Richard Mwendwa Muthama v Ladder Consulting Company Ltd & another [2020] eKLR Case Summary

Court
Employment and Labour Relations Court at Nairobi
Category
Civil
Judge(s)
Onesmus N. Makau
Judgment Date
October 29, 2020
Country
Kenya
Document Type
PDF
Number of Pages
2

Case Brief: Richard Mwendwa Muthama v Ladder Consulting Company Ltd & another [2020] eKLR


1. Case Information:
- Name of the Case: Richard Mwendwa Muthama v. Ladder Consulting Company Ltd & Martin Ngunga
- Case Number: Cause No. 1333 of 2016
- Court: Employment and Labour Relations Court at Nairobi
- Date Delivered: 29th October 2020
- Category of Law: Civil
- Judge(s): Onesmus N. Makau
- Country: Kenya

2. Questions Presented:
The central legal issues the court must resolve are:
- Whether the termination of the claimant's employment was unfair and therefore unlawful.
- Whether the claimant is entitled to the reliefs sought, including compensation for unlawful termination, unpaid salary, and accrued leave.

3. Facts of the Case:
The claimant, Richard Mwendwa Muthama, was employed by the 1st respondent, Ladder Consulting Company Ltd, as a driver from August 14, 2013, until his employment was terminated on February 14, 2014. He contended that the termination was unlawful as it lacked a valid reason and was executed without a prior hearing. Additionally, he claimed he had not taken any annual leave during his employment and was owed salary for January 2014 and for 14 days worked in February 2014. The claimant sought compensation amounting to Kshs. 240,000 for unlawful termination, Kshs. 30,000 for unpaid salary, earned leave, and costs.

4. Procedural History:
The respondent did not enter an appearance after being served with summons, leading the case to proceed by formal proof on June 29, 2020. The claimant sought and obtained leave to dispose of the case through written submissions based on the material on record. The claimant presented his employment contract, stated the circumstances of his termination, and highlighted the lack of a termination letter or hearing.

5. Analysis:
- Rules: The court considered relevant statutes from the Employment Act, specifically sections 35(1), 41, and 45. Section 45 prohibits unfair termination unless the employer can prove a valid and fair reason for the termination and that fair procedure was followed.
- Case Law: The claimant cited precedents, including *Alphonce Mghanga Mwachanya v. Operation 680 Limited* [2013] eKLR and *Kenfreight (EA) Limited v. Benson K. Nguti* [2016] eKLR, which established that an employer must provide a valid reason and afford the employee a hearing before termination.
- Application: The court found that the claimant's evidence, which was unchallenged by the respondent, demonstrated he was dismissed without valid reason and without a hearing, thus constituting unfair termination under the Employment Act. The court held that the claimant proved his case on a balance of probabilities.

6. Conclusion:
The court ruled in favor of the claimant, finding that his termination was unfair. He was awarded Kshs. 99,923.07 in total, which included compensation for unfair dismissal, unpaid salary, and accrued leave. The court emphasized the importance of adhering to procedural fairness in employment termination.

7. Dissent:
There were no dissenting opinions noted in this case.

8. Summary:
The court's decision underscored the necessity for employers to adhere to fair procedures when terminating employees. The claimant was awarded a total of Kshs. 99,923.07, reinforcing the legal protections against unfair dismissal in Kenya. This case serves as a significant reference for employment law, particularly concerning the rights of employees facing termination without just cause.

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