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ELRCPartially AllowedCause No. 964 of 2013· [2014] KEELRC 1499 (KLR)

Grace Wairimu Njoroge v Niti Computers [2014] KEELRC 1499 (KLR)

Industrial Court of Kenya
19 December 2014
1,100 words in judgment
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The bottom line

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What this practically means

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Executive summary

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The claimant, Grace Wairimu Njoroge, sued Niti Computers for unlawful and wrongful termination of employment. She was employed in February 2010 as a Sales Representative at a salary she pleaded as Kshs.24,575 per month. In October 2012 she went on maternity leave with the respondent's knowledge. On resuming work she was told there was no vacancy, was asked to remain at home, and after about four months was informed there was no more work for her; her contract was thus terminated without notice, written reasons or a hearing. The respondent entered appearance but filed no defence and did not attend the hearing, which proceeded after consent-taken dates. The court held that an undefended suit must still be analysed on its own merits. It found the termination procedurally and substantively unfair, particularly as the claimant lost her job on return from maternity leave without just reason. The court awarded six months' pay as compensation (Kshs.147,450.00), salary for the maternity leave period October to December 2012 (Kshs.73,750.00 as ordered), and service pay at 15 days per completed year (Kshs.12,285.50), having found evidence of non-remittance of statutory dues. Severance pay was declined because the case was not a redundancy, and the NSSF, NHIF and PAYE deductions could not be paid to the claimant as they were owed to the statutory bodies. Each party was ordered to bear its own costs. The claim therefore partially succeeded.

Key legal issues

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01

Whether the termination was unfair

Holding

The termination was unfair; the claimant lost her job while on maternity leave without justification, notice or a hearing

Reasoning

The claimant went on maternity leave with the respondent's knowledge and on resumption found her job gone. There was no notice, no written reasons and no hearing, nor any allegation of misconduct or poor performance. The court held this was both procedurally and substantively unfair and awarded the equivalent of six months' pay as compensation at her monthly salary of Kshs.24,575.00.

p. 2
02

Entitlement to salary for the maternity leave period

Holding

The claimant was awarded salary from October to December 2012 (Kshs.24,575.00 x 3 = Kshs.73,725.00, entered as Kshs.73,750.00)

Reasoning

The court found the claimant entitled to her pay while on maternity leave until the date she was due to resume work, computed as three months' salary. The final order recorded this as unpaid salary at Kshs.73,750.00, a slight discrepancy from the computed Kshs.73,725.00.

p. 2
03

Severance pay and unremitted statutory deductions

Holding

Severance pay declined as this was not a redundancy; unremitted NSSF, NHIF and PAYE cannot be paid to the claimant, but service pay at 15 days per completed year was awarded (Kshs.12,285.50)

Reasoning

Severance pay is a redundancy entitlement and the facts disclosed no redundancy. Claims for unremitted statutory dues belong to NSSF, NHIF and KRA and cannot be awarded to the employee. However, evidence of non-remittance entitled the claimant to service pay at 15 days for each year worked; with one completed year from 10th February 2010 to termination in December 2012, she was awarded Kshs.12,285.50.

p. 2

Legal principles established

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  • Termination without notice, without written reasons and without a hearing is procedurally and substantively unfair
  • Termination of an employee who is on or returning from maternity leave, without just reason or notice, is unfair
  • Even an undefended suit must be analysed on its own merits
  • Where an employer has not remitted statutory deductions, service pay at 15 days' pay for each year worked is due

Court orders

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  1. 1.Declaration that the termination was unfair
  2. 2.Compensation of Kshs.147,450.00 (6 months' pay at Kshs.24,575.00)
  3. 3.Unpaid salary for October to December 2012 at Kshs.73,750.00
  4. 4.Service pay at Kshs.12,285.50
  5. 5.Each party to bear their own costs
Jurisdiction invoked
Original jurisdiction of the Industrial Court over disputes relating to employment and unfair termination

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, "Grace Wairimu Njoroge v Niti Computers [2014] KEELRC 1499 (KLR)", Case Analysis (2014). Cause No. 964 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1499/eng@2014-12-19

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