Kenya Union of Comercial, Food and Allied Workers v Magunas Super Stores Limited [2022] eKLR

Kenya Law

Automated Summary

Key Facts

The case involves the Kenya Union of Comercial, Food and Allied Workers (Claimant) challenging the termination of Margaret Nyambura Mwangi, a member employed by Magunas Super Stores Limited (Respondent) from 2016. Mwangi's 6-month renewable contract was terminated on 10th February 2018 without notice or reason, despite no prior warnings. The Respondent claims termination followed contractual terms (one month's notice) and denies unlawful dismissal. The court ruled the termination unlawful, citing lack of procedural fairness and sustainable reason, and awarded 12 months' compensation (Kshs.217,813.80).

Issues

  • Who bears the costs of the claim following the determination of unlawful termination
  • Whether the Claimant is entitled to the relief sought after establishing unlawful termination
  • Whether the termination of the employment of the Claimant by the Respondent was wrongful, unfair and unlawful

Holdings

  • The court found that the termination of Margaret Nyambura Mwangi's employment by Magunas Super Stores Limited was unlawful, unfair, and in bad faith, citing a lack of sustainable reason and failure to provide a hearing, in violation of Section 41 of the Employment Act 2007.
  • The court determined that the respondent must bear the costs of the claim as part of the judgment.
  • The court ruled the claimant is entitled to relief, ordering 12 months' compensation for unlawful termination (Kshs.217,813.80) and that the costs of the claim be borne by the respondent.

Remedies

  • The costs of the claim shall be borne by the Respondent.
  • Twelve (12) months' compensation for unlawful termination of employment at Kshs.18,515.15 x 12 (total Kshs.217,813.80) awarded to the claimant.

Monetary Damages

217813.80

Legal Principles

  • The termination was deemed to have occurred in bad faith, as the Respondent failed to provide a valid reason for ending the contract before its expiry and refused conciliation efforts.
  • The court emphasized the necessity of substantive and procedural fairness in employment termination under Section 41 of the Employment Act 2007, finding the Respondent's summary dismissal without notice or reason to be a violation of these principles.

Precedent Name

  • KUCFAW versus Kassmart Supermarket
  • KUCFAW versus Homeafrika Ltd

Cited Statute

Employment Act 2007

Judge Name

D.K. NJAGI MARETE

Passage Text

  • i. Twelve (12) months compensation for unlawful termination of employment 18,515.15 x 12 ...........................Kshs.217,813.80 ii. The costs of the claim shall be borne by the Respondent.
  • The Claimant's case overwhelms that of the Respondent. She comes out clearer on a case of unlawful termination of employment. This is because no reason was offered for the termination of employment. The defence of the clause on termination on notice is no defence at all. There must always be a sustainable reason for termination, even in the event of a contract for wages.