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ELRCPartially AllowedCause No. 749 of 2019· [2021] KEELRC 2351 (KLR)

Anne Wairimu Nduta v Ukristo Na Ufanisi Was Anglicana Sacco Ltd [2021] KEELRC 2351 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
11 February 2021
2,162 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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

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Executive summary

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The claimant, employed as a credit officer in 2010/2011 and promoted to Assistant Credit Manager in 2014, was dismissed by the respondent Sacco on 1st August 2019 for failure to submit academic certificates (a Diploma in Marketing Management) demanded by letters dated 19th June and 4th July 2019. She sued for 12 months' pay as damages for unlawful termination, leave allowance at 25% of basic pay, and service pay. The respondent defended the dismissal as summary dismissal for grave misconduct, namely failure to obey a lawful order said to arise from a regulatory requirement to submit staff credentials. The court held that section 41 of the Employment Act mandatorily requires an employer to explain reasons and hear the employee before termination or summary dismissal, even for gross misconduct under section 44. Failure to produce certificates was not a matter constituting gross misconduct unless incorporated in work regulations, policies or the contract, and no such material existed; the regulatory justification was unsupported by evidence. Termination was therefore unfair under sections 41 and 45. Compensation was awarded at 8 months' gross salary (ksh.627,688) reflecting 8 years of service, and leave allowance of ksh.19,615 was awarded as uncontroverted. Service pay was refused because the claimant was registered with NSSF and NHIF under section 34(5) and (6). The claimant received costs of the suit.

Key legal issues

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01

Procedural fairness in termination

Holding

Termination was unfair because the claimant was not given a hearing or opportunity to be heard before termination

Reasoning

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.

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02

Failure to submit certificates as gross misconduct under section 44

Holding

Failure to produce academic certificates was not a matter constituting gross misconduct under section 44 unless incorporated into work regulations or the contract

Reasoning

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.

p. 3
03

Entitlement to service pay

Holding

Service pay is not due where the employee is registered with NSSF and NHIF

Reasoning

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.

p. 3

Legal principles established

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  • 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

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  1. 1.Compensation awarded at 8 months' gross salary, ksh.627,688
  2. 2.Leave allowance awarded at ksh.19,615
  3. 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

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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 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.