Automated Summary
Transaction Type
Employment Contract
Key Facts
The claimant, Anastacia Wambui Wanjiru, was employed by Medina Palms under a fixed-term Food and Beverage Captain contract from 11.9.2013 to 11.6.2014, renewed for 9 months ending 12.3.2015. The respondent terminated her on 30.10.2014, alleging gross misconduct for denying room service to a guest and invading their privacy by apologizing in their room. The claimant denied the misconduct, asserting she followed her manager’s directive to halt room service due to staffing shortages and that the guest permitted her to apologize. The court found the termination unfair due to her clean disciplinary record, compliance with management orders, and lack of proper due process under section 41 of the Employment Act. The respondent failed to present evidence or witnesses to contest her claims. Judgment was awarded for Kshs. 133,008/= (5 months remaining salary, overtime, and service charges), with the unfair termination compensation claim dismissed to prevent double benefit.
Issues
- Whether the termination of the claimant's fixed-term employment contract on 30.10.2014 was unfair and unjustified, considering she had a clean disciplinary record, acted in obedience to her supervisor's directives, and was denied a proper hearing under section 41 of the Employment Act.
- Whether the claimant is entitled to compensation for unfair termination in addition to her unexpired contract period earnings, or if the award of unexpired salary alone constitutes sufficient remedy under Kenyan employment law.
Holdings
The court held that the termination of the claimant's employment was unfair and unjustified. Key determinations included: (1) the claimant had a clean disciplinary record for over a year; (2) she acted in obedience to her immediate boss's directive to suspend room service during a busy period; (3) she followed protocol by apologizing to the guest in his room as instructed by management; and (4) the employer failed to comply with Section 41 of the Employment Act by not providing a fair hearing with proper explanation and opportunity for representation. The court awarded the claimant Kshs. 133,008/= (including salary for the remaining 5 months of her contract, overtime, rest days, and service charges) but dismissed her compensation claim for unfair termination to avoid double recovery.
Remedies
- The claimant received Kshs.4,615/= for compensation related to 3 rest days worked.
- The claimant was awarded Kshs.120,000/= representing her gross salary for the 5 months remaining under her fixed-term contract (Kshs.24,000/month x 5 months).
- An additional Kshs.2,855/= was awarded as service charge for October 2014.
- Kshs.5,538/= was awarded for accumulated overtime worked over 6 days.
- The court dismissed the claimant's request for compensation for unfair termination, citing that it would result in double benefit and unfair enrichment as she was already awarded the total salary for the unexpired period.
Monetary Damages
133008.00
Legal Principles
The court applied the principle of natural justice, finding the employer's termination of the claimant's contract unfair due to failure to follow Section 41 of the Employment Act. This section mandates that employers must explain termination reasons in understandable language, allow the employee to be accompanied by a representative, and consider their representations before making a decision. The respondent did not provide a fair hearing as required.
Cited Statute
Employment Act 2007
Judge Name
Onesmus Makau
Damages / Relief Type
- Compensatory Damages: Kshs.2,855 for service charge
- No compensation awarded for unfair termination to avoid double benefit
- Compensatory Damages: Kshs.5,538 for accumulated overtime
- Compensatory Damages: Kshs.4,615 for rest day compensation
- Compensatory Damages: Kshs.120,000 for unexpired contract period
Passage Text
- the court finds and holds that the termination of the claimant's contract of employment was unfair and unjustified. First, she had a clean record of service for over a year. Second she acted in obedience to directive from her immediate boss... Fourth, the claimant was never accorded fair hearing within the meaning of section 41 of the Employment Act (EA).
- Section 41 of Employment Act, provides that, before an employer terminates the services of an employee for misconduct... the employee shall have the right of being accompanied by fellow employee or shop floor union representative of his choice.
- The claimant was earning a gross salary of kshs. 24,000 x 5 months outstanding under the contract = kshs. 120,000/=... The claim for compensation for unfair termination is dismissed because it would give the claimant double benefit and unfair enrichment.