause or formal charges were issued, no witnesses testified against the claimant, and no direct evidence was adduced at the disciplinary meetings. Applying section 41 of the Employment Act as articulated in Janet Chepkemoi Machina v Laikipia University, the court held the process fell below the minimum requirements of a fair hearing and that the termination violated sections 41, 43 and 44, rendering it unlawful and unfair. On relief, the court noted the claimant served over two years, admitted lateness, and had no work plan or performance appraisal; it awarded compensation of five months' salary (Kshs.100,000/=) under section 49(1)(c) and (4), informed also by Michael Odhiambo Opiyo v Bidco Africa Limited. Service pay was refused because the claimant was registered with NSSF, and the discrimination claim failed for want of evidence. Judgment was entered for the claimant with interest at court rates and costs of the suit. Judgment dated 9th May 2024 at Nairobi, delivered by Mathews Nderi Nduma, Judge.

Key legal issues

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01

Whether the termination was for a valid reason following a fair procedure

Holding

The termination was unlawful and unfair because no formal charges were framed, no witnesses testified against the claimant and no tangible reasons were given, contrary to sections 41, 43 and 44 of the Employment Act.

Reasoning

RW1 admitted no notice to show cause or charges were issued, no witnesses testified against the claimant, and no direct evidence was adduced at the disciplinary meeting. The court applied section 41 as explained in Janet Chepkemoi Machina, holding the process fell below the minimum fair-hearing requirements, and concluded the respondent did not adhere to sections 41, 43 and 44.

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02

Whether the claimant is entitled to the reliefs sought

Holding

The claimant was awarded the equivalent of five months' salary (Kshs.100,000/=) as compensation under section 49; service pay and discrimination damages were refused.

Reasoning

Considering the claimant's two years of service, his admitted adverse record of lateness, the absence of a work plan or appraisal reports, and that he was paid for days worked and one month in lieu of notice, the court awarded five months' salary under section 49(1)(c) and (4). Service pay was refused due to NSSF registration and the discrimination claim failed for want of evidence.

p. 3

Legal principles established

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  • Under section 41 of the Employment Act the employee is entitled to a fair hearing, including knowing the charges, hearing and cross-examining witnesses, and calling one's own witnesses.
  • A valid reason for termination must be crystallised in a notice to show cause before the employee is invited to a disciplinary meeting.
  • An employer must gauge performance through a work plan with set performance indicators and targets and appraisal reports; otherwise sanctions rest on conjecture.

Court orders

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  1. 1.Kshs. 100,000/= in compensation for unlawful and unfair termination
  2. 2.Interest at court rates from date of judgment till payment in full
  3. 3.Costs of the suit to the claimant

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 44
  • Employment Act, 2007section 49(1)(c) and (4)
  • Employment Act, 2007section 36

Cases cited (2)

  • Janet Chepkemoi Machina and another v Laikipia University
    [2021] KLR
  • Michael Odhiambo Opiyo v Bidco Africa Limited
    [2021] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 36, 41, 43, 44, 49) — specific constitutional/statutory hook not expressly pleaded in the judgment

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, "Njeru v Indus Logistics Limited (Employment and Labour Relations Cause 311 of 2017) [2024] KEELRC 1051 (KLR)", Case Analysis (2024). not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1051/eng@2024-05-09

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