Lex Oilfield Solutions Limited v Nganga (Appeal E018 of 2025) [2025] KEELRC 3736 (KLR)
The bottom line
#A Machakos court dismissed an employer's appeal, confirming that failing to follow a fair disciplinary process makes a termination unlawful.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination of the respondent was substantively and procedurally unfair
Yes - the appellant failed to prove a valid reason and failed to accord the respondent procedural fairness under section 41; the trial court's finding was upheld
The minutes of the alleged disciplinary meeting were unsigned, titled a General Meeting, and the respondent was not given advance notice that his conduct would be discussed nor the right to bring witnesses. The meal receipt supporting the meeting date was overwritten and deemed inauthentic. The alleged audit report supporting the theft allegation was never produced. Under section 43 the burden of justifying termination lay on the employer, which the appellant failed to discharge.
Whether the award of six months' salary as compensation was excessive
No - taking into account section 49(4) factors, including length of service (May 2018 to February 2023), the award was not inordinately high
The trial court considered length of service and found no valid reason for termination. There was no evidence the respondent contributed to the termination. Applying the Butt v Khan principle, an appellate court will not disturb a damages award unless it is inordinately high or low or rests on wrong principles. The award of six months' salary did not meet that threshold.
Whether the award of unpaid leave (Kshs 90,641) was justified
Yes - the respondent had 36 outstanding leave days plus entitlement for 2021-2022 which the appellant failed to disprove by producing leave records for those years
The appellant produced leave forms and email correspondence covering 2018-2020 showing 36 outstanding days, and the respondent did not dispute the email correspondence. The appellant produced no leave records for 2021 and 2022, leading to an adverse inference that the respondent did not proceed on leave in those years. With 42 days' entitlement for 2021-2022 plus the previous 36 days, the award stood.
Whether notice pay of Kshs 45,000 was properly awarded
Yes - notice pay is due under section 36 of the Employment Act and the award was upheld
Since the court upheld the finding that the termination was unfair and not a justified summary dismissal for gross misconduct, the employee was entitled to notice pay under section 36. The trial court's award on this head was therefore confirmed without variation.
Legal principles established
#- An employer must prove both valid reason (substantive fairness) and fair procedure (procedural fairness) for a termination to be fair under sections 41, 43 and 45 of the Employment Act
- A first appellate court must revisit the evidence, evaluate it and reach its own conclusion
- An appellate court will not disturb an award of damages unless it is inordinately high or low or made on wrong principles
Court orders
#- 1.Appeal dismissed for lack of merit
- 2.Judgment and Decree of Hon. E.K Suter (PM) delivered on 13th March 2025 in Mavoko CMELRC No. E178 OF 2023 upheld
- 3.Costs of the appeal to be paid to the respondent by the appellant
- 4.30 days stay granted
- On appeal from
- Magistrates' Court (Mavoko), ELRC
- Mavoko CMELRC No. E178 OF 2023
- Jurisdiction invoked
- First appellate jurisdiction over the subordinate court (Employment and Labour Relations Court Act; appeal from Magistrates' Court ELRC jurisdiction)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Lex Oilfield Solutions Limited v Nganga (Appeal E018 of 2025) [2025] KEELRC 3736 (KLR)", Case Analysis (2025). Mavoko CMELRC No. E178 of 2023 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3736/eng@2025-12-17
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.