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ELRCPartially AllowedStatement of Claim dated May 18, 2017 (Cause number not stated in judgment)· [2024] KEELRC 1238 (KLR)

Wanjala v Devyani Food Industries (K) Limited (Cause 990 of 2017) [2024] KEELRC 1238 (KLR)

Employment and Labour Relations Court
23 May 2024
1,199 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant sued for wrongful dismissal, alleging he was employed in 2010 and summarily dismissed on September 6, 2016 on a monthly salary of Kshs. 27,600. The Respondent, which amended its name from Sameer Agriculture & Livestock Kenya Limited to Devyani Food Industries (K) Limited, contended that the Claimant was employed on March 1, 2015 as a Senior Merchandiser, that his performance deteriorated despite several notices, and that he was accorded a hearing before termination, which it maintained was lawful. The court framed two issues: whether the termination was lawful and fair, and whether the Claimant was entitled to the remedies sought. Relying on Section 41 of the Employment Act and the authorities of KSRITAWU v Kinyanui and Jane Samba Mkala v Ol Tukai Lodge Limited, the court held that an employer alleging poor performance must show measurable targets, a performance measurement policy, and a fair process including an opportunity to improve. Here the Claimant received only one warning letter before termination, with no clear targets, no appraisal, no support plan and no capability hearing. The termination was found substantively and procedurally unfair. The court awarded four months' salary (Kshs. 110,400) as compensation, with interest at court rates from judgment, a certificate of service and costs. The leave pay claim failed for lack of particularisation and the claim for the remainder of the contract was disallowed.

Key legal issues

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01

Whether termination on grounds of poor performance was substantively and procedurally fair

Holding

The termination was substantively and procedurally unfair because the Claimant had no clear targets, no performance appraisal, no support plan to improve, and no capability hearing as required by Section 41 of the Employment Act

Reasoning

The court applied Section 41 of the Employment Act, requiring the employer to explain the reasons for termination and hear the employee's representations. Following Jane Samba Mkala v Ol Tukai Lodge Limited, an employer fronting poor performance must demonstrate a policy or practice of performance measurement and a fair process. The Claimant received only one warning letter on August 9, 2016 before termination on September 6, 2016, with no clear targets, no improvement plan and no capability hearing.

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02

Whether the Claimant was entitled to the remedies sought

Holding

Four months' salary in compensation was awarded; leave pay failed for lack of particularisation; payment for the remainder of the contract was disallowed; certificate of service and costs were granted

Reasoning

In assessing compensation the court considered the Claimant's length of service and the Respondent's failure to afford him an adequate opportunity to improve. The leave pay claim failed because it was not particularised or proved, and no basis was established for payment for the remainder of the contract. A declaration as such was not separately granted, but judgment followed from the finding of unfairness.

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Legal principles established

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  • An employer terminating for poor performance must have clear measurable targets, a performance appraisal mechanism, and must give the employee a fair opportunity to improve before a capability hearing under Section 41 of the Employment Act

Court orders

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  1. 1.Judgment entered in favour of the Claimant in the sum of Kshs. 110,400 being 4 months' salary in compensation for unlawful and unfair termination of employment
  2. 2.The award to attract interest at court rates from the date of judgment until payment in full
  3. 3.The Claimant is entitled to a certificate of service
  4. 4.Costs of the case awarded to the Claimant
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (termination of employment claim)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Wanjala v Devyani Food Industries (K) Limited (Cause 990 of 2017) [2024] KEELRC 1238 (KLR)", Case Analysis (2024). Statement of Claim dated May 18, 2017 (Cause number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1238/eng@2024-05-23

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