On Procedural fairness to justify termination in a contract of employment: The Case of Waweru v Optimise Outsourcing Limited (Cause E760 of 2023) [2025] KEELRC 1191 (KLR)

 

PART I:

Legal Brief

Case Title:
John Brian Waweru v. Optimise Outsourcing Limited
Court: Employment and Labour Relations Court at Nairobi
Judge: B. M. A. Onyango
Case No.: Cause No. E760 of 2023
Date of Judgment: April 28, 2025

---

Facts:

John Brian Waweru was employed by Optimise Outsourcing Limited as an Assistant Management Accountant from June 6, 2022, earning Kshs. 100,000 per month. After completing his probation, he continued working until August 25, 2023, when he was verbally dismissed without prior notice or a hearing. A formal letter followed on August 31, 2023, citing breach of a consultancy agreement.

---

Issues:

1. Whether the termination of the claimant's employment was procedurally and substantively fair.

2. Whether the claimant was entitled to remedies for unfair termination.

---

Holding:

The court held that the termination was unfair, citing violation of Sections 41, 43, and 45 of the Employment Act, 2007. The employer failed to provide a valid reason or allow the claimant an opportunity to be heard.

---

Decision:

• The court awarded the claimant Kshs. 350,000 (equivalent to 3½ months’ salary) as compensation for unfair termination.

• Ordered issuance of a Certificate of Service.

• Interest on the award at court rates from the date of judgment.

• No order as to costs.

---

Legal Principles:

• Procedural fairness requires notice and hearing before termination (Section 41).

• Employers must justify termination with valid reasons (Section 43).

• Unfair termination attracts compensation (Section 49).

PART II

Summarized Case Brief:

The Employment and Labour Relations Court (ELRC) of Kenya delivered a significant judgment on April 28, 2025, in the case of Waweru v. Optimise Outsourcing Limited (Cause E760 of 2023). The court found that the claimant, John Brian Waweru, was unfairly dismissed by his employer, Optimise Outsourcing Limited, and awarded him compensation.

Case Summary:

• Employment Details: Waweru was employed as an Assistant Management Accountant by Optimise Outsourcing Limited, starting on June 6, 2022. His employment letter was dated May 19, 2022, and his monthly salary was Kshs. 100,000. He served a probationary period of six months, ending on November 6, 2022.

• Dismissal: On August 25, 2023, Waweru was verbally informed of his dismissal. He was told that a formal letter detailing the reasons for his dismissal would follow. On August 31, 2023, he received a letter stating that he had breached the terms of his consultancy engagement.

• Legal Claims: Waweru contended that his dismissal violated his constitutional rights under Articles 28 (dignity), 41 (fair labour practices), and 47 (fair administrative action), as well as statutory rights under Sections 41, 43, and 45 of the Employment Act.ogekatimeslaw.blogspot.com

Court's Findings:

• Unfair Termination: The court declared that Waweru's termination was unfair due to procedural deficiencies. Specifically, the employer failed to follow the due process required under the Employment Act, including providing a valid reason for dismissal and an opportunity for the claimant to respond.

• Compensation: The court awarded Waweru compensation equivalent to 3½ months' salary, amounting to Kshs. 350,000.

• Additional Orders: The employer was ordered to issue a Certificate of Service to Waweru. The court did not make any orders regarding costs.

• Interest: Interest on the awarded amount was allowed at the court rate, from the date of judgment.

Significance:

This judgment underscores the importance of adhering to due process in employment terminations. Employers are reminded of their obligation to ensure that dismissals are conducted fairly and in accordance with the law, safeguarding employees' constitutional and statutory rights.