Anne Wairimu Nduta v Ukristo Na Ufanisi Was Anglicana Sacco Ltd [2021] KEELRC 2351 (KLR)
The bottom line
#A Kenyan Sacco's dismissal of an employee for not submitting academic certificates was ruled unfair because she never got a hearing before termination.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness in termination
Termination was unfair because the claimant was not given a hearing or opportunity to be heard before termination
Section 41(1) and (2) of the Employment Act require the employer, before terminating or summarily dismissing an employee on grounds of misconduct, to explain the reasons and hear and consider the employee's representations. The claimant was only issued demand letters and a show-cause letter; no hearing at the shop floor took place. Nothing exceptional was shown to make a hearing impossible. Termination was therefore contrary to section 41 and unfair under section 45, calling for compensation under section 49.
Failure to submit certificates as gross misconduct under section 44
Failure to produce academic certificates was not a matter constituting gross misconduct under section 44 unless incorporated into work regulations or the contract
The court held that where an employer's business gives rise to other matters comprising gross misconduct beyond those enumerated in section 44, the employer must incorporate such matters into work regulation policies and bring them to the employee's attention through memos, agreements, notices, circulars, work regulations or the employment contract. No such material existed here, and no work records showed the claimant had been directed to submit certificates and failed. The regulator explanation was unsupported by evidence.
Entitlement to service pay
Service pay is not due where the employee is registered with NSSF and NHIF
Section 34(5) and (6) of the Employment Act provide that service pay is only due where statutory deductions and contributions are not complied with. The claimant's payment statement showed she was registered with NSSF and NHIF, so the claim for service pay from 2011 to 2019 failed.
Legal principles established
#- The fair procedure requirements of section 41 of the Employment Act are mandatory even where the employer relies on summary dismissal under section 44
- Conduct not enacted in work regulations, contracts or policies cannot found gross misconduct justifying dismissal
Court orders
#- 1.Compensation awarded at 8 months' gross salary, ksh.627,688
- 2.Leave allowance awarded at ksh.19,615
- 3.Costs of the suit awarded to the claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 41, 44, 45, 49 and 34)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Anne Wairimu Nduta v Ukristo Na Ufanisi Was Anglicana Sacco Ltd [2021] KEELRC 2351 (KLR)", Case Analysis (2021). Cause No. 749 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/2351/eng@2021-02-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.