Banking, Insurance & Finance Union v Co-Operative Bank Of Kenya Limited [2014] KEELRC 520 (KLR)
The bottom line
#Kenya's Industrial Court reinstated a bank clerk fired over a fraud she didn't commit, because Co-operative Bank skipped fair disciplinary procedure.
What this practically means
#Executive summary
#Key legal issues
#Whether the dismissal was wrongful, unfair and unlawful
The dismissal was wrongful, unfair and unlawful; the employer failed to prove a valid reason and did not observe fair procedure under ss.41 and 45 of the Employment Act.
The grievant verified signatures as instructed and did not participate in the fraud; the perpetrators appeared to be insiders. The employer relied on investigations whose report was not tabled. Procedure under the CBA and Staff Operations Manual was abrogated, and the disciplinary process was applied casually, offending ss.41, 43 and 45 of the Employment Act and Articles 41 and 47 of the Constitution.
Whether the grievant was required to do a call back before verifying signatures
She was not; the respondent's operating manual excluded the person who did signature verification from doing the call back.
The operating manual at page 19, para 3.1 states the call back should not be done by the person who received the instructions and did the KYC and signature verification. Having received instructions and verified signatures, the grievant doing a call back would itself have been a breach of procedure.
Whether the claimant is entitled to relief including reinstatement
Yes; the claimant was entitled to the relief sought, including reinstatement, lost salaries and compensation.
Having established unfair and unlawful termination of an employee with a blemish-free record and exemplary performance, the court found the claimant entitled to the relief sought and ordered reinstatement with full benefits, payment of lost salaries for the period of dismissal and eight months' compensation under the Employment Act.
Legal principles established
#- Employers must comply with their internal disciplinary procedural rules
- An employer who fails to prove a valid reason and fair procedure under ss.43 and 45 of the Employment Act effects an unfair termination
Court orders
#- 1.Termination of employment of Helen Nduta Ngugi declared wrongful, unfair and unlawful
- 2.Respondent ordered to reinstate Helen Nduta Ngugi to her former position without loss of benefits, seniority or service
- 3.Grievant to report to her work station on 25th April 2014 at 800 hours for deployment
- 4.Respondent to pay all salaries and allowances lost from 2nd August 2011, being Ksh.2,998,941.00
- 5.Respondent to pay 8 months' compensation for unlawful termination, being Ksh.727,016.00
- 6.Costs of the suit borne by the respondent
- Jurisdiction invoked
- Employment Act, 2007 (ss. 41, 43, 44, 45); Constitution of Kenya, 2010 Articles 41, 47 and 50(2)(j)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Banking Insurance and Finance Union (Kenya) v Co-operative Bank of Kenya Limited [2018] KEELRC 366 (KLR)[2018] KEELRC 366 (KLR)7 Dec 2018
Cite this brief
#Cite this brief
Caselaw, "Banking, Insurance & Finance Union v Co-Operative Bank Of Kenya Limited [2014] KEELRC 520 (KLR)", Case Analysis (2014). Cause No 2071 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/520/eng@2014-04-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.