Matanda v Pathfinder International Kenya (Cause E184 of 2023) [2024] KEELRC 1800 (KLR)
The bottom line
#A Kenyan court ruled an employer's termination unfair because it hid key evidence from the employee and illegally extended his probation without consent.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant was still on probation when his probation was suspended
No. The probation lapsed at the end of December 2022 because the purported extension was unilateral and without the Claimant's agreement; he was confirmed by operation of law effective 1st January 2023.
Section 42(2) of the Employment Act permits extension of a six-month probation by not more than six months only with the employee's agreement. The Respondent adduced no evidence that the Claimant agreed to the extension, and had not formally discussed or appraised his performance as its own Staff Handbook required. A probationary contract, being a contract of employment, cannot be varied without consent. Consequently the extension and the purported suspension of probation were ineffectual.
Whether termination was substantively justified
No. The Respondent failed to prove on a balance of probabilities that it had a reasonable basis to genuinely believe the Claimant falsified receipts.
The investigation report had several gaps: the allegedly genuine receipts numbers 160 and 171 were never availed to the Claimant or filed in court, the driver's name and phone number were not disclosed, and the vendor's response disputing receipts 5698, 5741 and 5761 was neither attached nor availed. The service provider Nadine Carhire and Tours had in writing confirmed the receipts genuine, and the Respondent did not controvert that letter. The Claimant's evidence that the receipts were genuine therefore remained uncontroverted.
Whether the disciplinary procedure met the threshold of Section 41 of the Employment Act
No. The refusal to furnish the alleged genuine receipts vitiated the procedure, and there is no evidence the Respondent considered the Claimant's representations.
Although the Claimant was issued a notice to show cause, responded, and was heard with his counsel, the Respondent declined to avail receipts 160 and 171 which were the only evidence for the first charge. Neither the minutes nor the termination letter referred to the Claimant's representations, and neither document identified the falsified receipts or how the figure of Kshs.32,250 was computed. The procedure therefore failed the mandatory requirements of Section 41.
Quantum of compensation for unfair termination
The equivalent of 2 months' gross salary, Kshs.1,662,023.32, under Section 49(1)(c) of the Employment Act.
The court considered the short duration of employment (73/4 months), the absence of recorded misconduct or poor performance, the Claimant's expressed wish to remain in employment, his own contribution in affording the Respondent reason to doubt his honesty, and the fact that the Respondent had already paid the non-contentious dues including gratuity. These factors led the court to award the equivalent of two months' salary.
Legal principles established
#- A probationary period may only be extended with the agreement of the employee; a unilateral extension is unlawful and inefiectual
- An employee must be availed the evidence the employer intends to rely on in a disciplinary hearing as a requirement of fair hearing
- The employer bears the burden of proving valid and fair reason and fair procedure on a balance of probabilities
Court orders
#- 1.Declaration that termination of employment by the Respondent was unfair
- 2.Declaration that the unilateral extension of probation by the Respondent was unlawful
- 3.Equivalent of 2 months gross salary Kshs.1,662,023.32 as compensation for unfair termination
- 4.Each party to bear their own costs
- Jurisdiction invoked
- Original jurisdiction under the Employment Act, 2007 (ss. 41, 42, 43, 45, 47(5), 49) in the Employment and Labour Relations Court
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Matanda v Pathfinder International Kenya (Cause E184 of 2023) [2024] KEELRC 1800 (KLR)", Case Analysis (2024). Cause No E184 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1800/eng@2024-07-15
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.