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ELRCPartially AllowedCause 421 of 2011· [2013] KEELRC 501 (KLR)

ESHA CHIZI LUGOGO V PACT KENYA [2013] KEELRC 501 (KLR)

Industrial Court of Kenya
20 February 2013
2,191 words in judgment
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The bottom line

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What this practically means

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Executive summary

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The Claimant, employed by the Respondent from December 2002 as Receptionist/Secretary and later promoted to Administrative Assistant, sued for unfair termination of her employment on 6th April 2009 on allegations of insubordination, dishonesty and fraudulent conduct relating to telephone bills and inflated taxi receipts from a Zanzibar trip. She claimed severance pay, reimbursement of Zanzibar trip expenses of US$ 563.05, welfare contributions, salary in lieu of notice, six days' salary, prorata leave, defamation damages, and twelve months' salary as compensation for unfair termination. The Respondent denied the dismissal was unjustified, asserting the Claimant was heard at meetings before termination and had failed to account for personal calls and prior travel advances. It counterclaimed for personal call charges. The Court found that the Claimant was given an opportunity to respond to the allegations as required by Section 41 of the Employment Act, and rejected her sworn testimony as inconsistent and evasive, accepting the Respondent's evidence instead. The claim for unfair termination was dismissed. Severance pay was held misplaced in a dismissal (being applicable to redundancy); the welfare contributions claim failed as the contributions were authorised and non-refundable; the defamation claim failed on its ingredients, though the Court affirmed jurisdiction over employment-related defamation; the Zanzibar and leave claims were unproved. The counterclaim for Kshs. 28,541 was dismissed for lack of proof, but the admitted Kshs. 8,567.70 was made recoverable from the Claimant's final dues. Each party was ordered to bear its own costs.

Key legal issues

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01

Whether the termination was justifiable under Sections 41 and 44 of the Employment Act

Holding

The termination was justifiable; the Claimant was given an opportunity to make representations on the allegations, satisfying Section 41, and the claim for unfair termination was dismissed

Reasoning

Section 44(3) permits summary dismissal for fundamental breach, including failure to follow lawful instructions. Section 41 requires the employer to explain the reasons and hear the employee's representations. Meetings were held between the Claimant and the Respondent's representatives before termination, and the Respondent's evidence that she was heard was accepted. The Claimant's contradictory and evasive sworn evidence was rejected as unreliable, leaving the Respondent's account uncontroverted.

p. 4
02

Whether the Industrial Court has jurisdiction over a defamation claim arising from an employment relationship

Holding

The Court held it has jurisdiction over defamation arising in the course of employment, but the claim failed on the facts

Reasoning

The Respondent argued the Court lacked jurisdiction to entertain a tort claim. The Court rejected this, holding that a defamation claim can lie alongside employment claims. However, on the facts, the ingredients of defamation were not established, so the claim was dismissed on merits rather than for want of jurisdiction.

p. 4
03

Whether the Claimant proved her claim for Zanzibar trip expenses

Holding

The claim was dismissed for failure to prove damages with cogent evidence

Reasoning

The Claimant presented jumbled documents, some dating from 2008 despite the trip having taken place in February 2009. Applying Bonham Carter v Hyde Park Hotel, the Court held that a party claiming damages bears the burden of proving them; particulars alone are insufficient. The receipts submitted did not support the claimed expenses.

p. 4
04

Whether the Respondent proved its counterclaim for the balance of personal telephone calls

Holding

The counterclaim for Kshs. 28,541 was dismissed but the admitted Kshs. 8,567.70 was recoverable from the Claimant's final dues

Reasoning

The Respondent presented no criteria for separating personal from official calls, so the disputed balance was unproved. The admitted portion of Kshs. 8,567.70 was ordered to be offset against the Claimant's final dues.

p. 5

Legal principles established

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  • Evidence that is inconsistent and contradictory must be rejected
  • A claim in defamation may lie alongside other claims arising out of the employment relationship
  • An employee who refuses to engage the employer's internal grievance mechanisms cannot claim in court that they were not heard

Court orders

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  1. 1.The Claimant's claim for unfair termination is dismissed
  2. 2.The claims for welfare contributions, severance pay, prorata leave, six days' salary for April 2009, defamation and Zanzibar trip expenses are dismissed
  3. 3.The Respondent's counterclaim for Kshs. 28,541 balance on personal calls is dismissed
  4. 4.The admitted sum of Kshs. 8,567.70 is recoverable from the Claimant's final dues, which are to be computed in accordance with the award and released to the Claimant forthwith
  5. 5.Each party to bear their own costs
Jurisdiction invoked
Industrial Court jurisdiction over employment and labour relations disputes

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, "ESHA CHIZI LUGOGO V PACT KENYA [2013] KEELRC 501 (KLR)", Case Analysis (2013). Cause 421 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/501/eng@2013-02-20

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