[2016] KEELRC 675 (KLR)
The court held that even where an employment contract contains a termination clause, the employer cannot invoke it without assigning a reason. Section 45 of the Employment Act mandates that a valid reason must be provided for termination, relating to the employee's conduct, capacity, or operational requirements. The...
Source-derived case information.
- Citation
- [2016] KEELRC 675 (KLR)
- Parties
- Claimant: Lydia Wacuka Kariuki; Respondent: Unga Farm Care (E.A) Ltd
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1850 of 2014
- Procedural Posture
- Employment Cause / Judgment
- Outcome
- Claim allowed. Judgment for the claimant.
- Judges
- NJ Abuodha
- Legal Topics
- Unfair Termination, Termination Clauses, Employment Contracts, Statutory Requirements
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Lydia Wacuka Kariuki
Claimant
Unga Farm Care (E.A) Ltd
Respondent
Procedural Posture
Employment Cause / Judgment
Legal Issues
- 1 Whether the respondent was required to provide reasons for terminating the claimant's employment under the Employment Act.
- 2 Whether the termination of the claimant's employment was unfair for lack of reasons.
Ratio Decidendi
The court held that even where an employment contract contains a termination clause, the employer cannot invoke it without assigning a reason. Section 45 of the Employment Act mandates that a valid reason must be provided for termination, relating to the employee's conduct, capacity, or operational requirements. The respondent's failure to provide any reason for terminating the claimant's employment rendered the termination unfair. Consequently, the claimant was entitled to compensation for unfair termination.
Court Disposition
Claim allowed. Judgment for the claimant.
Orders
- The claimant is awarded six months salary as compensation for unfair termination.
- The claimant is awarded costs of the suit.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT NAIROBI
CAUSE NUMBER 1850 OF 2014
LYDIA WACUKA KARIUKI…………….…………………………CLAIMANT
VERSUS
UNGA FARM CARE (E.A) LTD…………….…………………RESPONDENT
JUDGMENT
1. The claimant herein averred that she was employed by the respondent on 20th March, 2000 and worked until 15th October, 2012 when the respondent issued her with a notice of termination of employment to take effect on 15th January, 2013. She complained that the respondent did not assign any reason for terminating her services. She further averred that the respondent had never accused her of underperformance, poor service delivery or gross misconduct or any offence whatsoever.
2. The respondent on the other had contended that the termination of claimants’ services was lawful fair and in accordance with the appointment letter. The respondent further averred that claimant was paid all her terminal dues upon termination of her services.
3. The issue in this suit is quite straight forward which is whether the respondent when invoking the termination clause in the employment contract was bound to give reasons for doing so. Section 45 of the Employment Act deals with unfair termination. It requires that a reason be given and that the reason must be valid and related to employees conduct, capacity or based on the operational requirements of the employer. What this implies is that whereas a contract of employment provides for a termination clause, the same cannot be simply invoked without assigning any reason. If this happens, the termination will be deemed unfair.
4. In the circumstances the Court finds that the claimants claim is merited and hereby awards her six months salary as compensation for unfair termination of services. The claimant shall further have costs of the suit.
5. It is so ordered.
Dated at Nairobi this 2nd day of September 2016
Abuodha Jorum Nelson
Judge
Delivered this 2nd day of September 2016
In the presence of:-
…………………………………………………………for the Claimant and
………………………………………………………………for the Respondent.
Abuodha Jorum Nelson
Judge