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ELRCPartially AllowedCause No E038 of 2023· [2024] KEELRC 2472 (KLR)

Rono v Delish Nail and Beauty Limited (Cause E038 of 2023) [2024] KEELRC 2472 (KLR)

Employment and Labour Relations Court
11 October 2024
3,629 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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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

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Executive summary

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The Claimant, engaged as a Senior Accountant on a one-year renewable contract with a three-month probation, sued the Respondent alleging unfair and unlawful termination effected through a WhatsApp message on 10th May 2023, after roughly two months and three weeks of service. He sought a declaration of unfair termination, damages, notice pay, compensation for the balance of the contract, exemplary damages and reinstatement. The Respondent maintained that the separation was mutual, that the Claimant had secured alternative employment and had requested release, and relied on a signed final dues certificate. It further contended that the WhatsApp messages were unauthenticated fabrications lacking a certificate under Section 106B of the Evidence Act. The court framed two issues: whether the employment was unlawfully terminated, and whether the Claimant was entitled to the remedies sought. It found the Respondent's mutual-separation claim unproven, noting the final dues certificate did not indicate the mode of separation, and RW1's testimony was contradictory, including an assertion of a show cause letter never produced. Relying on Monica Munira Kibuchi, the court held that probationary employees are entitled to a hearing, Section 41(2) having been declared null and void in so far as it excludes them, and found the dismissal unfair. The court awarded four months' salary (Kshs 340,000) as compensation and Kshs 19,800 in lieu of notice, but refused exemplary damages, compensation for the unexpired contract term and reinstatement. The Claimant was awarded costs with interest until payment in full. Judgment delivered at Nairobi on 11th October 2024 by Christine N. Baari, Judge.

Key legal issues

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01

Whether the Claimant's employment was unlawfully terminated

Holding

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.

Reasoning

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.

p. 6
02

Whether the Claimant was entitled to compensation under Section 49 of the Employment Act

Holding

Yes - 4 months' salary (Kshs 340,000) awarded as compensation for unfair termination.

Reasoning

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.

p. 7
03

Whether the Claimant was entitled to pay in lieu of notice

Holding

Yes - Kshs 19,800 awarded, as the Respondent produced no proof of payment despite RW1's assertion.

Reasoning

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.

p. 7
04

Whether exemplary damages and damages for the unexpired contract term were payable

Holding

No - both claims dismissed.

Reasoning

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.

p. 7

Legal principles established

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  • 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

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  1. 1.4 months' salary as compensation for unfair termination at Kshs 340,000/=
  2. 2.Pay in lieu of notice at Kshs 19,800/-
  3. 3.Costs of the suit and interest until payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 2
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 41(2)
  • Employment Act, 2007Section 42(1)
  • Employment Act, 2007Section 42(2)
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 49(1)(c)
  • Employment Act, 2007Section 49(4)(f)
  • Constitution of Kenya, 2010Article 24
  • Constitution of Kenya, 2010Article 27
  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 47
  • Constitution of Kenya, 2010Article 48
  • Constitution of Kenya, 2010Article 50
  • Evidence ActSection 106B

Cases cited (13)

  • Monica Munira Kibuchi & 6 others v Mount Kenya University & the A.G
    [2021] eKLR
  • Matsesho v Newton
    [2022] KEELRC 1554 (KLR)
  • Geoffrey Gikonyo Mathu v Intex Construction Company Limited
    [2017] eKLR
  • Johnson v Unisys Ltd
    [2001] UKHL 13
  • Abisalom Ajusa Magomere v Kenya Nut Company Limited
    [2014] eKLR
  • Samwel Kazungu Kambi v Nelly Ilongo & 2 others
    [2017] eKLR
  • Godfrey Allan Tolo v Tobias O Otieno & another
    [2022] eKLR
  • Osoti v Trees for the Future Inc
    KEELRC 962 (KLR)
  • NCBA Bank PLC v Cyrus Ndung'u t/a Digital Tours And Logistics
    [2021] eKLR
  • Margaret Omondi v Kenya Revenue Authority
  • Rookes v Benard
    (1964) AC 1129
  • David Mwangi Gioko & 51 others v. Nairobi City Water & Sewarage company Ltd
    (2013) eKLR
  • Telcom Kenya Ltd v. Paul Ngotwa
    (2013) eKLR
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

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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, "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.