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Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No. 2050 of 2012

Anne Wino Misumi Gumbi v Youth Enterprise Development Fund Board [2018] KEELRC 38 (KLR)

Industrial Court of Kenya at Nairobi
20 December 2018
2,656 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded an employee over Kshs.1 million because her employer fired her without giving her a fair disciplinary hearing first.

What this practically means

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Executive summary

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The claimant, employed by the respondent from October/November 2009 as a Marketing and Linkage Scheme officer in Kisumu and later transferred to serve as Regional Coordinator for the Nyanza region, was summarily dismissed by letter dated 27th March 2012 pursuant to the respondent's Human Resources Policies and Procedure Manual. The respondent alleged desertion of duty, misuse of resources, insubordination, misrepresentation and gross misconduct, and surcharged her to refund three months' salary, an imprest of Kshs.50,000 and a further Kshs.698,400 following an internal audit. The claimant sought reinstatement or, alternatively, Kshs.488,796, general and exemplary damages, costs and interest. The court framed three issues: whether the termination was wrongful, unfair and unlawful; entitlement to relief; and costs. Relying on section 41 of the Employment Act, 2007 and the respondent's own Human Resource Manual, the court found the respondent had totally failed to adduce evidence of a disciplinary hearing. It held the termination unlawful, observing that the law mandates fairness regardless of the apparent gravity of an employee's conduct. Having won, the claimant was awarded one month's salary in lieu of notice (Kshs.141,527), leave allowance for 11 days (Kshs.52,584), and six months' salary as compensation for unlawful termination (Kshs.849,162), totalling Kshs.1,043,273, with costs borne by the respondent. Judgment was delivered on 20th December 2018.

Questions the Court framed

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

  1. 1.Whether termination of the employment of claimant wrongful, unfair and unlawful?
  2. 2.Whether the claimant entitled to the relief sought?
  3. 3.Who bears the costs of the claim?

Key legal issues

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01

Whether termination was wrongful, unfair and unlawful

Holding

The termination was unlawful because the respondent failed to afford the claimant a disciplinary hearing as required by section 41 of the Employment Act, 2007 and its own Human Resource Manual

Reasoning

The court found that the respondent adduced no evidence of having walked the claimant through a disciplinary hearing. Sections 41, 42, 43, 44 and 45 of the Employment Act, 2007 define lawful and unlawful termination, and a critical ingredient is appropriate disciplinary proceedings guaranteeing a fair hearing. The respondent failed to observe both the statute and its own Human Resource Manual, which mandates show cause letters and hearing steps, so its case failed irrespective of the misconduct alleged.

p. 4
02

Whether the claimant is entitled to the relief sought

Holding

Having won on unlawful termination, the claimant became entitled to relief: one month's salary in lieu of notice, leave allowance for 11 days, and six months' salary as compensation for unlawful termination

Reasoning

The court held that success on the unlawful termination claim entitled the claimant to relief. It awarded one month's salary in lieu of notice instead of the three months claimed, the claimed leave allowance for 11 untaken leave days, and six months' salary as compensation for unlawful termination, totalling Kshs.1,043,273.00, with costs to the respondent.

p. 4

Legal principles established

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  • A fair hearing in a disciplinary process is a necessary ingredient in any summary dismissal or termination of employment
  • The law mandates fairness in the process of termination regardless of the gravity of the employee's alleged misconduct

Court orders

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  1. 1.One (1) month's salary in lieu of notice of Kshs.141,527.00
  2. 2.Leave allowance for 11 days untaken leave of Kshs.52,584.00
  3. 3.Six (6) months' salary as compensation for unlawful termination of employment, Kshs.849,162.00
  4. 4.Total award of Kshs.1,043,273.00
  5. 5.The costs of the claim shall be borne by the respondent

The bench

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

Wrote the judgment

MO
Maureen OnyangoPRINCIPAL JUDGE
majority
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court of Kenya over a claim for unlawful termination of employment

Relief refused

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Reinstatement to employment without loss of benefits

The court instead awarded compensation in lieu, granting only one month's salary in lieu of notice rather than the three months claimed

p. 4

Three months' salary in lieu of notice

The court awarded only one month's salary in lieu of notice

p. 5

General and exemplary damages for unlawful termination

Not awarded; the court instead granted six months' salary as compensation under the Employment Act framework

p. 5

Costs

The costs of the claim shall be borne by the respondent.

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.

I therefore find a case of unlawful termination of the employment of the claimant by the respondent and hold as such.
p. 4unlawful termination
However helpless an employee’s case or conduct may appear, the law mandates fairness in the process of termination or dismissal.
p. 4procedural fairness
The respondent’s case is a display of gaping holes in the observation of the law and process as set out.
p. 4employer's breach of fair process
The costs of the claim shall be borne by the respondent.
p. 5costs
Total of claim………………………………………………….Kshs.1,043,273.00
p. 5final award

Issues in the judgment

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minor

The signature/delivery clause is internally inconsistent and incomplete, stating 'Dated and signed this day of 2018' but then 'Delivered and signed this 20th day of December, 2018' before Maureen Onyango, Principal Judge

minor

The coram lists D. K. N. Marete but the signature block reads 'D.K. Njagi Marete JUDGE', a slight variance in the judge's name

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, "Anne Wino Misumi Gumbi v Youth Enterprise Development Fund Board [2018] KEELRC 38 (KLR)", Case Analysis (2018). Cause No. 2050 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/38/eng@2018-12-20

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