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ELRCPartially AllowedCause Number 591 of 2010· [2013] KEELRC 121 (KLR)

David Matata Mbonza v Securex Agencies Kenya Limited [2013] KEELRC 121 (KLR)

Industrial Court at Nairobi
18 September 2013
1,540 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled a security guard's dismissal unfair because the employer skipped the mandatory hearing and couldn't prove its reasons, awarding 10 months' pay.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent security firm as a Guard and later Cash-in-Transit Crew from 21st January 1995, was summarily dismissed on 24th October 2008 after allegedly refusing to sign the attendance register and refusing to take up assigned Cash-in-Transit duties. The Claimant's version was that he reported ready for deployment but equipment was not made available, and the Human Resources Officer issued guards summary dismissal letters after a confrontation. He sought service pay, one month's salary in lieu of notice, 12 months' compensation, a certificate of service and a recommendation letter. The Respondent maintained the dismissal was justified for refusal to obey lawful instructions, that the Claimant appealed unsuccessfully, and that he accepted final dues in full settlement. The Court found the Respondent failed to discharge its burden of justifying dismissal: neither the officer giving the instructions nor the supervisor testified, there was no second warning, show-cause letter, formal charges or disciplinary hearing, and Section 41 of the Employment Act 2007 was completely absent from the process. Termination was unfair both substantively and procedurally. The Court awarded one month's notice pay (Kshs. 10,402) and compensation of 10 months' salary (Kshs. 104,020), totalling Kshs. 114,422, payable within 30 days, and ordered a certificate of service. Service pay was refused because the Claimant subscribed to N.S.S.F under Section 35(6), and the Court held it lacked authority to order a recommendation letter. No order was made on costs and interest.

Key legal issues

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01

Valid reason for dismissal

Holding

No valid reason was shown to justify the dismissal

Reasoning

The letter of summary dismissal alleged disregard of lawful instructions, but the officer who gave those instructions did not testify. The supervisor said to have instructed the Claimant also did not appear. The sequence from first warning to dismissal within a day was unexplained. The Respondent failed to reveal the full scenario and discharge its burden of justification.

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02

Procedural fairness under Section 41 of the Employment Act 2007

Holding

The disciplinary process breached the statutory minimum procedure, rendering the termination procedurally unfair

Reasoning

After the first warning of 23rd October 2008, the Claimant was not heard; there was no show-cause letter, no formal charges, no invitation to a disciplinary hearing in a language he understood, and no opportunity to explain himself accompanied by a co-worker or workers' representative. Termination was unfair both substantively and procedurally.

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03

Remedies for unfair termination

Holding

Claimant awarded notice pay and 10 months' compensation, but refused service pay and recommendation letter

Reasoning

One month's notice pay was granted; compensation was assessed at 10 months' salary rather than the 12 sought. Service pay was refused due to N.S.S.F subscription under Section 35(6). A certificate of service could be ordered under Section 51, but not a recommendation letter.

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Legal principles established

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  • The employer bears the burden of justifying the grounds for summary dismissal; allegations unsupported by witness evidence are insufficient
  • Dismissal without compliance with the disciplinary procedure in Section 41 of the Employment Act 2007 is procedurally unfair
  • Employees subscribed to N.S.S.F are not eligible for service pay under Section 35(6) of the Employment Act 2007

Court orders

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  1. 1.A declaration that termination of the Claimant's contract of employment was unfair
  2. 2.The Respondent shall pay the Claimant 10 months' salary in compensation at Kshs. 104,020
  3. 3.The Respondent shall pay the Claimant 1 month salary in lieu of notice at Kshs. 10,402
  4. 4.The total sum of Kshs. 114,422 shall be paid within 30 days of delivery of the Award
  5. 5.Certificate of Service to be availed to the Claimant by the Respondent forthwith
  6. 6.No order on the costs and interest

Authorities

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Legislation

  • Employment Act 2007Section 41
  • Employment Act 2007Section 35(6)
  • Employment Act 2007Section 51
Jurisdiction invoked
Jurisdiction of the Industrial Court over employment disputes (issue in dispute: unfair and unlawful termination); file referred to the Court by the Principal Judge Nderi Nduma

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "David Matata Mbonza v Securex Agencies Kenya Limited [2013] KEELRC 121 (KLR)", Case Analysis (2013). Cause Number 591 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/121/eng@2013-09-18

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.