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ELRCPartially AllowedNot stated in judgment· [2024] KEELRC 2474 (KLR)

Rachuonyo v University of Science and Technology (Cause E053 of 2022) [2024] KEELRC 2474 (KLR)

Employment and Labour Relations Court of Kenya
11 October 2024
3,045 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled a dismissal unfair because the employer never proved its reasons, awarding five months' salary plus notice, suspension and leave pay.

What this practically means

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Executive summary

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The Claimant, engaged in September 2021 on a two-year fixed-term contract as Finance Manager for a USAID-funded project at a gross monthly salary of Kshs 618,000, was suspended on 24th June 2022, subjected to a disciplinary hearing on 18th July 2022 on 13 charges, and terminated on 22nd July 2022. He sued claiming a declaration of unlawful and unfair termination, 12 months' compensation, salary for the suspension period, salary for the unexpired 14 months of his contract, exemplary damages, notice pay, leave pay, service gratuity, certificate of service, costs and interest. The Respondent entered appearance but never filed a defence despite court indulgence; a late motion to defend was allowed in June 2024 but no response was ever filed, and judgment proceeded on the Claimant's unchallenged evidence. The court found the termination procedurally fair - nine days' notice of the disciplinary hearing with rights of representation was adequate, and no adjournment request was refused. However, because the suit was undefended, the employer's statutory burden under Section 43 of the Employment Act to prove valid and fair reasons for termination went undischarged, rendering the termination substantively unfair. The court awarded five months' salary (Kshs 3,090,000) as compensation, declining the statutory maximum since the unfairness finding rested solely on non-defence. It further awarded one month's salary in lieu of notice, the half salary withheld during suspension, and pay for 25 untaken leave days, and ordered issuance of a certificate of service plus costs. Claims for salary for the remainder of the contract, exemplary damages and service gratuity were dismissed as lacking legal or contractual basis.

Key legal issues

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01

Procedural fairness of the termination

Holding

Termination was procedurally fair

Reasoning

The Claimant was notified of 13 charges by letter dated 8th July 2022 for a hearing on 18th July 2022, giving nine calendar days (five working days) to prepare. He was informed of his right to be accompanied and to make representations. He never sought more time and was refused none, so Section 41 requirements were met.

p. 5
02

Substantive justification of the termination

Holding

Termination was substantively unfair

Reasoning

Section 43 places the burden on the employer to prove valid and fair reasons for termination. The Respondent entered appearance but never filed a defence or attended hearings, so the burden went undischarged. The Claimant's assertion that dismissal was unfair for lack of substantive justification therefore stood uncontroverted.

p. 5
03

Quantum of compensation for unfair termination

Holding

Five months' salary awarded in lieu of the 12 months claimed

Reasoning

Although unfair termination was established, the finding rested solely on the suit being undefended. Guided by Section 49 of the Employment Act and Court of Appeal authority warning against awarding the statutory maximum without justification, five months' salary (Kshs 3,090,000) was deemed sufficient.

p. 6

Legal principles established

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  • Where a suit is undefended, the employer's burden under Section 43 of the Employment Act to prove valid reasons for termination remains undischarged and the termination is substantively unjustified
  • Nine calendar days' notice of a disciplinary hearing is adequate time to prepare where the employee did not request an adjournment
  • An employee terminated for cause is not entitled to salary for the unexpired remainder of a fixed-term contract
  • Leave not taken is payable where the employer, who bears the obligation to keep employment records, leads no evidence of utilisation

Court orders

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  1. 1.A declaration that the Claimant's termination is unfair
  2. 2.An award of five (5) months salary as compensation for the unfair termination at Kshs 3,090,000/-
  3. 3.Payment of one month salary in lieu of notice at Kshs 618,000/-
  4. 4.Payment of the salary withheld during suspension at Kshs 309,000/-
  5. 5.Payment on account of leave not taken (25 days) at Kshs 515,000/-
  6. 6.An order that the Claimant be issued with a certificate of service
  7. 7.Costs of the suit
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance unfair termination claim)

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, "Rachuonyo v University of Science and Technology (Cause E053 of 2022) [2024] KEELRC 2474 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2474/eng@2024-10-11

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