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ELRCPartially AllowedCause No E727 of 2020· [2024] KEELRC 1261 (KLR)

Mukono v Dan K Ameyo Francis Etole t/a Guto, Etole & Co Advocates (Cause E727 of 2020) [2024] KEELRC 1261 (KLR)

Employment and Labour Relations Court
15 May 2024
4,881 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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A Nairobi court ruled a lawyer's summary dismissal of her legal assistant unfair, but most of his pay claims were too old or unproven to succeed.

What this practically means

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Executive summary

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The Claimant, a Legal Assistant employed by the Respondent advocate from 30th April 2012, sued for unfair summary dismissal effected on 13th November 2017, salary arrears, leave and house allowance, refunds of PAYE and NHIF deductions, damages for discrimination, and a certificate of service. The dismissal followed the striking out of Petition No. 9 of 2017 after affidavits were commissioned improperly. The Respondent filed a Memorandum of Response alleging negligence but adduced no evidence at trial. The court framed two issues: whether the termination was unfair and whether the Claimant was entitled to the reliefs. On substance, the court held the letter of 2nd November 2017 amounted to a show-cause letter and that the employer may have had a reason, but since the Respondent tendered no evidence, it failed to prove a valid and fair reason under Section 43. On procedure, no disciplinary hearing was held as required by the mandatory Section 41, rendering the dismissal unfair. The court awarded salary for 13 days worked in November 2017, pay in lieu of leave for 3 years (the limit of its jurisdiction), compensation equivalent to 4 months' gross salary under Section 49(1)(c), and a certificate of service. Claims for salary arrears from 2016 to June 2017 were time-barred under Section 90; house allowance failed due to a consolidation clause; PAYE and NHIF claims failed for want of evidence and lack of jurisdiction over tax matters; and the discrimination claim was unproved. Judgment was entered for the Claimant with 50% costs and interest from the date of judgment. Dated, signed and delivered virtually at Nairobi on 15th May 2024 by Dr. Jacob Gakeri, Judge.

Key legal issues

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01

Whether the termination was substantively justified

Holding

The employer failed to prove a valid and fair reason because it adduced no evidence at trial, though the letter of 2nd November 2017 amounted to a show-cause letter

Reasoning

Although the Claimant argued the demand for explanation was not a notice to show cause, the court held it was, as it demanded a specific account of the dismissal of Petition No. 9 of 2017 and defective affidavits. The Claimant's own response revealed lapses in commissioning affidavits, so the employer may have had a reason, but because the Respondent tendered no evidence, it failed to discharge its burden under Section 43 to prove a valid and fair reason.

p. 6
02

Whether the termination procedure was fair under Section 41

Holding

Procedure was unfair; no disciplinary hearing was conducted

Reasoning

Section 41 prescribes mandatory procedural precepts: notification of allegations and a hearing. The record showed only a written demand for explanation and a written response, with no evidence of any communication between the response of 6th November 2017 and the termination on 10th November 2017. The Claimant was therefore not taken through a disciplinary process, rendering the summary dismissal procedurally unfair.

p. 7
03

Limitation of salary arrears claims

Holding

Claims for salary from 2016 to June 2017 were time-barred under Section 90

Reasoning

Section 90 of the Employment Act requires civil actions arising from a contract of service to be commenced within three years. Using the June 2017 salary as the latest claim, the cause of action arose on 30th June 2017 and limitation expired on 1st July 2020, before the suit filed on 10th November 2020. Section 90 is mandatory and confers no discretion to extend time, so the court declined jurisdiction over those claims.

p. 8
04

House allowance claim

Holding

Declined; salary was consolidated

Reasoning

Section 31 of the Employment Act obliges employers to provide housing unless the contract provides for consolidation. Clause 4 of the appointment letter expressly paid a lump sum covering salary and all allowances. Since the Respondent did not provide housing, the consolidation clause meant no separate house allowance was payable, rendering the claim unsustainable.

p. 8
05

Compensation under Section 49(1)(c)

