Apex Steel Limited v Mulinge (Employment and Labour Relations Appeal E063 of 2021) [2025] KEELRC 736 (KLR)
The bottom line
#A Kenyan court confirmed that an employer who fires a worker without a proper hearing or solid proof of misconduct must pay compensation, though one duplicated award was removed.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of the summary dismissal
The summary dismissal was procedurally unfair as the disciplinary hearing form did not show the Respondent was heard or his representations considered.
The court examined the disciplinary hearing form and found it was not filled as expected: the Respondent's response to the charge was not recorded, the clause on confirmation of hearing and allegations was unsigned, and the committee's resolution was not indicated. Section 41 of the Employment Act mandatorily requires notification, a hearing, and consideration of representations. Since the form did not demonstrate compliance, the court found procedural unfairness and upheld the trial court's finding on this limb.
Substantive fairness - validity of the reason for termination
The reasons advanced for the termination (aiding theft and failing to report it) were not proved.
The general manager, the alleged eyewitness, neither testified nor made a statement; the turn boys who allegedly implicated the Respondent were not called to testify. The Respondent denied involvement and explained he could not see behind the lorry while driving. The court found no proof the Respondent aided the theft, and indeed no proof that any theft of the Appellant's property occurred at all. Consequently the dismissal was unfair under section 45(2).
Awards of pay in lieu of notice and 6 months' compensation
Both awards were upheld; the 6 months' compensation was not inordinately high given section 49(4) factors.
Having found the dismissal unfair both procedurally and substantively, the Respondent was entitled to pay in lieu of notice. On compensation, the court considered that the Respondent had served over two years and, taking into account the circumstances and the factors in section 49(4) of the Employment Act, found the award of 6 months' salary not inordinately high so as to warrant interference on appeal.
Salary for the remainder of the contract period
The award of Kshs 140,000 was set aside as a duplication of compensation without legal basis.
The trial court awarded Kshs 140,000 for the remaining part of the contract but gave no justification for the award. Since the Respondent had already been compensated for unfair termination, the court found the award duplicated that compensation and lacked legal basis or justification, and therefore set it aside, varying the trial judgment only to that extent.
Legal principles established
#- The burden of proof in termination of employment rests on the employer, who must prove both valid reasons and fair procedure.
- Under section 41 of the Employment Act, procedural fairness requires notification, a hearing and consideration of the employee's representations before termination.
- Where an employer fails to prove the reason for termination, the termination is deemed unfair under section 45 of the Employment Act.
Court orders
#- 1.The award of one month's salary in lieu of notice is upheld
- 2.The award of 6 months' salary as compensation for unfair termination is upheld
- 3.The award of salary for the remainder of the contract period is set aside
- 4.Each party to bear their own costs of the appeal
- 5.Orders for costs in the lower court upheld, to be based on the sum awarded in the appeal
- On appeal from
- Magistrates' Court (Nairobi CMEL No. 1065 of 2019)
- Nairobi CMEL No. 1065 of 2019
- Jurisdiction invoked
- First appeal from the trial court in employment and labour relations matter (Employment and Labour Relations Court jurisdiction)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Apex Steel Limited v Mulinge (Employment and Labour Relations Appeal E063 of 2021) [2025] KEELRC 736 (KLR)", Case Analysis (2025). Nairobi CMEL No. 1065 of 2019 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/736/eng@2025-03-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.