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ELRCPartially AllowedELRC Cause (Nairobi) – application dated 11th December 2024· [2025] KEELRC 1940 (KLR)

Waruhiu v Directline Assurance Company Ltd (Cause E1057 of 2024) [2025] KEELRC 1940 (KLR)

Employment and Labour Relations Court
30 June 2025
5,945 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court halted a flawed disciplinary hearing but ruled compulsory leave is lawful, telling the employer to redo the process properly.

What this practically means

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Executive summary

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The Claimant, employed as Head of Claims and Legal by the Respondent, sought interim orders restraining the Respondent from processing a disciplinary hearing scheduled for 13th December 2024 and reinstating her to her position with restored work privileges, after she was placed on compulsory leave, her laptop confiscated and her official email disabled ahead of a disciplinary process connected to a forensic audit. The Respondent opposed, contending that compulsory leave was within its prerogative under its HR Manual, that the disciplinary process remained at investigation stage, and that the work tools were needed for the audit. The court, per Manani J, reviewed the doctrine of managerial prerogative, holding that courts should exercise restraint and intervene in disciplinary processes only where the employer breaches the law, its internal policies or the contract, and then only to require the employer to rectify the breach rather than stop the process. It held that compulsory leave pending investigations is lawful even if not provided for in the Employment Act, the HR Manual or the contract, provided it is temporary, following Mutwol v Moi University and Thomson Kerongo. It rejected the constructive dismissal argument, holding that constructive dismissal arises only on resignation from an intolerable environment. However, the court found the Respondent had breached its own HR Manual by denying the Claimant a second seven-day window to respond to the show cause letter and by seeking to hear her case before its Board instead of a properly constituted Disciplinary Committee. It issued an injunction restraining the disciplinary hearing on the flawed process, but left the Respondent free to commence fresh proceedings in compliance with the law and policies. Reinstatement was refused; the request to declare the suit overtaken by events was declined; costs of the application abide the outcome of the suit.

Key legal issues

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01

Managerial prerogative versus judicial intervention in disciplinary processes

Holding

The court may intervene only in exceptional cases where the process breaches the law or internal policies, and then only to require the employer to rectify the breach

Reasoning

The court reviewed authorities establishing that disciplinary control is a management prerogative. Courts must not take over the employer's role but may compel compliance with law and internal rules. On the facts, the Respondent breached its own Manual twice: by denying a second seven-day window to respond to the show cause letter and by remitting the case to the Board instead of a properly constituted Disciplinary Committee. Intervention was therefore justified on the flawed process only.

p. 6
02

Lawfulness of compulsory leave pending investigations

Holding

Compulsory leave pending investigations is lawful even if not anchored in statute, policy or contract, provided it is temporary

Reasoning

Relying on Mutwol v Moi University and Thomson Kerongo, the court held that there is no law prohibiting an employer from sending an employee on compulsory leave as an interim measure to enable investigations. The Claimant's compulsory leave was temporary and intended to facilitate unhindered investigations, so it fell within the employer's prerogative.

p. 7
03

Breach of the Respondent's internal disciplinary procedure

Holding

The Respondent breached its HR Manual by denying the Claimant a second seven-day opportunity to respond and by seeking to hear her case before the Board instead of a Disciplinary Committee

Reasoning

Clause N of the Manual required that where an officer does not respond to a show cause letter, a final notice of seven days be issued before referral to the Disciplinary Committee. The Respondent instead issued a hearing invitation one day after the response deadline. The Manual also required a Disciplinary Committee comprising the Head of Department, Legal Counsel and Head of HR; the Board was not entitled to sit as such a committee. These breaches entitled the court to intervene.

p. 9
04

Confiscation of work tools and right of access to information

Holding

The laptop and email are the Respondent's property and cannot be demanded by the employee, but the employee is entitled to information needed for her defence, to be accessed under the Access to Information Act

