[2019] KECA 404 (KLR)

[2019] KECA 404 (KLR)

The Court of Appeal held that the appellant failed to follow the mandatory procedures under the Employment Act when terminating the respondent's employment. Specifically, the Bank did not conduct a follow-up appraisal in 2014 as required, nor did it provide the respondent with notice or a hearing as stipulated by...

Source-derived case information.

Citation
[2019] KECA 404 (KLR)
Parties
Appellant: National Bank of Kenya; Respondent: Samuel Nguru Mutonya
Court
Court of Appeal
Court Station
Court of Appeal at Nairobi
Jurisdiction
Kenya
Case Number
Civil Appeal 118 of 2017
Procedural Posture
Civil Appeal / Judgment on First Appeal
Outcome
Appeal partially allowed; main relief of reinstatement with benefits affirmed; alternative remedies set aside; each party to bear own costs on appeal.
Judges
RN Nambuye, GK Oenga, S ole Kantai
Legal Topics
Unfair Termination, Reinstatement, Procedural Fairness, Remedies for Wrongful Dismissal, Performance Management, Employment Contracts
Source Language
en
Employment and Labour Unfair Termination Reinstatement Procedural Fairness Remedies for Wrongful Dismissal Performance Management Employment Contracts

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Parties

National Bank of Kenya

Appellant

Samuel Nguru Mutonya

Respondent

Procedural Posture

Civil Appeal / Judgment on First Appeal

  1. 1 Whether the appellant followed the correct procedure in terminating the respondent's employment.
  2. 2 Whether the reason advanced for termination was valid and justified.
  3. 3 Whether the remedies awarded by the trial court were lawful and appropriate.

Ratio Decidendi

The Court of Appeal held that the appellant failed to follow the mandatory procedures under the Employment Act when terminating the respondent's employment. Specifically, the Bank did not conduct a follow-up appraisal in 2014 as required, nor did it provide the respondent with notice or a hearing as stipulated by section 41. The reason advanced for termination—poor performance—was not substantiated by evidence of proper evaluation or opportunity for the respondent to defend himself. The court affirmed that reinstatement was the most appropriate remedy given the circumstances, including the respondent's long service and the Bank's procedural failures. However, the trial court erred in...

Court Disposition

Appeal partially allowed; main relief of reinstatement with benefits affirmed; alternative remedies set aside; each party to bear own costs on appeal.

Orders

  • Reinstatement of the respondent to his previous position affirmed.
  • Payment of salary arrears and benefits from date of termination to date of reinstatement affirmed.