“No Automatic Compensation for Unfair Termination”: An Analysis of the Court’s Decision in Nyeri/ELRC/E048/2023 Dr. Eunice Njoki Mutahi Vs County Government of Kirinyaga and Others
Introduction
The Employment and Labour Relations Court (ELRC) has over the years of its existence been considered as a pro-employee court. Employers have often found themselves on the receiving end of adverse judgments and awards.
In a judgment delivered in the case of Nyeri/ELRC/E048/2023 Dr. Eunice Njoki Mutahi Vs County Government of Kirinyaga and others on 1st August 2023, Employers may have good reason to view the court with a different lens.
Brief Summary of the Case
The Claimant filed a claim for constructive dismissal after her employer allegedly stopped paying her salary in September 2020. She claimed that the employer’s conduct amounted to the alleged repudiatory breach of her contract, and this forced her to resign. The employer, on the other hand, stated that the stoppage of her salary was justified as her conduct had allegedly made it impossible for her to work with other employees and that she had also absconded duty. It was submitted by the employer that the Claimant underwent disciplinary proceedings whereby she was expelled from different departments due to her conduct.
The Court found that indeed the Claimant had been constructively dismissed as the stoppage of her salary amounted to a breach of her employment contract. The Court, however, declined to award any compensation to the Claimant citing that the claimant contributed to her termination through misconduct which saw her expelled from all the Hospital departments except the COVID-19 isolation Ward. Secondly, the Court held that it is evident that she was able to mitigate the loss of her employment by securing another employment.
Legal Analysis
This is a distinct and arguably progressive judgment. The employment courts seldom shies away from awarding damages if an employer is found to have unfairly terminated an employee. This decision perhaps establishes a new precedent on the considerations that an employment court may factor in when awarding compensation for unfair compensation.
One of the key factors that stands out from this judgment is that the Court carefully considered and weighed the conduct of the employee prior to the termination. Secondly, the Court also considered whether the employee had been able to secure employment elsewhere, thus implying that employees who have been unfairly terminated and have since been employed elsewhere may not necessarily need to be awarded compensation for unfair termination.
Summary
This judgment advocates that compensation for unfair termination is not automatic and judges are invited to consider other relevant factors such as the conduct of an employee in determining the issue of compensation. It will be interesting to see if this judgement is isolated and/or if it will consist of a watershed moment in the life of the ELRC.
If you have any queries relating to the above and other employment queries, please do not hesitate to contact James Wairoto and Joan Gakure. Please note that this e-alert is meant for general information only and should not be relied upon without seeking specific subject matter legal advice.
