[2016] KEELRC 1281 (KLR)
The court found that while the Respondent followed the procedural requirements for termination by summoning the Claimant and holding a hearing, it failed to provide sufficient evidence to substantiate the reasons for dismissal. The Respondent did not discharge its statutory burden under sections 43 and 45 of the...
Source-derived case information.
- Citation
- [2016] KEELRC 1281 (KLR)
- Parties
- Claimant: Joseph Onganga Mtulah; Respondent: Ol Kalou Dairy Ltd
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nakuru
- Jurisdiction
- Kenya
- Case Number
- Cause 70 of 2013
- Procedural Posture
- Employment Cause / Judgment
- Outcome
- Claim partly allowed; termination declared substantively unfair; compensation awarded.
- Judges
- MSA Makhandia
- Legal Topics
- Unfair Termination, Procedural Fairness, Substantive Fairness, Compensation for Termination
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Joseph Onganga Mtulah
Claimant
Ol Kalou Dairy Ltd
Respondent
Procedural Posture
Employment Cause / Judgment
Legal Issues
- 1 Whether the termination of the Claimant's employment was procedurally and substantively fair.
- 2 Whether the Claimant is entitled to compensation or other remedies for unfair termination.
Ratio Decidendi
The court found that while the Respondent followed the procedural requirements for termination by summoning the Claimant and holding a hearing, it failed to provide sufficient evidence to substantiate the reasons for dismissal. The Respondent did not discharge its statutory burden under sections 43 and 45 of the Employment Act, 2007, to prove valid and fair grounds for termination. As a result, the termination was held to be substantively unfair. The Claimant was awarded compensation equivalent to six months' gross wages, but claims for unpaid wages and pay in lieu of notice were denied as evidence showed these amounts had already been paid. The Claimant was also denied costs for failing...
Court Disposition
Claim partly allowed; termination declared substantively unfair; compensation awarded.
Orders
- Respondent to pay the Claimant compensation of Kshs 241,800/-.
- Claimant denied costs for failure to file submissions through advocates on record.
Full Case Text
Judgment text and source record
47 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAKURU
CAUSE NO. 70 OF 2013
JOSEPH ONGANGA MTULAH CLAIMANT
v
OL KALOU DAIRY LTD RESPONDENT
JUDGMENT
For determination are the questions, whether the termination of the Claimant’s employment on 17 February 2012 was fair and if so, appropriate remedies.
The firm of B. W. Mathenge & Co. Advocates purported to file written submissions on behalf of the Claimant on 18 January 2016. The said firm is not on record and the Court suo moto expunges the said submissions from the record.
The Respondent’s submissions were filed on 18 February 2016.
The Court has considered the pleadings, testimonies and Respondent’s submissions.
Procedural fairness
The Respondent, through a letter dated 3 February 2012 summoned the Claimant to appear before its Board to answer to certain allegations which were set out in the letter.
The Claimant admitted that he received the summons to appear before the Board and that he appeared before the Board on 17 February 2012, but stated that he was not allowed to make representations.
The Respondent produced an extract of the minutes of a meeting held on 17 February 2012 and they indicate the Claimant was questioned.
A disciplinary hearing ought not to be a mini-court with the technical formalities of the courtroom and the Court is satisfied that the procedures adopted by the Respondent substantially met the basic statutory requirements as envisaged by section 41 of the Employment Act, 2007.
Substantive fairness
Sections 43, 45 and 47 of the Employment Act, 2007 have placed an onerous burden upon employers in disputes concerning the fairness of termination of an employee.
The Claimant was summoned to answer to allegations of abuse of office of manager, occasioning massive losses; failure to disclose information to the Board; failure to effectively manage Respondent’s human resource and moving away company properties without authority.
The Respondent’s first witness stated that investigations had established massive irregularities in that Claimant had hired ghost farmers and contractors but he did not disclose any details of these ghost farmers and contractors.
Apart from making brief reference to the massive irregularities, the witness did not even give particulars of any amounts of monies paid to these ghost farmers or contractors. He equally did not lead any evidence at all on the other allegations.
With the material placed before Court, the Court reaches the conclusion that the Respondent failed to discharge the burden placed on it by sections 43 and 45 of the Employment Act, 2007, on a balance of probabilities.
The termination of the Claimant’s employment was thus substantively unfair.
Appropriate remedies
The Claimant filed a schedule of the heads of claim/dues he was seeking on 12 January 2015.
The Claimant testified that his letter of termination was accompanied by a cheque for Kshs 137,350/40.
Pay in lieu of notice
The Respondent’s witness testimony that the dues paid to the Claimant included 3 months pay in lieu of notice was not challenged/controverted and therefore nothing turns on this head of relief.
Compensation
The Claimant served the Respondent for about 6 years and considering the length of service, the Court is of the view that the equivalent of 6 months gross wages would be fair.
Unpaid wages
The Claimant sought Kshs 40,000/- on account of unpaid salaries during the period he was on extended leave.
The Claimant went on leave in December 2011, and his employment was terminated on 17 February 2012.
The Respondent produced the pay slips for December 2011 and January 2012 and its witness’ testimony that the same were paid through the Claimant’s bank account was not challenged. Claimant also accepted receiving a cheque.
The pay slips indicate the pay point as Equity Bank Ltd and the Court finds on a balance of probabilities that the salaries were paid.
Conclusion and Orders
The Court finds and holds that though the termination of the Claimant’s employment was procedurally fair, the Respondent failed to prove the reasons as valid and fair and therefore the termination was substantively unfair.
The Court awards and orders the Respondent to pay the Claimant
Compensation Kshs 241,800/-
Claimant is denied costs for having failed to file submissions through the Advocates on record.
Delivered, dated and signed in Nakuru on this 3rd day of May 2016.
Radido Stephen
Judge
Appearances
For Claimant Mr. Simiyu instructed by Simiyu & Co. Advocates
For Respondent Mr. Mbugua instructed by Ndegwa Wahome & Co. Advocates
Court Assistant Nixon/ Mwangi S.