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ELRCPartially AllowedCause No. 52 of 2015

Chrispinus Wabwire v Spinknit Limited [2020] KEELRC 1369 (KLR)

Employment and Labour Relations Court of Kenya
20 February 2020
2,282 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, a machine attendant/machine operator employed by the respondent from 1998, was suspended on 13th September 2014 after being found away from his duty station, allegedly spreading false information about Unitas, a financial institution seeking to address the respondent's employees. After a show-cause notice, his reply, suspension and disciplinary hearings on 10th and 14th October 2014, he was summarily dismissed by letter dated 25th October 2014. He sued for unfair termination, claiming notice pay, days worked, leave pay, travelling allowance, severance pay, compensation, a certificate of service and cots. The respondent defended the dismissal as grounded on valid reason and procedural fairness, citing the claimant's history of indiscipline. The court, applying section 43 of the Employment Act and the Evans Kamadi Misango authority, found no evidence supporting the reason in the dismissal letter: the disciplinary proceedings concerned absence from the duty station, while the dismissal letter alleged creating commotion by spreading false information, a variance unsupported by material evidence. The termination was therefore unfair under sections 45(2) and 49. Compensation was assessed at only one month's gross wage (Ksh.14,763) because of the claimant's poor disciplinary record, including a prior summary dismissal in 2013 later lifted after union intervention. Notice pay of Ksh.14,763 and unchallenged leave pay of Ksh.9,309 were awarded; severance pay and travelling allowance were refused. Judgment was entered for the claimant with a declaration of unfair termination, a certificate of service, and 50% costs.

Questions the Court framed

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

  1. 1.Whether the respondent proved a valid and fair reason for the summary dismissal of the claimant
  2. 2.Whether the claimant was afforded a fair hearing/procedure before termination
  3. 3.Whether the claimant is entitled to notice pay, compensation, leave pay, travelling allowance and severance pay

Key legal issues

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01

Validity of the reason for summary dismissal

Holding

There was no evidence supporting the reason stated in the dismissal letter; there was a variance between the notice to show cause, suspension, disciplinary proceedings and the ultimate notice of summary dismissal

Reasoning

The disciplinary proceedings centred on the claimant's absence from his duty station, yet the dismissal letter alleged creating commotion by spreading false information about Unitas. No material evidence supported that allegation, and the claimant had dared the respondent to call a witness. The variance meant the employer failed to prove a valid and fair reason under sections 43 and 45 of the Employment Act.

p. 3
02

Remedies for unfair termination

Holding

The claimant was entitled to notice pay and compensation under sections 45(2) and 49 of the Employment Act; compensation assessed at one month's gross wage due to his poor disciplinary record

Reasoning

Without a valid and fair reason the termination was unfair. In assessing compensation under section 45(5), the court considered the claimant's work record, including a prior summary dismissal in March 2013 for gross misconduct later lifted after union intervention, and awarded one month's gross wage as compensation plus notice pay at the last gross wage of Ksh.14,763.

p. 3
03

Leave pay and certificate of service

Holding

Leave pay of Ksh.9,309 awarded as unchallenged since the respondent filed no work records; certificate of service due under section 51

Reasoning

The respondent did not file any work records regarding leave, so the claim was unchallenged and succeeded. A certificate of service is a statutory entitlement under section 51 of the Employment Act, 2007 and was due to the claimant.

p. 3

Legal principles established

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  • The employer bears the burden under section 43 of the Employment Act to demonstrate a valid reason for termination
  • The court does not re-enact the internal disciplinary process but examines the legality and reasonableness of the employer's action

Court orders

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  1. 1.A declaration that employment terminated unfairly
  2. 2.Compensation of Ksh.14,763 (one month's gross wage)
  3. 3.Notice pay of Ksh.14,763
  4. 4.Leave pay of Ksh.9,309
  5. 5.Certificate of service to issue under section 51 of the Employment Act, 2007
  6. 6.Dues under (b), (c) and (d) subject to the provisions of section 49(2) of the Employment Act, 2007
  7. 7.Claimant awarded 50% of his costs

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 40, 43, 45, 49, 51)

Relief refused

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Severance pay of Ksh.115,092

Severance pay arises only under section 40 of the Employment Act on redundancy, which was not the case here

p. 3

Leave travelling allowance of Ksh.2,623

The leave was encashed rather than taken, so no travel arose

p. 3

Days worked and not paid (Ksh.10,155), 4 months' notice pay of Ksh.50,776, cots and full compensation as sought

Not awarded as pleaded; notice pay assessed at one month's gross wage and compensation reduced to one month due to poor work record

Costs

The claimant is entitled to 50% of his costs.

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.

In this case, the court finds no evidence with regard to the reasons for which employment terminated. There is a variance on the notice to show cause, suspension and disciplinary proceedings with the ultimate notice of summary dismissal.
p. 3Failure to prove valid reason for termination
Without a valid and fair reason leading to termination of employment, the claimant was unfairly treated and under section 45(2) and 49 of the Employment Act, 2007 he I entitled to compensation and notice pay.
p. 3Remedies for unfair termination
Accordingly, judgement is hereby entered for the claimant against the respondent in the following terms; a. A declaration employment terminated unfairly;
p. 4Final orders - declaration of unfair termination
g. The claimant is entitled to 50% of his costs.
p. 4Final orders - costs

Issues in the judgment

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minor

Date of employment stated inconsistently in the judgment

minor

Date of prior dismissal stated inconsistently (2013 vs 2014) within the judgment

minor

Date of the dismissal letter appears as both 14th October and 25th October, 2014

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, "Chrispinus Wabwire v Spinknit Limited [2020] KEELRC 1369 (KLR)", Case Analysis (2020). Cause No. 52 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1369/eng@2020-02-20

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