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ELRCPartially AllowedCause No. 2213 of 2016· [2022] KEELRC 415 (KLR)

Billy Moses Njari v Mwea Rice Growers Multi-Purpose Co-operative Society Limited [2022] KEELRC 415 (KLR)

Employment and Labour Relations Court
18 March 2022
AMAnna Ngibuini Mwaure
2,507 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled an employer's dismissal was unfair because it skipped mandatory fair-hearing steps, awarding the employee damages, notice pay, and costs.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 1999 and promoted to Acting Finance Manager in 2013, was suspended on 1st October 2013 and summarily dismissed on 1st November 2013 for gross misconduct over alleged malpractice. He sued for wrongful dismissal, seeking 12 months' compensation, notice pay, a certificate of service, costs and interest. The Respondent defended the dismissal as lawful, contending the Claimant was heard by a disciplinary committee and admitted misconduct, justifying deductions from his terminal benefits, and objected that the court lacked territorial jurisdiction since the cause arose in Kirinyaga County. The court framed two issues: whether the termination was unlawful and unprocedural, and whether the Claimant was entitled to the reliefs sought. It found the process flawed: the Claimant was suspended the same day he was invited to the disciplinary hearing, the minutes were unsigned, no witnesses' statements were availed, and the fraud allegations were unsubstantiated. Applying Section 41 of the Employment Act, held mandatory in Mary Chemweno Kiptui v Kenya Pipeline, and the dual substantive/procedural fairness test in Walter Ogal Anuro v Teachers Service Commission, the court held the termination unfair under Sections 41, 43 and 45. On jurisdiction, the court held the ELRC can hear cases anywhere in the country and the objection, not raised by application before hearing, was unmerited. Judgment was entered for the Claimant with six months' compensation (Kshs.154,755), one month's notice pay (Kshs.30,951), costs, interest, and a certificate of service within 30 days.

Key legal issues

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01

Procedural fairness of the disciplinary process

Holding

The termination was procedurally unfair as the Respondent did not comply with Section 41 of the Employment Act

Reasoning

The Claimant was suspended the same day he was invited to the disciplinary hearing, the hearing minutes were unsigned, no witnesses' statements were availed and he was not represented, showing confusion in the process and denial of an opportunity to be heard.

p. 3
02

Validity of the reason for dismissal

Holding

No valid and substantiated reason was proved for the summary dismissal

Reasoning

The allegations of fraud - amounts of Kshs.243,000, Kshs.158,730, Kshs.251,845 and Kshs.873,000 - were mere claims unsupported by evidence, so the Respondent failed to satisfy Sections 41, 43 and 45 of the Employment Act.

p. 3
03

Territorial jurisdiction

Holding

The objection to territorial jurisdiction fails; the court has jurisdiction and the Respondent should have raised it by application before hearing

Reasoning

The cause of action arose in Kirinyaga but the Respondent never made a formal application to transfer the suit; the court observed that ELRC courts sit throughout the country for access to justice, so the objection does not oust jurisdiction.

p. 3

Legal principles established

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  • Section 41 of the Employment Act is mandatory; failure to follow it renders a termination unfair
  • A valid termination requires both substantive justification and procedural fairness

Court orders

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  1. 1.Judgment entered for the Claimant
  2. 2.Six months' compensation of Kshs.154,755 awarded
  3. 3.One month's salary in lieu of notice of Kshs.30,951 awarded
  4. 4.Total award of Kshs.185,706
  5. 5.Costs awarded to the Claimant
  6. 6.Interest at court rates from date of judgment until full payment
  7. 7.Certificate of service to be issued to the Claimant within 30 days of the judgment

Authorities

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Legislation

  • Constitution of KenyaArticles 35, 47, 50, 48, 159(2)(d)
  • Employment ActSections 41, 43, 45, 49, 5(7)(c)
  • Fair Administrative Action ActSections 4(3)(a) and (g), 4(2), 6
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (6)

  • MARY CHEMWENO KIPTUI V KENYA PIPELINE COMPANY LIMITED
    [2014] EKLR
  • SAMSON OLE KISIRKOI V MAASAI MARA UNIVERSITY & 3 OTHERS
    [2018] EKLR
  • WALTER OGAL ANURO V TEACHERS SERVICE COMMISSION
    [2013] eKLR
  • PACKAGE INSURANCE BROKERS LTD V SIMON GITAU GICHURU
    [2019] EKLR
  • ALFRED MUTHOMI & 2 OTHERS V NATIONAL BANK OF KENYA LIMITED
    [2018] EKLR
  • RAYMOND CHEROKEWA MRISHA VS GUKON LIMITED
    (2014) eKLR
Jurisdiction invoked
Article 162(2) of the Constitution (Employment and Labour Relations Court); territorial jurisdiction objection rejected

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, "Billy Moses Njari v Mwea Rice Growers Multi-Purpose Co-operative Society Limited [2022] KEELRC 415 (KLR)", Case Analysis (2022). Cause No. 2213 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/415/eng@2022-03-18

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