Rono v Delish Nail and Beauty Limited (Cause E038 of 2023) [2024] KEELRC 2472 (KLR)
The bottom line
#Kenya's Employment Court confirmed that even probationary employees must be heard and notified before dismissal, awarding an unfairly terminated accountant compensation.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant's employment was unlawfully terminated
Yes - the termination was unfair. The Respondent's claim of mutual separation was unproven and RW1's testimony was contradictory; the Claimant, though on probation, was neither given notice nor heard.
The Respondent asserted mutual separation but led no credible evidence; the final dues certificate did not indicate the mode of separation. RW1's testimony was contradictory on whether the Claimant resigned, was a poor performer, or was issued a show cause letter (which was never produced). The Claimant, having served 2 months and 3 weeks of a 3-month probation, was dismissed without termination notice and without a hearing. Relying on Monica Munira Kibuchi, probationary employees are entitled to the Section 41 procedural safeguards, so the dismissal was unfair.
Whether the Claimant was entitled to compensation under Section 49 of the Employment Act
Yes - 4 months' salary (Kshs 340,000) awarded as compensation for unfair termination.
The court considered the abrupt, demeaning and unexplained nature of the dismissal, the fact that the Claimant was head-hunted and resigned from previous employment, and his inability to secure comparable employment since. Weighing these factors against his short service of 2 months and 3 weeks, the court deemed 4 months' salary sufficient compensation.
Whether the Claimant was entitled to pay in lieu of notice
Yes - Kshs 19,800 awarded, as the Respondent produced no proof of payment despite RW1's assertion.
The Claimant was evidently not given the 7 days' termination notice applicable to probationary contracts. Although RW1 testified that pay in lieu of notice was included in the final dues of Kshs 148,041, no proof was led in that regard. The court therefore found the claim merited and awarded Kshs 19,800.
Whether exemplary damages and damages for the unexpired contract term were payable
No - both claims dismissed.
Exemplary damages are generally not payable in breach of employment contract cases, and the circumstances here met none of Lord Devlin's three categories in Rookes v Benard. Damages for the unexpired term are not available under Section 49(4)(f) unless the contract expressly provides for them, which it did not; loss of earnings is capped at 12 months' salary in any event.
Legal principles established
#- An employer is under a duty to hear an employee on a probationary contract before termination, Section 41(2) of the Employment Act having been declared null and void in so far as it excludes probationary employees from procedural safeguards
- A final dues certificate does not of itself prove that a separation was mutual
- Damages equivalent to the unexpired term of a contract are not payable under Section 49(4)(f) of the Employment Act unless the contract expressly provides for such payment
- Exemplary damages are generally not payable in cases of breach of employment contract
- Reinstatement is not an automatic right but a discretionary remedy dependent on practicability
Court orders
#- 1.4 months' salary as compensation for unfair termination at Kshs 340,000/=
- 2.Pay in lieu of notice at Kshs 19,800/-
- 3.Costs of the suit and interest until payment in full
- Jurisdiction invoked
- Original jurisdiction of the Employment and Labour Relations Court under the Employment Act, 2007 (no specific constitutional provision cited for jurisdiction)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Rono v Delish Nail and Beauty Limited (Cause E038 of 2023) [2024] KEELRC 2472 (KLR)", Case Analysis (2024). Cause No E038 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2472/eng@2024-10-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.