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ELRCPartially AllowedNot stated in the judgment excerpt

Nyangweso v Roto Moulders Limited (Cause 437 of 2019) [2022] KEELRC 4147 (KLR)

Employment and Labour Relations Court
29 September 2022
2,919 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a manager's firing for poor performance was unfair because the employer had no appraisals, targets or proper disciplinary process.

What this practically means

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Executive summary

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The Claimant, employed on April 11, 2013 as Sales Manager and rising to Country Sales Manager, was terminated by letter dated September 12, 2018 titled 'termination with notice', on grounds of poor sales performance. He claimed the real reason was his objection to interference by the General Manager, Raymond Goes, and sought declarations, compensation for unfair termination and discrimination, terminal dues, and general damages. The Respondent maintained that the Claimant's 2018 performance was wanting, that performance discussions and a disciplinary hearing on September 11, 2018 preceded termination. The Court framed the issues as whether termination was fair in substance and procedure, and whether remedies were merited, under Sections 41, 43, 45 and 47 of the Employment Act, 2007. It held that good performance is an implied term of all employment contracts. The employer's grounds shifted from 21 broad areas of concern, to 4 on-the-spot charges, to 9 reasons in the termination letter, without a show-cause letter, specific charges, or supporting evidence, and without any structured appraisal system or performance improvement plan. The Claimant's consistent salary increments contradicted the alleged poor performance. Termination was flawed both in substance and procedure. The discrimination claim failed for lack of evidence, as did the terminal dues and general damages prayers. The Court declared the termination unfair and awarded the Claimant 5½ months' salary, Kshs 1,921,040, plus costs and interest from the date of judgment.

Questions the Court framed

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

  1. 1.Whether termination of the Claimant's employment was fair in substance (valid reason)
  2. 2.Whether termination was procedurally fair
  3. 3.Whether the Claimant was discriminated against
  4. 4.Whether the Claimant merits the remedies sought, including terminal dues/severance pay and general damages

Key legal issues

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01

Validity of the reason for termination

Holding

The Respondent did not establish valid and fair reasons for termination.

Reasoning

The employer produced shifting and inconsistent grounds: 21 broad areas of concern, then 4 on-the-spot disciplinary charges, then 9 reasons in the termination letter, none matching. There was no structured appraisal system, no show-cause letter, and no evidence supporting the charges. The Claimant's consistent salary increments, thanking him for his contribution, contradicted the alleged poor performance.

p. 6
02

Procedural fairness of termination

Holding

Procedure was flawed under Section 41 of the Employment Act.

Reasoning

There was no letter to show cause and no charges preceding the disciplinary hearing. Charges were raised on the floor of the hearing, not specifically put to the Claimant with an answer recorded on each, and no evidence supported the accusations.

p. 6
03

Discrimination claim

Holding

Claim fails for lack of evidence.

Reasoning

The Claimant was dismissed for his role as Country Sales Manager and could not compare himself with subordinates who did not share his role; no evidence of discrimination was adduced.

p. 4

Legal principles established

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  • Good performance is an implied term of every contract of employment even absent an express clause.
  • An employer must establish valid and fair reasons under Sections 43, 45 and 47 of the Employment Act and follow fair procedure under Section 41, including a show-cause letter and specific charges put to the employee.
  • An employer relying on poor performance must have a structured performance appraisal system, job description, targets and performance improvement plan against which the employee's performance is weighed.

Court orders

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  1. 1.Declaration that termination was unfair
  2. 2.The Respondent shall pay the Claimant 5½ months' salary in compensation for unfair termination at Kshs 1,921,040
  3. 3.Costs to the Claimant
  4. 4.Interest at court rates from the date of Judgment till payment is made in full

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 over employment disputes under Sections 41, 43, 45 and 47 of the Employment Act, 2007

Relief refused

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Compensation for discrimination and compensation for unfair termination pleaded at Kshs 41,911,365.04 each

Figures unclear and unsupported in law and fact; prayers rejected from the outset

p. 4

Terminal dues/severance pay at Kshs 873,201.05

No evidence or legal/contractual foundation identified

p. 4

General damages for unlawful and unfair termination at Kshs 1,746,402 (5 years' salary)

Indistinguishable from the compensation prayers and unsupported

p. 4

Costs

Costs to the Claimant

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.

Good performance is implied in all contracts of employment, as is other unwritten and presumed terms, such as duty of care; health and safety; duty to pay the salary; trust and confidence; and loyalty to the Employer.
p. 4Implied duty of good performance
The Court does not find a structured performance appraisal system, job description, performance targets and Performance Improvement Plan, put in place by the Respondent, against which the Claimant’s performance was weighed, and found wanting in the end, to justify termination.
p. 6Requirements for performance-based termination
It is declared that termination was unfair.
p. 6Final orders - declaration
The Respondent shall pay to the Claimant 5½ months’ salary in compensation for unfair termination at Kshs 1,921,040.
p. 6Final orders - compensation

Issues in the judgment

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minor

Judgment itself notes an ambiguity in the pleaded compensation figure

minor

Claimant's length of service stated inconsistently within the judgment

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, "Nyangweso v Roto Moulders Limited (Cause 437 of 2019) [2022] KEELRC 4147 (KLR)", Case Analysis (2022). Not stated in the judgment excerpt. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/4147/eng@2022-09-29

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