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ELRCPartially AllowedCause No 1149 of 2013· [2014] KEELRC 1472 (KLR)

Richard Machani Luka v Kuldeep Singh Devgan [2014] KEELRC 1472 (KLR)

Industrial Court of Kenya
8 December 2014
1,379 words in judgment
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The bottom line

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A Kenyan court ruled a security guard's dismissal unfair because his employer never gave him a hearing, awarding him Kshs. 117,000 despite a valid theft-related reason.

What this practically means

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Executive summary

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The Claimant, a private security guard employed by the Respondent at a monthly salary of Kshs. 9,000, sued for unfair termination following his dismissal on 10th June 2013 on allegations that stolen goods, including laptop computers and projectors, were found in his living quarters. The court framed three issues: validity of the reason for termination, procedural fairness, and entitlement to reliefs. On the first issue, the court held that on a balance of probability the Respondent had a valid reason, since the suspect items could not have been brought into the Claimant's quarters without his knowledge and acquiescence, and the Claimant's witnesses gave materially inconsistent accounts of no probative value. On procedure, however, the court found no evidence of any hearing as contemplated by Section 41 of the Employment Act, 2007, and for that reason alone declared the termination unfair for want of procedural fairness. On reliefs, the court adopted the Claimant's stated employment period of 3rd February 2001 to 10th June 2013, the Respondent having failed its documentation duty under Sections 9(2) and 10(7) of the Employment Act. The court awarded six months' salary as compensation for unfair termination, one month's salary in lieu of notice, and service pay for 12 years (no NSSF contributions having been shown), totalling Kshs. 117,000. Claims for public holidays worked and overtime compensation were dismissed as unproved. The Respondent was ordered to pay costs, with interest on the award at court rates from the date of the award until payment in full.

Key legal issues

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01

Whether the Respondent had a valid reason for terminating the Claimant's employment

Holding

The Respondent had a valid reason - suspect stolen items were found in the Claimant's living quarters and could not have been brought in without his knowledge and acquiescence.

Reasoning

The standard is the balance of probability: the employer need only show a reasonable cause that would lead a reasonable employer to terminate. Items of suspect origin were found in the Claimant's quarters, and the court found it implausible they were brought in without his knowledge. Witnesses for the Claimant gave materially inconsistent accounts and were of no probative value.

p. 2
02

Whether the Respondent observed due procedure in effecting the termination

Holding

Termination was procedurally unfair for want of a hearing under Section 41.

Reasoning

Termination for misconduct required explanation of reasons to the employee in a language he understands, presence of a representative, and hearing of explanations. The nature of the employment did not demand a sophisticated process, but some form of hearing was required; no evidence of any hearing existed.

p. 3
03

Effective date of the Claimant's employment

Holding

The court adopted the Claimant's stated period of 3rd February 2001 to 10th June 2013, as the employer failed its documentation duty under Sections 9(2) and 10(7) of the Employment Act.

Reasoning

The responsibility of documenting an employment relationship lies with the employer. An employer who fails in this primary duty cannot controvert the terms of employment as provided by the employee. The Respondent's contention of a six-year employment was therefore rejected.

p. 3
04

Reliefs

Holding

Six months' salary compensation, one month's notice pay and service pay awarded; claims for public holidays and overtime dismissed as unproved.

Reasoning

Compensation was scaled to six months having regard to length of service but also the finding of a valid reason for termination. Service pay was allowed because no NSSF contributions were shown. The holiday and overtime claims lacked evidential proof.

p. 3

Legal principles established

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  • Under Section 43 of the Employment Act, the employer bears the burden of showing a reasonable cause that would lead a reasonable employer to terminate employment, decided on a balance of probability.
  • Even where a valid reason for termination exists, absence of any hearing under Section 41 renders the termination unfair for want of procedural fairness.
  • Where the employer fails to document the employment relationship, the employee's stated terms and period of employment are adopted by the court.

Court orders

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  1. 1.Award of 6 months' salary (Kshs. 54,000) in compensation for unfair termination
  2. 2.Award of 1 month's salary in lieu of notice (Kshs. 9,000)
  3. 3.Award of service pay for 12 years (Kshs. 54,000)
  4. 4.Total award of Kshs. 117,000 in favour of the Claimant
  5. 5.Award to attract interest at court rates from the date of the award until payment in full
  6. 6.Respondent to meet the costs of the case

Authorities

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Legislation

  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 9(2)
  • Employment Act, 2007Section 10(7)

Cases cited (1)

  • Rebecca Ann Maina and Others Vs Jomo Kenyatta University of Agriculture and Technology
    [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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Cite this brief

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Cite this brief

Caselaw, "Richard Machani Luka v Kuldeep Singh Devgan [2014] KEELRC 1472 (KLR)", Case Analysis (2014). Cause No 1149 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1472/eng@2014-12-08

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