Were v Contemporary Electricals Enterprises Ltd (Cause 972 of 2017) [2024] KEELRC 1171 (KLR)
The bottom line
#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
#Executive summary
#Key legal issues
#Whether the Claimant was on a probationary contract at the date of dismissal
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.
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.
Whether the termination was substantively fair
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.
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.
Whether the termination was procedurally fair
No. Section 41 of the Employment Act was not complied with; no hearing or notification of reasons preceded the summary dismissal.
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.
Reliefs
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.
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.
Legal principles established
#- 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
#- 1.Declaration that termination of the Claimant's employment was unlawful
- 2.Salary for days worked in February 2017
- 3.Equivalent of 3 months gross salary as compensation
- 4.Certificate of service
- 5.50% costs of this suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance unfair termination claim)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#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.