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ELRCPartially AllowedMemorandum of Claim dated 25th March, 2014· [2019] KEELRC 1117 (KLR)

Abdulkarim Ali Mohamed v Coast Mail Company [2019] KEELRC 1117 (KLR)

Employment and Labour Relations Court
12 July 2019
1,285 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer must prove both the reason for firing and that the employee got a fair hearing, or the dismissal is unlawful.

What this practically means

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Executive summary

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The Claimant, engaged as a booking clerk on 28th August 2008 at a salary of Kshs.12,767, sued for damages for unlawful termination. He was suspended for one month without pay from 11th July 2012 following a customer complaint, was never recalled, and learnt of his termination only when his advocates wrote to the Respondent, which replied on 4th September 2013 that it considered him a deserter. He sought withheld salary and severance pay, compensation of up to 12 months' wages, and refund or proof of NHIF and NSSF contributions. The Respondent denied terminating him, asserting desertion and summary dismissal under section 44(4)(a) of the Employment Act after efforts to comply with section 41 failed. The court framed two issues: whether the termination was unfair and unlawful, and entitlement to remedies. It held the only evidence of recall was a letter dated 20th May 2013 bearing no mailing address and no proof of receipt, so the Respondent failed to prove the reason for termination under section 43; applying Mary Chemweno Kiptui v Kenya Pipeline Company Limited, the mandatory hearing requirements of section 41 were flouted. The court awarded salary withheld from 11th July 2012 to 2nd April 2013 (Kshs.111,466), guided by Grace Gacheru Muriithi v Kenya Literature Bureau, and compensation of 8 months' salary (Kshs.102,136), totaling Kshs.213,602. Severance pay was refused as there was no redundancy; the NHIF claim failed as unpleaded special damage, and the NSSF statement showed deductions were remitted. The Respondent was ordered to pay costs and interest at court rates. Judgment delivered at Nairobi on 12th July 2019 by Maureen Onyango, Judge.

Key legal issues

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01

Whether there was a valid reason for termination

Holding

The Claimant was unlawfully terminated; the employer failed to prove desertion as the only recall letter had no mailing address and no proof of receipt

Reasoning

It was common ground the Claimant was suspended after a customer complaint. The Respondent asserted desertion relying on a recall letter dated 20th May 2013, but that letter contained no mailing address and no evidence showed the Claimant received it. The Claimant was on indefinite suspension and learnt of the termination only when his advocates wrote and the Respondent replied on 4th September 2013 calling him a deserter. Without proof of a reason, termination was unfair.

p. 2
02

Whether procedural fairness under section 41 was complied with

Holding

No hearing was accorded; the mandatory procedural requirements were flouted, rendering the termination unfair

Reasoning

The Claimant submitted that no hearing was conducted and no reason was advanced contrary to sections 41 and 43. The court adopted the reasoning in Mary Chemweno Kiptui v Kenya Pipeline Company Limited that section 41 is couched in mandatory terms and that termination after a flawed process without a hearing is ultimately unfair.

p. 2
03

Entitlement to salary withheld during suspension

Holding

Claimant entitled to withheld salaries from 11th July 2012 to 2nd April 2013 as the suspension turned indefinite and he was not exculpated through any process

Reasoning

The suspension letter indicated one month without pay but became an indefinite suspension. Guided by Grace Gacheru Muriithi v Kenya Literature Bureau, an employee exculpated at the end of a disciplinary process has a legitimate expectation to be paid for the suspension period. As no disciplinary process concluded and the termination was concealed, the Claimant was awarded the withheld salary up to 2nd April 2013 when the Respondent said he reported back.

p. 2
04

Compensation for unlawful termination

Holding

Eight months' salary awarded as compensation, taking into account length of service and circumstances of termination

Reasoning

Having found the termination unlawful, the court exercised discretion under the remedies framework to award compensation equivalent to 8 months' salary, considering the Claimant's length of service from 28th August 2008 and the circumstances under which the employment ended, namely termination without his knowledge while on suspension.

p. 3

Legal principles established

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  • The employer bears the burden of proving the reason for termination, failing which the termination is deemed unfair under section 45
  • Section 41 procedural requirements are mandatory; termination without a hearing is unfair

Court orders

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  1. 1.Respondent to pay the Claimant salary for the period 11th July 2012 to 2nd April 2013 of Kshs.111,466
  2. 2.Respondent to pay compensation of 8 months' salary of Kshs.102,136
  3. 3.Total decretal sum of Kshs.213,602
  4. 4.Respondent to pay the Claimant's costs
  5. 5.The decretal sum shall attract interest at court rates
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (sections 35, 41, 43, 44, 45)

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, "Abdulkarim Ali Mohamed v Coast Mail Company [2019] KEELRC 1117 (KLR)", Case Analysis (2019). Memorandum of Claim dated 25th March, 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1117/eng@2019-07-12

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