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ELRCPartially AllowedNot stated in judgment (Memorandum of Claim dated 19th August 2022)· [2024] KEELRC 1727 (KLR)

Magonga v Safe Energy Limited (Employment and Labour Relations Cause E767 of 2022) [2024] KEELRC 1727 (KLR)

Employment and Labour Relations Court
5 July 2024
AMANNA NGIBUINI MWAURE
1,371 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled the dismissal unfair because the employer gave no notice or hearing, awarding the worker Kshs 300,000 plus costs.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Chief Security Officer around November 2018 on a basic salary of Kshs 100,000, sued for unlawful and unfair termination, alleging that his salary ceased without explanation from December 2021 and that he was summarily dismissed in May 2022 without notice, valid reasons or a disciplinary process. He relied on sections 41, 43, 45 and 49(1) of the Employment Act and cited James Ooko Seda v Adsite Limited (2019) eKLR. The Respondent neither entered appearance nor filed a defence, so the claimant's pleadings and evidence stood uncontroverted. The court framed two issues: whether the termination was unprocedural, illegal and unfair, and whether the claimant was entitled to the reliefs sought. Holding that the mandatory requirements of valid reason and procedural fairness under sections 45(1) and 41(1) had not been met, the court found the termination unlawful and unfair. On remedies, it awarded one month's salary in lieu of notice (Kshs 100,000) and two months' salary (Kshs 200,000) as compensation for unlawful termination, totalling Kshs 300,000 with interest at court rates from the date of judgment, plus costs and a certificate of service within 14 days. Claims for service/severance pay, salary arrears, accrued leave, commission/gratuity and house allowance were declined for want of proof. Judgment was delivered virtually in Nairobi on 5th July 2024.

Key legal issues

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01

Whether termination was unprocedural, illegal and unfair

Holding

Termination was unlawful and unfair as the respondent adduced no evidence or defence

Reasoning

The respondent neither entered appearance nor filed a defence. The claimant's uncontroverted evidence was that his salary ceased in December 2021 without explanation and that he received no notice or disciplinary process. The court applied sections 41(1) and 45(1) of the Employment Act, which mandate a valid reason and an explanation before termination, and found the claimant had established unlawful and unfair termination.

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02

Entitlement to reliefs

Holding

Only notice pay and compensation for unlawful termination proved; other heads declined for want of proof

Reasoning

The court awarded one month's salary in lieu of notice and two months' salary as compensation for unlawful termination under section 49. Service/severance pay, salary arrears, leave, commission/gratuity and house allowance were all declined because the claimant did not substantiate them with evidence, notwithstanding the uncontroverted nature of the claim generally.

p. 3

Legal principles established

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  • An employer must not terminate employment without a valid reason and must follow fair procedure including explanation to the employee
  • An uncontroverted claim, where the respondent enters no appearance or files no defence, may found judgment for the claimant

Court orders

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  1. 1.Judgment entered for the Claimant for unlawful and unfair termination
  2. 2.One month's salary in lieu of notice of Kshs 100,000/-
  3. 3.Two months' salary equivalent, Kshs 200,000/-, as compensation for unlawful termination
  4. 4.Total award of Kshs 300,000 plus interest at court rates from date of judgment until full payment
  5. 5.Claimant awarded costs of the suit
  6. 6.Claimant to be issued his certificate of service within 14 days

Authorities

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Legislation

  • Employment ActSection 43
  • Employment ActSection 44(4)
  • Employment ActSection 45(1)
  • Employment ActSection 46
  • Employment ActSection 49(1)
  • Employment ActSection 41(1)
  • Employment ActSection 42(1)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (1)

  • James Ooko Seda v Adsite Limited
    (2019) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Employment Act, ss 41, 43, 45, 46, 49(1))

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, "Magonga v Safe Energy Limited (Employment and Labour Relations Cause E767 of 2022) [2024] KEELRC 1727 (KLR)", Case Analysis (2024). Not stated in judgment (Memorandum of Claim dated 19th August 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1727/eng@2024-07-05

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