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ELRCPartially AllowedNairobi CMEL No. 1065 of 2019 (Appeal)· [2025] KEELRC 736 (KLR)

Apex Steel Limited v Mulinge (Employment and Labour Relations Appeal E063 of 2021) [2025] KEELRC 736 (KLR)

Employment and Labour Relations Court
6 March 2025
5,115 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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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

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court from a magistrates' court judgment of 20th May 2021 in Nairobi CMEL No. 1065 of 2019, in which the Respondent (Claimant) successfully sued Apex Steel Limited for unfair summary dismissal following allegations that he allowed turn boys to steal binding wires from his lorry on 23rd July 2018. The Appellant challenged both the findings of procedural and substantive unfairness and the quantum of awards. Guided by Selle v Associated Motor Boat Co., the court re-evaluated the evidence. On procedure, it found the disciplinary hearing form incomplete - unsigned by the Respondent and lacking his recorded response - so the mandatory requirements of section 41 of the Employment Act (notification, hearing, consideration of representations) were not met; the dismissal was procedurally unfair. On substance, the general manager who allegedly witnessed the theft neither testified nor made a statement, the turn boys were not called, and there was no proof any theft of the Appellant's property occurred; the reasons for termination were not proved, rendering the dismissal unfair under section 45(2). On remedies, the court upheld the award of one month's pay in lieu of notice (Kshs 28,000) and six months' salary as compensation (Kshs 168,000), finding the latter not inordinately high under section 49(4). However, it set aside the award of Kshs 140,000 for the remainder of the contract period as an unjustified duplication of compensation. The appeal thus partially succeeded; each party was ordered to bear their own costs of the appeal, while the lower court costs order in the Respondent's favour was upheld, to be computed on the sum awarded in the appeal.

Key legal issues

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01

Procedural fairness of the summary dismissal

Holding

The summary dismissal was procedurally unfair as the disciplinary hearing form did not show the Respondent was heard or his representations considered.

Reasoning

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.

p. 8
02

Substantive fairness - validity of the reason for termination

Holding

The reasons advanced for the termination (aiding theft and failing to report it) were not proved.

Reasoning

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).

p. 10
03

Awards of pay in lieu of notice and 6 months' compensation

Holding

Both awards were upheld; the 6 months' compensation was not inordinately high given section 49(4) factors.

Reasoning

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.

p. 11
04

Salary for the remainder of the contract period

Holding

The award of Kshs 140,000 was set aside as a duplication of compensation without legal basis.

Reasoning

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.

p. 11

Legal principles established

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  • 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

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  1. 1.The award of one month's salary in lieu of notice is upheld
  2. 2.The award of 6 months' salary as compensation for unfair termination is upheld
  3. 3.The award of salary for the remainder of the contract period is set aside
  4. 4.Each party to bear their own costs of the appeal
  5. 5.Orders for costs in the lower court upheld, to be based on the sum awarded in the appeal

Authorities

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Legislation

  • Employment Act 2007section 41
  • Employment Act 2007section 43
  • Employment Act 2007section 45(1)
  • Employment Act 2007section 45(2)
  • Employment Act 2007section 47(5)
  • Employment Act 2007section 49(1)
  • Employment Act 2007section 49(4)
  • Employment Act 2007section 50
  • Constitution of Kenya 2010Article 41
  • Evidence Act
  • Civil Procedure Act/Rules

Cases cited (4)

  • Selle & Another Vs Associated Motor Boat Co. Ltd & Another
    (1968) EA 123
  • Benson Muraguri Maina v Kassam & Bros Co. Ltd
    [2016] eKLR
  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • Evans Kamadi Misango v- Barclays Bank of Kenya Ltd
    [2015] eKLR
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

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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, "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.