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ELRCDismissedCause No. 1437 of 2012· [2014] KEELRC 73 (KLR)

George Kariuki Ngugi & 2 others v Brolaz East Africa Limited [2014] KEELRC 73 (KLR)

Industrial Court of Kenya
5 December 2014
4,159 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~17 min to read original · ~4 min brief

The bottom line

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The Industrial Court dismissed three employees' claims, ruling their employer followed proper disciplinary procedure before summarily dismissing them for gross misconduct.

What this practically means

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Executive summary

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Three claimants, formerly employed by Brolaz East Africa Limited as a Divisional Manager Operations, a Computer Aided Design technician and a Field Manager, brought consolidated claims (Cause Nos. 1338, 1436 and 1437 of 2012) challenging summary dismissals in April 2012 on allegations of fraud, abuse of office, soliciting kickbacks and encouraging ghost workers. They sought declarations that the dismissals were unlawful and amounted to constructive redundancy, severance pay, twelve months' salary compensation, notice pay, unremitted PAYE for 2011, interest, general damages and costs. The respondent defended the dismissals as lawful consequences of gross misconduct under Section 44(4)(c) and (g) of the Employment Act, 2007, asserting that investigations followed complaints by a subcontractor and anonymous emails, and that the claimants were notified, heard at disciplinary meetings and dismissed with reasons stated in the dismissal letters. The court framed four issues: lawfulness of termination, entitlement to relief, PAYE non-remittance, and costs. It found full compliance with Sections 41, 42 and 44 of the Employment Act, no unfair termination under Section 45, and held the claimants had not rebutted the evidence of gross misconduct. The PAYE claim failed for want of proof, unrebutted by the claimants. The causes were dismissed with costs to the respondent, the losing party bearing costs.

Key legal issues

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01

Whether termination was wrongful, unfair and unlawful

Holding

Termination was lawful; the respondent complied with Sections 41, 42, 44 and 45 of the Employment Act

Reasoning

The claimants were notified of disciplinary proceedings which took place, were given opportunity to respond, and failed to rebut the evidence of gross misconduct. Allegations of fraud were investigated following complaints and anonymous emails. The court held the respondents addressed and complied with the law and procedure to the hilt, finding no unfair termination under Section 45.

p. 8
02

Whether the claimants are entitled to the relief sought

Holding

No relief awarded as the primary claim failed

Reasoning

Having lost their case for unfair, wrongful and unlawful termination, the claimants could not succeed on the ancillary reliefs of severance pay, compensation, notice pay, interest and general damages.

p. 8
03

Whether the respondent failed to remit income tax deductions for 2011

Holding

Claim failed for want of proof

Reasoning

Despite the claim of non-remittance, no evidence was adduced to prove it. The respondent submitted there were no tax balances with the Kenya Revenue Authority and the claimants did not rebut that position, so the court did not need to determine where any amounts were owing.

p. 8
04

Who bears the costs

Holding

The losing party, the claimants, bear the costs

Reasoning

The matter was massive and contested and costs were incurred; the general principle that costs follow the event applied.

p. 8

Legal principles established

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  • An employer who notifies an employee of disciplinary proceedings, hears and considers their representations, and dismisses for gross misconduct with reasons set out in the dismissal letter complies with the procedural requirements of the Employment Act

Court orders

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  1. 1.Dismissal of the consolidated causes (Cause Nos. 1338, 1436 and 1437 of 2012) with costs to the respondent
  2. 2.Costs borne by the claimants

Authorities

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Legislation

  • Employment Act, 2007Section 44(4)(c) and (g)
  • Employment Act, 2007Section 44(2)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 42
  • Employment Act, 2007Section 45

Cases cited (1)

  • Gladys Boss Shollei Vs. JSC
    2014 eKLR
Jurisdiction invoked
Employment and Labour Relations jurisdiction of the Industrial Court of Kenya (Employment Act, 2007)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "George Kariuki Ngugi & 2 others v Brolaz East Africa Limited [2014] KEELRC 73 (KLR)", Case Analysis (2014). Cause No. 1437 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/73/eng@2014-12-05

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