[2020] KEELRC 1511 (KLR)

[2020] KEELRC 1511 (KLR)

The court found that while the respondent had the prerogative to introduce and implement performance management systems as a management tool, it failed to follow the mandatory procedural requirements under the Employment Act when terminating the grievants for poor performance. Specifically, the respondent did not...

Source-derived case information.

Citation
[2020] KEELRC 1511 (KLR)
Parties
Applicant: Banking Insurance and Finance Union; Respondent: National Bank of Kenya Limited
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nairobi
Jurisdiction
Kenya
Case Number
Cause 846 of 2014
Procedural Posture
Employment Cause / Judgment
Outcome
Claim partly allowed. Termination declared unfair. Compensation awarded. Reinstatement and other reliefs denied.
Judges
DO Ogal
Legal Topics
Unfair Termination, Performance Management, Disciplinary Procedure, Collective Bargaining Agreement, Reinstatement, Compensation for Termination
Source Language
en
Employment and Labour Unfair Termination Performance Management Disciplinary Procedure Collective Bargaining Agreement Reinstatement Compensation for Termination

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Parties

Banking Insurance and Finance Union

Applicant

National Bank of Kenya Limited

Respondent

Procedural Posture

Employment Cause / Judgment

  1. 1 Whether the respondent was required to involve the claimant union in the performance management process before terminating employees.
  2. 2 Whether the termination of the grievants' employment on account of poor performance was lawful and fair.
  3. 3 Whether the claimant and grievants are entitled to the reliefs sought, including reinstatement and compensation.

Ratio Decidendi

The court found that while the respondent had the prerogative to introduce and implement performance management systems as a management tool, it failed to follow the mandatory procedural requirements under the Employment Act when terminating the grievants for poor performance. Specifically, the respondent did not issue warning or show cause letters, nor did it subject the grievants to a disciplinary hearing as required by Section 41 of the Act. The respondent also failed to justify the reasons for termination through a fair process, as required by Sections 43 and 45. The evidence showed that the performance management process was poorly implemented, with some employees being assessed in...

Court Disposition

Claim partly allowed. Termination declared unfair. Compensation awarded. Reinstatement and other reliefs denied.

Orders

  • Each grievant is awarded 12 months' salary as compensation for unfair and unlawful termination.
  • Claims for reinstatement, re-engagement, notice pay, leave pay, and other terminal dues are dismissed.