Holding

Equivalent of 4 months gross salary awarded

Reasoning

Having found the dismissal unfair, the court exercised discretion under Section 49(1)(c), considering about 5 years of service, absence of an appeal or wish to remain employed, a clean disciplinary record, and the Claimant's substantial contribution to the termination through negligent handling of affidavit commissioning. These factors led the court to fix compensation at the equivalent of 4 months gross salary as fair.

p. 10
06

Discrimination claim

Holding

Not proved; general damages declined

Reasoning

Article 27 of the Constitution and Section 5(3) of the Employment Act outlaw discrimination, but the Claimant provided no particulars and no evidence that other employees were paid while he was not, nor why he remained employed for years without pay without complaint. The court found it atypical that an employee would work three consecutive months unpaid and do nothing, concluding the Claimant was not forthright and the claim was unmerited.

p. 10

Legal principles established

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  • For a termination to pass the fairness test, the employer must prove both a valid and fair reason (substantive justification) and procedural fairness; failure to adduce evidence means the employer fails to justify the termination even where the claim is undefended.
  • Section 41 of the Employment Act is mandatory; termination without a disciplinary hearing is unfair.
  • Section 90 of the Employment Act imposes a mandatory three-year limitation period which the court has no discretion to extend.
  • In an undefended claim, the claimant still bears the burden of proving the case on a balance of probabilities.

Court orders

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  1. 1.Declaration that the summary dismissal of the Claimant by the Respondent was unfair
  2. 2.Award of unpaid salary for 13 days worked in November 2017
  3. 3.Award of pay in lieu of leave for 3 years
  4. 4.Award of the equivalent of 4 months gross salary as compensation under Section 49(1)(c) of the Employment Act
  5. 5.Issuance of a certificate of service to the Claimant
  6. 6.Respondent to pay 50% of the costs of the suit
  7. 7.Interest at court rates from date of judgment till payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 49(1)(c)
  • Employment Act, 2007Section 51
  • Employment Act, 2007Section 90
  • Employment Act, 2007Section 31(1)
  • Employment Act, 2007Section 5(3)
  • Evidence ActSections 107 and 109
  • Limitation of Actions Act (Cap 22)Section 4(1)
  • Income Tax ActNot specified
  • Constitution of KenyaArticles 27, 48, 159(2)(d)
  • Civil Procedure Act (Chapter 21)Section 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (15)

  • County Assembly of Kisumu & 2 others V Kisumu County Assembly Service Board & 6 others
    (2015) eKLR
  • Mary Chemweno Kiptui V Kenya Pipeline Co. Ltd
    (2014) eKLR
  • Galgalo Jarso Jillo V Agricultural Finance Corporation
    (2021) eKLR
  • Humphrey Munyithia Mutemi V Soluxe International Group of Hotels and Lodges Ltd
    (2020) eKLR
  • Monica Kanini Mutua V Al- Arafat Shopping Centre and another
    (2018) eKLR
  • Kirugi & another V Kabiya & another
    (1987) KLR 347
  • Nicholus Kipkemoi Korir V Hatari Security Guards Ltd
    (2018) eKLR
  • Gichinga Kibutha V Caroline Nduku
    (2018) eKLR
  • Jackson K. Tuitoek V Stephen Tangus Salienyi & 2 others
    (2013) eKLR
  • Naima Khamis V Oxford University Press (E.A) Ltd
    (2017) eKLR
  • Walter Ogal Anuro V Teachers Service Commission
    (2013) eKLR
  • Pius Machafu Isindu V Lavington Security Guards Ltd
    (2017) eKLR
  • Peter K. Waweru V Republic
    (2006) KLR
  • Andrews V Law Society of British Columbia
    (1989) 1 SCR 321
  • Nyarangi & others V Attorney General
    (2008) KLR 688
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (Sections 41, 43, 45, 47(5), 49, 51, 90) and Article 27 of the Constitution invoked

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, "Mukono v Dan K Ameyo Francis Etole t/a Guto, Etole & Co Advocates (Cause E727 of 2020) [2024] KEELRC 1261 (KLR)", Case Analysis (2024). Cause No E727 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1261/eng@2024-05-15

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