Royal Garments Industries EPZ Limited v Wanyonyi (Appeal E202 of 2023) [2024] KEELRC 2480 (KLR)
The bottom line
#Even when an employee clearly commits gross misconduct, Kenyan employers must still give them a hearing or the dismissal is unfair — though compensation may be minimal.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the trial learned Magistrate erred in finding that the Respondent was unprocedurally terminated
- 2.Whether the trial learned Magistrate erred in awarding the Respondent maximum compensation of 12 months' salary
Key legal issues
#Whether the Respondent's summary dismissal was substantively justified
The Appellant had a valid reason to dismiss the Respondent - she admitted in her response to the show cause letter that she was involved in a fight, amounting to gross misconduct under section 44 of the Employment Act
The court noted that the Respondent responded to the show cause letter admitting involvement in the fight and apologizing. Upon her own admission, it was clear she was dismissed for gross misconduct of fighting as provided under section 44. The trial court therefore erred in finding the Respondent was unfairly terminated on substantive grounds.
Whether the dismissal procedure complied with section 41 of the Employment Act
The court agreed with the trial court that due procedure was not followed; the Respondent ought to have been heard on the allegations despite the show cause letter being issued
The court held that even where gross misconduct warrants dismissal, section 41 sets up a mandatory and elaborate process requiring notification and hearing before termination. Issuing a show cause letter and receiving a response was not enough; the Respondent ought to have been heard on the allegations of fighting. The dismissal was therefore procedurally unfair under section 45.
Whether the trial court erred in awarding maximum 12 months' compensation
The award of 12 months' compensation was too high; it was substituted with one month's salary (Kshs 15,000/=) as compensation
The trial court did not justify the maximum award on sound judicial principles as required by section 49(4) of the Employment Act. The Respondent was only months into a one-year contract expiring December 2019, contributed to her own misfortune by fighting, and had secured alternative employment with the assistance of the Appellant's HR, which should not be penalized. These section 49 considerations warranted a reduced award.
Legal principles established
#- Even in cases of gross misconduct warranting summary dismissal, an employee must be heard before termination under section 41 of the Employment Act
- The burden of justifying the grounds of termination lies with the employer, and unproved reasons amount to unfair termination
- An award of maximum 12 months' compensation must be justified by the court on sound judicial principles, considering section 49(4) factors
- An appellate court will not interfere with the trial court's discretion on damages unless it misdirected itself leading to a wrong decision or injustice
Court orders
#- 1.One month's salary as compensation for unfair termination of Kshs 15,000/= in substitution for the 12 months' compensation of Kshs 180,000/= awarded by the trial court
- 2.Notice pay of Kshs 15,000/= not to be awarded, the court having found justifiable grounds for summary dismissal
- 3.Each party to bear their own costs of the Appeal
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- On appeal from
- Mavoko Chief Magistrate's Court
- CMEL No. 80 of 2020
- Jurisdiction invoked
- Appellate jurisdiction over appeals from the Chief Magistrate's Employment and Labour Court (ELRC Act, Appeals Division)
Relief refused
#Setting aside of the entire judgment and entry of judgment in favour of the Appellant
Though the Appellant had a valid reason for dismissal, procedural fairness under section 41 was not followed, so the termination remained unfair
Payment in lieu of notice
The court found justifiable grounds for summary dismissal existed and the Appellant did not challenge the notice pay issue in a way that preserved the award
Costs
The appeal partially succeeds hence each party shall bear their own costs of this Appeal
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
The court therefore consider the maximum award of 12 month's salary as too high and in the circumstances taking ingo account that the appellant had justifiable reasons to dismiss the hereby substitutes the 12 months compensation with one month's salary as compensation for unfair termination
The appeal partially succeeds hence each party shall bear their own costs of this Appeal
In conclusion this court finds that the Appellant had a valid reason to dismiss the Respondent but failed on the procedural part under section 41 of the Act hence this amounted to unfair termination under section 45 of the Act
The courts have always held that even in cases of gross misconduct warranting dismissal an employee must be heard
an award of the maximum 12 months' pay must be based on sound judicial principles
Issues in the judgment
#Internal tension: the court found valid reasons for dismissal and refused notice pay, yet still awarded compensation for unfair termination based solely on procedural lapse; also the judgment's heading references a first-instance appeal structure but the substituted notice pay treatment is ambiguous
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Royal Garments Industries EPZ Limited v Wanyonyi (Appeal E202 of 2023) [2024] KEELRC 2480 (KLR)", Case Analysis (2024). Mavoko CMEL Appeal (Memorandum of Appeal dated 8th June, 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2480/eng@2024-10-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.