Theuri v Integrated Payment Services Limited (Cause 2220 of 2017) [2024] KEELRC 1506 (KLR)
The bottom line
#Kenya's Employment Court confirmed employers can end probationary jobs without a hearing or reasons, as long as they follow the probation contract.
What this practically means
#Executive summary
#Key legal issues
#Whether the extension of probation was lawful
The letter dated 10th July 2017, signed by both Olaka and the Claimant, extended probation by 6 months to 10th November 2017 with her agreement, as permitted by Section 42(2); no reasons for extension were required
The Court preferred the Respondent's certified, signed copy of the extension letter over the Claimant's unsigned copy showing 10th October 2017. The Claimant admitted signing the extension. Section 42(2) requires only the Employer's proposal and the Employee's agreement; no obligation to justify extension exists.
Whether the standards of fair termination under Sections 41, 43 and 45 apply to probationary contracts
No - during probation either party may terminate for any or no reason; the Court declined to follow Monica Munira Kibuchi and applied Danish Jalang'o and O'Donovan
Probation is an inchoate employment relationship. Imposing hearing requirements would defeat the purpose of probation. Section 42(1) is a distinct, standalone procedure; Section 4(6) of the Fair Administrative Action Act permits a different procedure under written law, so Article 47 does not import a right to be heard in probationary termination.
Whether the Schedule 6 performance development procedure of the Staff Handbook applies to probationary employees
It does not; its multi-stage hearings and timelines cannot be accommodated within a maximum 12-month probationary period
Schedule 6 involves capability hearings, performance development plans, warnings and appeals modelled on Section 41 disciplinary procedures, which are impracticable within the limited lifespan of probationary contracts. It applies only to regular employees.
Whether the Claimant's terminal dues and compensation claims were merited
Terminal dues were paid in accordance with the contract and exceeded the statutory minimum notice; no compensation or damages were due as termination was fair and lawful
The contract required 1-month notice or pay, which was given. Section 42(4) permits as little as 7 days' notice or pay for probationers. Non-confirmation after the extended probation without hearing was lawful, and the injunction could not confirm a probationary employee.
Legal principles established
#- A probationary period may be extended by up to 6 months with the employee's agreement, and an aggregate of 12 months may not be exceeded (Section 42(2) and (3) Employment Act)
- During probation, parties are free to terminate for any or no reason; Sections 41, 43 and 45 do not apply to probationary contracts
- Section 42(1) of the Employment Act is a written law under Section 4(6) of the Fair Administrative Action Act permitting a different procedure; no hearing is required on termination of probationary employment
Court orders
#- 1.The Claim is declined
- 2.No order on the costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Act (employment dispute; claim founded on Article 41 Constitution and Employment Act)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Muga v CCI Kenya Limited (Cause E151 of 2023) [2025] KEELRC 2980 (KLR)[2025] KEELRC 2980 (KLR)30 Oct 2025
Cite this brief
#Cite this brief
Caselaw, "Theuri v Integrated Payment Services Limited (Cause 2220 of 2017) [2024] KEELRC 1506 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1506/eng@2024-06-14
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.