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ELRCDismissedCause 1583 of 2011· [2013] KEELRC 254 (KLR)

KENNETH GITONGA MARANGU V BOOKFIRST SPORTS PUB AND RESTAURANT SHERLOCKS DEN [2013] KEELRC 254 (KLR)

Industrial Court of Kenya
17 May 2013
1,432 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 upheld the dismissal of a stock controller accused of failing to deliver goods, ruling the employer followed fair procedure.

What this practically means

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Executive summary

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Kenneth Gitonga Marangu, employed by the Respondent as a Stock Controller on 1st October 2008 at a monthly salary of Kshs. 12,000, sued over the termination of his employment. He claimed the termination was unfair and unlawful, in violation of the Constitution, the Employment Act 2007, the Labour Institutions Act 2007 and ILO Convention 158, and sought anticipatory salaries to retirement, service pay, loss of earning capacity, incorporeal damages, 12 months' compensation, a declaration, interest and costs. The Respondent admitted the employment but maintained the contract was lawfully terminated on one month's written notice. It had suspended the Claimant on 18th October 2010 over the non-delivery of two cakes entrusted to him for the City Hall Branch, asked for a written explanation which he never gave, and then issued a month's termination notice on 25th November 2010. The Court found the termination was based on a valid reason, amounting to an offence under Section 44(4)(g) of the Employment Act, and that the procedural protections of Section 41 were satisfied since the Claimant was invited to respond and declined. The Court held there was no basis for anticipatory salaries or a retirement age of 60, that service pay was barred by Section 35(6) given NSSF membership, and that the remaining claims lacked legal or evidential support. The claim was dismissed in its entirety with no order on costs.

Key legal issues

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01

Valid reason for termination

Holding

The Court found a valid reason - the Claimant committed, or was reasonably suspected of committing, an employment offence under Section 44(4)(g) of the Employment Act

Reasoning

The Claimant was entrusted with two cakes to deliver to the City Hall Branch. Two Display Attendants confirmed the cakes were never delivered, and the Claimant gave contradictory accounts and did not explain what happened to the cakes. The Court was satisfied the Respondent was entitled to summarily dismiss him.

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02

Procedural fairness under Section 41

Holding

The employer discharged its procedural obligation by suspending the Claimant, requiring a written explanation and inviting him to respond; his failure to respond could not later ground a complaint of unfair procedure

Reasoning

The Claimant was suspended on 18th October 2010 and asked to give a written response and report back on 2nd November 2010. He chose not to respond. Only after that was a one-month termination notice issued on 25th November 2010, and he served the notice period and was paid terminal dues of Kshs. 19,227.

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03

Remedies

Holding

The claims for anticipatory salaries, service pay, loss of earning capacity, incorporeal damages and 12 months' compensation all failed

Reasoning

There was no contractual or statutory basis for a retirement age of 60 or anticipatory salaries; service pay was barred by Section 35(6) given NSSF membership; loss of earning capacity and incorporeal damages lacked legal and evidential support; and termination being neither unfair nor unlawful, no statutory compensation or damages were due.

p. 3

Legal principles established

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  • An employee who is given the opportunity to respond to allegations and refuses to do so cannot later complain of denial of procedural justice
  • Misappropriation of employer's property amounts to a summary dismissal offence under Section 44(4)(g) of the Employment Act
  • An employee subscribed to NSSF is not eligible for service pay under Section 35(6) of the Employment Act

Court orders

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  1. 1.The claim is dismissed in its entirety
  2. 2.No order on the costs

Authorities

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Legislation

  • Employment Act 2007Section 2
  • Employment Act 2007Section 44[4][g]
  • Employment Act 2007Section 41
  • Employment Act 2007Section 35[6]
  • Labour Institutions Act 2007
  • Constitution of Kenya
  • ILO Convention Number 158
Jurisdiction invoked
Industrial Court of Kenya, Cause 1583 of 2011 (dispute referred under the Labour Institutions Act 2007)

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, "KENNETH GITONGA MARANGU V BOOKFIRST SPORTS PUB AND RESTAURANT SHERLOCKS DEN [2013] KEELRC 254 (KLR)", Case Analysis (2013). Cause 1583 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/254/eng@2013-05-17

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