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ELRCPartially AllowedCause Number 2094 of 2011· [2014] KEELRC 730 (KLR)

Whencelause Gilbert Jumba Swinnerstone v Ryce East Africa Limited [2014] KEELRC 730 (KLR)

Industrial Court at Nairobi
23 January 2014
2,504 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 found the dismissal was justified on the facts but unfair because the employer skipped proper disciplinary procedure, awarding the worker seven months' salary.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 17th October 2005 as a Welder and Fabricator rising to Head of Panel Beating and Fabricators, was summarily dismissed on 29th August 2011 for alleged gross misconduct after a polythene bag containing small balls, a towing hook and brackets was found in the last of three customer Toyota Landcruisers he was driving out for conversion into ambulances. He claimed notice pay, 12 months' compensation, severance pay and general and punitive damages. The Court framed three issues: valid reason, fairness of procedure, and remedies. On substance, the Court accepted the credible evidence of Security Guard Daud Abdullahi and held the Respondent had reasonable and sufficient grounds to suspect an employment offence, the employer's standard of proof being less onerous than the criminal standard; termination was thus substantively justified under Sections 43 and 45 of the Employment Act 2007. On procedure, however, the Respondent gave no written charges, held no disciplinary hearing under Section 41, and erroneously relied on the repealed Section 17 of the Employment Act Cap 226, thereby denying the Claimant the procedural guarantees of the 2007 Act; termination was therefore unfair on procedure. Severance pay was refused, no redundancy having arisen, and service pay was barred by the Claimant's N.S.S.F membership; punitive and general damages were refused as the Claimant had mitigated his loss. The Court awarded one month's salary in lieu of notice (Kshs. 44,000) and 7 months' gross salary compensation (Kshs. 308,000), totaling Kshs. 352,000 payable within 30 days, with no order on costs and interest.

Key legal issues

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01

Whether there was substantive justification for termination

Holding

Yes - the Respondent had valid reason to suspect the Claimant committed an employment offence, satisfying Sections 43 and 45 of the Employment Act 2007

Reasoning

Items belonging to customer vehicles were found in the third Landcruiser the Claimant drove out of the gate. The honest security witness recovered them; the Claimant could not give a plausible explanation. An employer's standard is lower than the criminal standard; reasonable and sufficient suspicion sufficed as substantive justification.

p. 4
02

Whether the termination procedure was fair

Holding

No - the procedure fell below Sections 41 and 45; there were no written charges, no disciplinary hearing, and the dismissal relied on repealed legislation

Reasoning

No letter called the Claimant to answer charges, no formal disciplinary hearing was held, and the dismissal letter gave no specific findings, merely citing gross misconduct under the retired Employment Act Cap 226. This deprived the Claimant of the procedural guarantees of the 2007 Act, making termination unfair on procedure alone.

p. 4
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Entitlement to severance/service pay and additional damages

Holding

No severance pay; no punitive or general damages beyond the compensatory award

Reasoning

Severance under Section 40 requires redundancy, which did not arise. Service pay under Section 35 was excluded as the Claimant was an N.S.S.F member. Compensation of 7 months' salary sufficed, particularly as the Claimant had mitigated his loss by obtaining new employment.

p. 4

Legal principles established

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  • The standard of proof required of an employer in establishing a valid reason for termination is less onerous than the criminal standard
  • An employer who relies on repealed law predating the Employment Act 2007 denies the employee the procedural guarantees under Sections 41 and 45, rendering termination procedurally unfair
  • An N.S.S.F member is not entitled to service pay under the Employment Act 2007

Court orders

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  1. 1.Declaration that termination was on valid ground
  2. 2.Declaration that the procedure was defective, making termination unfair
  3. 3.Respondent to pay the Claimant one month salary in lieu of notice at Kshs. 44,000
  4. 4.Respondent to pay the Claimant 7 months' gross salary at Kshs. 308,000 in compensation
  5. 5.Total sum of Kshs. 352,000 to be paid within 30 days of delivery of the Award
  6. 6.No order on the costs and interest

Authorities

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Legislation

  • Employment Act 2007Sections 35, 40, 41, 43, 44(4), 45
  • Employment Act, Cap 226 Laws of KenyaSection 17
Jurisdiction invoked
Employment and labour relations dispute under the Employment Act 2007 (Industrial Court first-instance jurisdiction)

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, "Whencelause Gilbert Jumba Swinnerstone v Ryce East Africa Limited [2014] KEELRC 730 (KLR)", Case Analysis (2014). Cause Number 2094 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/730/eng@2014-01-30

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