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ELRCDismissedNot stated in the excerpt· [2015] KEELRC 160 (KLR)

David Nyamai & 7 others v Del Monte Kenya Limited [2015] KEELRC 160 (KLR)

Employment and Labour Relations Court
4 December 2015
2,342 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenyan workers fired over theft accusations can sue within 12 months of being acquitted, as employer criminal allegations count as a continuing injury.

What this practically means

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Executive summary

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This is a ruling on a preliminary objection in an employment claim at the Employment and Labour Relations Court, Nyeri, delivered by Byram Ongaya, J, on 4 December 2015. Seven claimants (five relevant to the objection) were terminated on 04.10.2011 after being accused of colluding and stealing 21 bags of company urea fertilizer. They sued for unfair termination and associated reliefs. The respondent objected that the claims of the 1st, 2nd, 3rd, 6th and 7th claimants were time barred under section 90 of the Employment Act, 2007, the suit having been filed on 24.10.2014, 20 days after expiry of the three-year limitation period, relying on Beatrice Kahai Adagala v Postal Corporation of Kenya. The claimants contended the cause of action was a continuing one: they were acquitted in Thika Criminal Case No. 3435 of 2007 on 01.04.2014, reported to the respondent seeking reinstatement, and issued a demand letter; the injury crystallised only on the criminal judgment. The court first found the claimants had adequately pleaded reliance on the criminal judgment. It then held that an employer cannot make findings of criminal liability; a criminal allegation against an employee is a continuing injury crystallising on the date of the criminal court's judgment, so the employee had 12 months from that date under section 90. In the alternative, the suit founded on the acquittal order fell within the 12-year period under section 4 of the Limitation of Actions Act. The court applied its own earlier decisions and the Mbowa principle that time runs from acquittal. The preliminary objection was dismissed with costs and parties were directed to take directions towards the hearing of the suit.

Key legal issues

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01

Pleading of the criminal case judgment

Holding

The claimants sufficiently pleaded the unfairness of the termination and filed the criminal case judgment as a document relied upon, so they may rely on it.

Reasoning

The memorandum of claim pleaded that termination was for alleged stealing of company fertilizer and was unfair and unlawful. Under section 43 of the Employment Act, an invalid or genuine reason for termination constitutes unfair termination. Having pleaded the reason and filed the criminal judgment in their list of documents, the claimants were within their pleadings; the respondent failed to show the criminal case fell outside the pleadings.

p. 2
02

Limitation - continuing injury under section 90 of the Employment Act

Holding

The criminal allegation was a continuing injury that ceased on the date of the criminal court's judgment, so the suit filed on 24.10.2014 was within time.

Reasoning

Only criminal courts have jurisdiction to determine criminal liability. Where an employer alleges criminal conduct as reason for termination, the injury continues until resolved by the criminal court. Under section 90 of the Employment Act, the employee may file within 12 months of the cessation of the injury, being the date of judgment in the criminal case. The claimants were acquitted on 01.04.2014 and filed suit on 24.10.2014, within time.

p. 3
03

Alternative limitation ground - action on a court judgment

Holding

Even in the alternative, the suit grounded on the acquittal order was within the 12-year period under section 4 of the Limitation of Actions Act.

Reasoning

The court relied on its earlier decision in Kenya Petroleum Workers Union v Kenya Pipeline Company Ltd, holding that a cause of action grounded on an acquittal order falls under the 12-year limitation period for actions based on a court judgment or order, so it would be contrary to substantive justice to dismiss the suit as time barred.

p. 4

Legal principles established

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  • An employer is not a prescribed court for making findings on criminal liability and lacks power to determine criminal guilt of an employee.
  • Where an employer alleges criminal conduct as a reason for termination, that allegation is a continuing injury crystallising on the date of judgment in the criminal case, and under section 90 of the Employment Act the employee may file suit within 12 months of that date.

Court orders

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  1. 1.The preliminary objection on limitation was dismissed
  2. 2.Costs of the preliminary objection awarded to the claimants
  3. 3.Parties invited to take directions towards the hearing and determination of the suit

Authorities

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Legislation

  • Employment Actsection 90
  • Employment Actsection 43
  • Limitation of Actions Act, Cap. 22 Laws of Kenyasections 4 and 4(4); sections 27 and 28
  • Constitution of Kenya, 2010Article 50(2)(d); Article 159(2)(d)
  • Criminal Procedure Code, Cap 75section 4 and first schedule
  • Penal Code, Cap 63sections 281; first schedule fifth column

Cases cited (5)

  • Beatrice Kahai Adagala v Postal Corporation of Kenya
    [2015]eKLR
  • Mathew Kipchumba Koskei v Baringo Teachers SACCO
    [2013] eKLR, Industrial Cause No. 37 of 2013 at Nakuru
  • Kenya Petroleum Workers Union v Kenya Pipeline Company Limited
    [2014]eKLR
  • Andrew Maina Githinji and Another v The Hon. Attorney General and Another
    [2015]eKLR
  • Mbowa v East Mengo Administration
    (1972)E.A. 352
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (section 90) and the Constitution

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, "David Nyamai & 7 others v Del Monte Kenya Limited [2015] KEELRC 160 (KLR)", Case Analysis (2015). Not stated in the excerpt. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/160/eng@2015-12-04

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