Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in judgment· [2015] KEELRC 182 (KLR)

Johnstone Mwendwa v KUL Graphics Limited [2015] KEELRC 182 (KLR)

Industrial Court (Employment and Labour Relations Court)
6 November 2015
957 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled an employer cannot disguise a misconduct firing as redundancy without proof, and awarded the employee over Kshs.400,000 plus costs.

What this practically means

#

Executive summary

#
The claimant, employed by the respondent as a store keeper from 8th January 2004, was terminated in 2013 after some five film plates were stolen from the respondent's stores. He asserted he was exonerated by police investigations, was asked to explain the break-in by a letter dated 11th April 2013, and was then issued with a redundancy letter on 4th June 2013, with terminal dues paid less Kshs.106,164 retained as the cost of the lost film plates. The respondent maintained the claimant, being in charge of the stores, was culpable after a disciplinary process, and that a parallel redundancy process justified the termination. Counsel for the respondent argued that the police criminal process differed from the employer's administrative process. The court found the case peculiar: an employer who had decided on termination for gross misconduct instead declared the employee redundant. It held there were no justifiable reasons for the termination - no internal investigation report or independent evidence placed blame on the claimant, and his exoneration by police, with his junior prosecuted, demanded independent internal evidence of blame. Applying section 2 of the Employment Act, the court held redundancy requires loss of employment through no fault of the employee, so a termination grounded on alleged negligence could not be redundancy, and the conversion was unprocedural. The court awarded one month's pay in lieu of notice (Kshs.36,374) and ten months' salary as compensation for unfair dismissal (Kshs.363,740), ordered release of the retained Kshs.106,164, and awarded the claimant costs.

Key legal issues

#
01

Whether the termination of the claimant's services was for justifiable reasons

Holding

There were no justifiable reasons for the termination; mere occurrence of theft in the area under the claimant's charge, without an internal investigation report or evidence placing blame on him, cannot justify termination.

Reasoning

The court noted the respondent's case rested solely on the fact that theft occurred where the claimant was in charge. No evidence was adduced on when the theft occurred or whether the claimant could have prevented it. No internal investigation report was produced showing blameworthiness, and the claimant had been exonerated by police while his junior was prosecuted.

p. 2
02

Whether the termination on grounds of redundancy was lawful

Holding

The conversion of a termination for negligence/gross misconduct into redundancy was unprocedural and unlawful, since redundancy requires loss of employment through no fault of the employee.

Reasoning

Under section 2 of the Employment Act redundancy is loss of employment by involuntary means through no fault of the employee. The claimant's loss of employment was attributed to his own alleged fault (failure to prevent theft), so it could not be redundancy. The respondent also did not show the redundancy was sanctioned as alleged.

p. 2
03

Whether the respondent was entitled to withhold Kshs.106,164 as the cost of the lost film plates

Holding

No; the amount was to be released to the claimant as there was no evidence assigning the value of the lost items to the amount retained, nor sufficient evidence the claimant was entirely to blame, and the items were insured.

Reasoning

The court found the retention unjustified because no valuation evidence linked the loss to the sum retained and blame on the claimant was not reasonably established. The respondent's statement that the items were insured further undermined the deduction.

p. 2

Legal principles established

#
  • Redundancy is termination through no fault of the employee; where loss of employment results from the employee's own fault, it cannot be redundancy.
  • An employer cannot convert a termination for gross misconduct into a redundancy; exoneration by police calls for independent internal evidence of blame before terminating an employee.

Court orders

#
  1. 1.Payment of one month's pay in lieu of notice of Kshs.36,374.00
  2. 2.Payment of 10 months' salary as compensation for unfair dismissal of Kshs.363,740.00
  3. 3.Release to the claimant of the Kshs.106,164 retained on account of the lost film plates
  4. 4.Claimant to be paid the sum of Kshs.400,114/= on account of unlawful dismissal and unfair termination of services
  5. 5.Claimant to have costs of the suit

Authorities

#

Legislation

  • Employment Actsection 2 (definition of redundancy)
Jurisdiction invoked
Employment and labour relations jurisdiction (Employment Act, 2007); specific provision not stated in judgment

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Johnstone Mwendwa v KUL Graphics Limited [2015] KEELRC 182 (KLR)", Case Analysis (2015). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/182/eng@2015-11-06

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