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ELRCPartially AllowedNot stated in judgment

Kudheiha Workers v Diocese of Meru St.Paul Primary Boarding School [2014] KEELRC 1475 (KLR)

Industrial Court of Kenya
19 December 2014
1,118 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court awarded three school workers 12 months' salary each because their employer could not 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 union, on behalf of three grievants formerly employed by the respondent school (a cook, a multipurpose and laundry worker, and a cook, employed between 1984 and 1996 and all terminated in 2009), claimed terminal dues including underpayments, house allowance, public holidays, annual leave, notice pay, service gratuity and compensation for loss of employment. The respondent denied liability, contending that the collective agreement of 14.08.2009 post-dated the grievants' departure, that the grievants were terminated for misconduct or poor performance, and that all terminal dues had been paid. A conciliator recommended upholding the terminations but payment of notice, leave, underpayments and six months' compensation per grievant. The respondent failed to attend the hearing, and the grievants testified. The court framed a single issue: whether the grievants were entitled to the remedies prayed for. It found insufficient evidence for the claims of underpayments, house allowance, public holidays, annual leave, overtime, gratuity and service pay under the collective agreement, which therefore failed. However, the court held the terminations unfair: no valid reason was established under section 43 of the Employment Act, 2007, and the respondent failed to observe the notice and hearing procedure under section 41. Each grievant was awarded 12 months' gross salary (Kshs.62,640.00), one month's notice pay (Kshs.5,220.00), and one month's pay per completed year of service. Judgment was entered for Kshs.146,160.00, Kshs.198,360.00 and Kshs.135,720.00 respectively, with fixed costs of Kshs.40,000.00 payable by 1.02.2015, failing which interest would accrue, and certificates of service to be issued.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the grievants are entitled to the remedies as prayed for

Key legal issues

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01

Whether the termination of the grievants' employment was unfair

Holding

Termination was unfair; no valid reason established and due procedure not followed

Reasoning

The respondent alleged misconduct or poor performance but adduced no evidence. Under section 43 of the Employment Act, 2007 the employer must prove the reasons for termination, and under section 41 must issue due notice and afford a hearing. Neither requirement was met, so the terminations were unfair, warranting compensation of 12 months' gross salary per grievant.

p. 2
02

Whether the grievants were entitled to service pay based on the collective agreement

Holding

Claim failed; the collective agreement was not established as applicable

Reasoning

The respondent argued the collective agreement of 14.08.2009 post-dated the grievants' termination. The claimant provided no evidence or submissions establishing the agreement's applicability to the grievants, so service pay could not be awarded on that basis.

p. 2
03

Whether service pay could be awarded on other grounds

Holding

Each grievant awarded one month's pay per completed year of service

Reasoning

Applying the principal objective in section 3 of the Industrial Court Act, 2011 of expeditious, just and proportionate determination, and noting no evidence of pension scheme or NSSF membership, the court awarded one month's pay per completed year of service as reasonable service pay.

p. 2

Legal principles established

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  • An employer must establish valid reasons for termination as envisaged in section 43 of the Employment Act, 2007, and follow the procedure of due notice and a hearing under section 41, failing which the termination is unfair.

Court orders

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  1. 1.Judgment entered for the claimant: respondent to pay 1st grievant Kshs.146,160.00; 2nd grievant Kshs.198,360.00; 3rd grievant Kshs.135,720.00; claimant's costs of Kshs.40,000.00, payable by 1.02.2015 failing interest at court rates from date of judgment until full payment
  2. 2.Respondent to deliver to each grievant a certificate of service by 1.02.2015

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Industrial Court Act, 2011 (dispute before the court following conciliation)

Relief refused

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Claims for underpayments, house allowance, public holidays, annual leave, overtime and gratuity

No evidence adduced to justify these heads of claim

p. 2

Service pay/gratuity based on the collective agreement

Claimant failed to establish the applicability of the collective agreement to the grievants, which post-dated their termination

p. 2

Reinstatement

Court instead awarded compensation for unfair termination

Costs

Claimant awarded costs of the suit fixed at Kshs. 40,000.00

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

the termination was unfair because the reason for termination was not established as envisaged in section 43 of the Employment Act, 2007
p. 2Unfair termination - burden on employer to establish valid reasons
the respondent failed to invoke the procedure of due notice and a hearing as provided for in section 41 of the Act
p. 2Unfair termination - procedural fairness under section 41
the court finds that each of the grievants is entitled to one month pay for each completed year of service as the reasonable pay for service
p. 2Service pay award
1. The respondent to pay the 1st grievant a sum of Kshs.146, 160.00; the 2nd grievant Kshs.198, 360.00; the 3rd grievant Kshs.135, 720.00; the claimant costs of Kshs. 40, 000.00; and to pay by 1.02.2015 failing interest to be payable at court rates from the date of this judgment till full payment.
p. 3Final orders - monetary awards and costs
2. The respondent to deliver to each grievant a certificate of service by 1.02.2015.
p. 3Final orders - certificate of service

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, "Kudheiha Workers v Diocese of Meru St.Paul Primary Boarding School [2014] KEELRC 1475 (KLR)", Case Analysis (2014). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1475/eng@2014-12-19

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