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ELRCPartially AllowedNot stated in the judgment· [2024] KEELRC 1557 (KLR)

Hamisi v Modern Coast Express Limited (Cause E071 of 2023) [2024] KEELRC 1557 (KLR)

Employment and Labour Relations Court
13 June 2024
3,280 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~13 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The claimant, employed on 2 April 2012 as Head of Information Technology, was suspended on 4 July 2020 on allegations of poor performance and incompetence. While on suspension he received a notice to show cause dated 27 July 2020 inviting him to a disciplinary hearing on 28 July 2020, which was cancelled due to COVID-19. On resuming duty he was directed to hand over, then subjected to an unannounced conference-call disciplinary hearing on 7 August 2020 and issued with a summary dismissal letter the same day for gross misconduct. He claimed compensation of 12 months' pay, notice pay, service pay, leave pay, public holiday pay, a certificate of service and costs. The court framed three issues: unfair termination, remedies, and costs. It held the respondent complied with Sections 41 and 43 of the Employment Act up to the original hearing date, but the rescheduled hearing of 7 August 2020 was never communicated to the claimant, breaching the mandatory protections of Section 41 and rendering the termination unfair. However, considering the claimant's poor work record, refusal to accept the notice to show cause and refusal to answer questions at the hearing, the court assessed compensation at zero under Section 45(5). Notice pay of Ksh. 86,532 was awarded for the procedural lapse. Service pay was denied as the claimant was registered with NSSF under sections 35(5) and (6). Leave pay of Ksh. 80,907.20 was awarded for 33 accrued days within the 18-month limit in Section 28(4), computed on basic salary. The public holidays claim was declined for lack of particulars. Judgment was entered for the claimant with each party bearing its own costs.

Key legal issues

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01

Whether the termination was procedurally fair under Section 41 of the Employment Act

Holding

Termination was unfair because the rescheduled disciplinary hearing date of 7 August 2020 was not communicated to the claimant

Reasoning

The respondent complied with Sections 41 and 43 up to issuing the notice to show cause and arranging the first hearing on 28 July 2020. However, the hearing was rescheduled and the claimant was never notified of the new date of 7 August 2020, so he appeared without notice and without opportunity to bring an employee of his choice. The mandatory protections of Section 41 were therefore breached, rendering the summary dismissal unjustified despite valid grounds of misconduct.

p. 5
02

Whether compensation should be awarded for the unfair termination

Holding

Compensation assessed at zero under Section 45(5) due to the claimant's conduct and culpability

Reasoning

Although termination was unfair for want of due process, the claimant had a poor work record, was absent without permission, refused to accept the notice to show cause and refused to respond to questions at the hearing. Section 45(5) requires conduct and culpability to be considered. Awarding compensation would reward gross misconduct, so nil compensation suffices, though notice pay remains due for the procedural lapse.

p. 5
03

Whether the claimant was entitled to service pay

Holding

Claim declined as the claimant was registered with NSSF and NHIF

Reasoning

The claimant's payment statement showed remittances of statutory dues to NSSF and NHIF, and the respondent filed these records. Under sections 35(5) and (6) of the Employment Act, an employee registered with NSSF is excluded from claiming service pay. The claim for service pay for 9 years therefore fails.

p. 6
04

Whether the claimant was entitled to accrued leave pay

Holding

Awarded leave pay of Ksh. 80,907.20 for 33 days within the 18-month statutory limit

Reasoning

Off days under Section 27 and leave days under Section 28 of the Act are distinct. Section 28(4) requires leave to be taken within 18 months unless carried over with the employer's consent. Without records of carry-over, only 33 days within 18 months are payable, computed on the claimant's basic salary of Ksh. 73,552.

p. 6

Legal principles established

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  • Section 41 of the Employment Act is mandatory: before a disciplinary hearing the employee must be given notice to attend and be allowed to call another employee of his choice
  • Where a disciplinary hearing is rescheduled and the new date is not communicated to the employee, termination is unfair for want of due process, but the employee may still be denied compensation under section 45(5) having regard to his conduct
  • A suspension is a right available to an employer on reasonable grounds of suspected misconduct to enable further investigation

Court orders

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  1. 1.Judgment entered for the claimant against the respondent
  2. 2.Compensation assessed at zero (0)
  3. 3.Notice pay Ksh. 86,532
  4. 4.Leave days Ksh. 80,907.20
  5. 5.Each party bears its costs

Authorities

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Legislation

  • Employment Act, 2007Sections 41, 41(2), 43, 44(3) and (4), 45(5), 27, 28, 28(4), 35(5) and (6), 51

Cases cited (6)

  • Mary Chemweno Kiptui v Kenya Pipeline Company Limited
    [2014] eKLR
  • Mutwol v Moi University
    (Civil Appeal 118 of 2019) [2022] KECA
  • Oyombe v Eco Bank Limited
    (Civil Appeal 185 of 2017) [2022] KECA 540 (KLR) (13 May 2022)
  • Paul Wanyangah v Market Development Trust t/a Kenya Markets Trust
    [2017] eKLR
  • Jennifer Osodo versus Teachers Service Commission
    [2013] eKLR
  • Lillian W. Mbogo-Omollo v Cabinet Secretary Ministry of Public Service and Gender & another
    [2020] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under Article 162(2) of the Constitution and the Employment Act, 2007 (implied; not expressly quoted)

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, "Hamisi v Modern Coast Express Limited (Cause E071 of 2023) [2024] KEELRC 1557 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1557/eng@2024-06-13

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