Reasoning

The court held the work tools belong to the employer which has absolute discretion over them. However, an employee facing disciplinary action is entitled to all material necessary for her defence as a constitutional right, and failure by the employer to provide it in time opens the process to challenge. The court declined to intervene directly because the Claimant had not exhausted the Access to Information Act mechanism.

p. 8
05

Reinstatement while on compulsory leave

Holding

Reinstatement order refused because compulsory leave does not terminate employment

Reasoning

The Claimant remained an employee on full salary; compulsory leave only temporarily disrupts the employment relationship. Her prayer for reinstatement presupposed removal from the position, which had not occurred, so the relief was not well founded.

p. 10

Legal principles established

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  • An employer may send an employee on compulsory leave pending investigations even where the leave is not provided for in the Employment Act, the contract or internal policies, so long as it is a temporary interim measure
  • Courts should exercise restraint in interfering with disciplinary processes and may intervene only to require the employer to redress a breach, not to stop the process altogether
  • Constructive dismissal arises only where an employee resigns in reaction to an intolerable work environment
  • Prolonged or indefinite compulsory leave or suspension breaches the employee's rights to fair administrative action and fair labour practice

Court orders

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  1. 1.Order of injunction restraining the Respondent from processing the impugned disciplinary hearing on the basis of the flawed disciplinary process
  2. 2.Declaration that the Respondent is at liberty to institute fresh disciplinary proceedings in strict compliance with the law, its Human Resource Manual and the contract
  3. 3.Declined to declare the suit overtaken by events
  4. 4.Costs of the application to abide the outcome of the suit

Authorities

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Legislation

  • Employment ActNot specified (generally discussed)
  • Access to Information Act, Cap 7M Laws of KenyaMechanism for access to information

Cases cited (18)

  • Otoch v Muthaura & another (Cause E 697 of 2022)
    [2022] KEELRC 13564 (KLR)
  • Anne Wairimu Kimani v Kenya Agricultural Livestock Research Organization (KALRO)
    [2017] eKLR
  • Rebecca Ann Maina & 2 others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
  • Thomson Kerongo & 2 others v James Omariba Nyaoga & 3 others
    [2017] eKLR
  • Dock Workers Union v Kenya Ports Authority
    [2015] eKLR
  • Miguna Miguna v Permanent Secretary, Office of the Prime Minister
  • Samuel Muchiri Gikonyo v Henkel Chemicals Limited
  • Professor Gitile G. Naituli v The University Council, Multimedia University College of Kenya & Another
    Industrial Court Cause Number 1200 of 2012
  • Kenya Game Hunting and Safaris Workers Union v Lewa Wildlife Conservancy Limited
    Industrial Court Cause Number 1567 of 2011
  • Alfred Nyungu Kimungui v Bomas of Kenya
    [2013] eKLR
  • Evans Wafula Makokha v Uasin Gishu County Public Service Board
    [2015] eKLR
  • Mutwol v Moi University (Civil Appeal 118 of 2019)
    [2022] KECA 537 (KLR)
  • Emmanuel Mutisya Solomon v Agility Logistics
    Industrial Court Cause No 1448 of 2011
  • Chris Oanda v Kenya Airways
    [2018] eKLR
  • Terrry Muringo Muchiri v K-Rep Group Limited
    [2021] eKLR
  • Angela Wokabi Muoki v Tribe Hotel Limited
    [2016] eKLR
  • Margaret Wairimu Gacheru v Beta Healthcare International Limited
    [2019] eKLR
  • Bernard Mwaura Mbuthia v Nyahururu Water & Sanitation Company Limited, County Government of Laikipia (Interested Party)
    [2019] eKLR
Jurisdiction invoked
Article 162(2) jurisdiction of the ELRC (implied by the cause; the judgment does not expressly cite the enabling provision)

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, "Waruhiu v Directline Assurance Company Ltd (Cause E1057 of 2024) [2025] KEELRC 1940 (KLR)", Case Analysis (2025). ELRC Cause (Nairobi) – application dated 11th December 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1940/eng@2025-06-30

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