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ELRCPartially AllowedMemorandum of Claim dated May 23, 2018· [2025] KEELRC 275 (KLR)

Omuko v Unilever Kenya Limited (Cause 781 of 2018) [2025] KEELRC 275 (KLR)

Employment and Labour Relations Court
6 February 2025
3,316 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Unilever Kenya must pay a former employee 12 months' salary because it couldn't prove a valid reason or follow fair dismissal procedures.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 9th March 1989 and rising to the position of Clerk IV, applied for Voluntary Early Retirement in February 2017 while the Respondent was downsizing. Before his VER application was determined, he was issued with a show cause letter on 7th March 2017 alleging creation of fictitious weighbridge tickets and failure to maintain integrity in handling heavy fuel oil, in connection with losses of approximately Kshs. 120,000,000 established through a PriceWaterhouseCoopers investigation. Following a disciplinary hearing on 16th March 2017, he was summarily dismissed by letter dated 5th April 2017, and his appeal was disallowed. He claimed VER dues of Kshs. 10,034,947.16, general damages and costs, contending the disciplinary process was a decoy to avoid VER payments. The Respondent justified the dismissal as grounded on proven fraud. The Court framed two issues: whether the dismissal was lawful and fair, and whether remedies were due. Applying Section 43 of the Employment Act and the reasonable responses test, the Court found no specific loss or failed duty was attributed to the Claimant and that the Respondent's omnibus action against all seemingly involved employees failed the test. On procedure under Section 41, the Court condemned the withholding of the investigation report from both the Court and the Claimant, and the unreasonably rushed timelines. The dismissal was held to be substantively and procedurally unfair. The Court awarded twelve months' salary, Kshs. 1,689,393, with interest and costs to the Claimant, but disallowed the VER dues claim and general damages for want of basis.

Key legal issues

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01

Whether the Respondent established a valid reason for dismissing the Claimant

Holding

No valid reason was established; the allegations were general, no specific loss was assigned to the Claimant, and the omnibus action failed the reasonable responses test

Reasoning

The employer relied on a PriceWaterhouseCoopers investigation report which it withheld from the Court and from the Claimant. The allegations in the show cause letter were general in nature; no specific loss was attributed to the Claimant and no specific duty he failed to perform was identified. The Respondent swooped on every employee who appeared involved, and such omnibus action cannot pass the reasonable responses test codified in Section 43 of the Employment Act.

p. 7
02

Whether the dismissal followed due process under Section 41 of the Employment Act

Holding

Procedural fairness was violated by withholding the investigation report and by imposing unreasonably short timelines

Reasoning

The Claimant received the show cause notice on 8th March 2017 and was required to respond the following day; he received hearing summons on 15th March for a hearing the next day. The employer also declined to give the Claimant the investigation report on which the charges rested, yet under Section 41 and the Chitavi and Rebecca Ann Maina decisions an employee is entitled to documents needed to prepare a defence. The haste was inexcusable and the process was unfair.

p. 8
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What remedies flow from the unfair termination

Holding

Twelve months' salary in compensation awarded; VER dues and general damages disallowed

Reasoning

In exercising discretion under the Employment Act, the Court considered the Claimant's long service of nearly three decades, the finding that he did not contribute to the dismissal, the slim chances of securing alternative employment of equal stature, and the Respondent's mishandling of the case. Twelve months' gross salary was awarded. The VER claim failed for want of evidence of any VER program, and general damages lacked any basis.

p. 8

Legal principles established

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  • An employer must prove both a valid reason and due process for a dismissal; where it fails to establish a valid reason, the termination is unfair
  • Withholding from an employee the investigation report on which the charges are based, combined with unreasonable timelines, violates the procedural fairness requirements of Section 41 of the Employment Act
  • An employee cannot be deemed to have acquiesced in a defective disciplinary process

Court orders

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  1. 1.Judgment entered in favour of the Claimant in the sum of Kshs. 1,689,393 being 12 months' salary in compensation for unlawful and unfair termination of employment
  2. 2.The award is subject to statutory deductions
  3. 3.Interest at court rates from the date of judgment until payment in full
  4. 4.The Claimant to have the costs of the case

Authorities

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Legislation

  • Employment ActSection 43
  • Employment ActSection 41
  • Employment Act 2007
  • Collective Bargaining Agreement
  • East Africa Human Resources Policy ManualSection 13.6

Cases cited (4)

  • British Leyland v Swift
    (1981) IRLR 91
  • Nampak Corrugated Wadeville v Khoza
    (JA 14/98) [1998] ZALAC 24
  • Anthony Mkala Chitavi v Malindi Water & Sewerage Company Ltd
    [2013] eKLR
  • Rebecca Ann Maina & 2 others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007

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, "Omuko v Unilever Kenya Limited (Cause 781 of 2018) [2025] KEELRC 275 (KLR)", Case Analysis (2025). Memorandum of Claim dated May 23, 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/275/eng@2025-02-06

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