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ELRCPartially AllowedCause No 972 of 2017· [2024] KEELRC 1171 (KLR)

Were v Contemporary Electricals Enterprises Ltd (Cause 972 of 2017) [2024] KEELRC 1171 (KLR)

Employment and Labour Relations Court
6 May 2024
3,494 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed that a probation clause buried in an HR manual cannot be used to dismiss an employee without reason, notice or a hearing.

What this practically means

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Executive summary

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The Claimant sued for unfair and unlawful termination of employment, alleging she was engaged on 3rd October 2016 on a one-year renewable contract at Kshs.65,000/= gross monthly salary with no probationary clause, and was summarily dismissed on 6th February 2017 without reason, notice or hearing. She sought a declaration of unlawfulness, 12 months' salary compensation, pay for February 2017 days worked, 6 leave days, a certificate of service and costs. The Respondent asserted she was on a 3-month probation under Clause 3.7 of its Human Resource Manual, 2016, that her performance was poor, and that she had altered her appointment letter and stolen documents from her personal file. The court framed three issues: probationary status, fairness of termination, and reliefs. It found the probation clause could not bind the Claimant because the HR Manual was neither given to her nor executed by her, a probation clause being a fundamental contractual term that must be brought to the employee's attention at execution. In any event, the 3-month probation lapsed without evaluation or extension, and she was deemed confirmed by operation of law. On the merits, the dismissal letter gave no reason, the unsigned and undated letter alleging unsuccessful probation lacked authenticity, and no evidence of appraisal or performance concerns existed; procedural fairness under Section 41 was also not observed. The court declared the termination unlawful, awarded pay for February 2017 days worked, compensation equivalent to 3 months' gross salary under Section 49(1)(c), and a certificate of service, and granted 50% costs. The claim for 12 months' compensation and 6 leave days was declined.

Key legal issues

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01

Whether the Claimant was on a probationary contract at the date of dismissal

Holding

No. The Human Resource Manual containing the probation clause was not brought to the Claimant's attention or signed, and even if applicable, the 3-month probation had expired without evaluation or extension, so she was deemed a confirmed employee.

Reasoning

The letter of appointment and signed Terms and Conditions contained no probationary clause. Clause 3.7 of the HR Manual was in a document the Claimant never received or executed. The court held a probation clause is fundamental and must be brought to the employee's attention at contract execution. Even assuming the manual applied, no evaluation or extension occurred; the probation lapsed after 3 months, and by operation of law the Claimant transitioned to full-time employment by 6th February 2017.

p. 5
02

Whether the termination was substantively fair

Holding

No. The dismissal letter gave no reason ('best interest of the Finance Department'), and the unsigned, undated letter alleging poor performance lacked authenticity; no evidence of appraisals or performance concerns was adduced.

Reasoning

Section 45 requires a valid and fair reason. The dismissal letter gave no reason. The alleged letter on unsuccessful probation was unsigned, undated, not on letterhead and never shown to have been received by the Claimant, so it was inconsequential. No evaluation, appraisal or recorded concerns existed, and the theft allegation was unsupported by any police report or charges. Substantive justification was therefore not demonstrated.

p. 7
03

Whether the termination was procedurally fair

Holding

No. Section 41 of the Employment Act was not complied with; no hearing or notification of reasons preceded the summary dismissal.

Reasoning

Having found the Claimant was not on probation, the Respondent was obliged to follow Section 41 — explain the reasons and hear the employee before termination. RWI's implicit position that probationary employees may be dismissed without process was rejected as contrary to law. The summary dismissal without notice or hearing was procedurally flawed and unfair within Section 45.

p. 8
04

Reliefs

Holding

Declaration granted; February 2017 salary for days worked granted; 3 months' gross salary compensation awarded under Section 49(1)(c); certificate of service ordered under Section 51; 6 leave days claim declined.

Reasoning

Unfair termination merited the declaration. No evidence showed payment for February 2017 days worked. The 6 leave days claim failed for want of evidence. Compensation under Section 49(1)(c) was moderated to 3 months' gross salary given the short (about 4 months) service, the Claimant's contribution to the termination, and her failure to appeal or express a wish to remain. A certificate of service is a statutory entitlement.

p. 8

Legal principles established

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  • A probationary clause is a fundamental term of the contract of employment and cannot be introduced through a document (such as an HR manual) not brought to the employee's attention at the time of executing the contract.
  • Where an employer fails to confirm an employee after expiry of the probationary period, the employee is deemed confirmed by operation of law.
  • For a termination to be fair, the employer must demonstrate both a valid and fair reason (substantive fairness) and adherence to fair procedure.
  • An employee on probation is not exempt from procedural fairness in termination.

Court orders

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  1. 1.Declaration that termination of the Claimant's employment was unlawful
  2. 2.Salary for days worked in February 2017
  3. 3.Equivalent of 3 months gross salary as compensation
  4. 4.Certificate of service
  5. 5.50% costs of this suit

Authorities

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Legislation

  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 42(2)
  • Employment Act, 2007Sections 41, 43, 44, 45 and 47(5)
  • Employment Act, 2007Section 49(1)(c)
  • Employment Act, 2007Section 51
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B

Cases cited (6)

  • Mercy Njoki Karingithi V Emrald Hotels Resorts & Lodges Ltd
    (2014) eKLR
  • Peris Nyambura Kimani V Albeit Petroleum Ltd
    (2014) eKLR
  • Walter Ogal Anuro V Teachers Service Commission
    (2013) eKLR
  • Naima Khamis V Oxford University Press (E.A) Ltd
    (2017) eKLR
  • Jane Samba Mukala V Ol Tukai Lodge Ltd
    (2013) eKLR
  • Pius Machafu Isindu V Lavington Security Guards Ltd
    (2017) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance 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, "Were v Contemporary Electricals Enterprises Ltd (Cause 972 of 2017) [2024] KEELRC 1171 (KLR)", Case Analysis (2024). Cause No 972 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1171/eng@2024-05-06

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