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ELRCPartially Allowed· [2015] KEELRC 217 (KLR)

Universities Non Teaching Staff Union v University of Nairobi [2015] KEELRC 217 (KLR)

Employment and Labour Relations Court
20 November 2015
2,645 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled the University of Nairobi unfairly fired a cashier, awarding him over Kshs 535,000 but not his old job back.

What this practically means

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Executive summary

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The grievant, an Accounts Assistant and cashier in the University of Nairobi's Finance Department, was suspended without pay in June 2006 following an internal audit that revealed under-banking of Kshs 14,150 and non-banking of Kshs 48,136, and was terminated on 13th October 2006 after a disciplinary committee found his conduct scandalous and surcharged him Kshs 62,280. The Claimant Union asserted that the grievant was denied union representation contrary to the CBA and section 41 of the Employment Act, that no witnesses were called, that the auditor who authored the charges sat on the committee, and that the suspension terms breached the CBA. The court framed three issues: valid reason, fair procedure and remedies. On the evidence, the court found the grievant shared responsibility for the anomalies with his supervisor and assistant, that the credibility of the audit findings was doubtful owing to animosity between the grievant and the auditor, and that the surcharge and termination amounted to double jeopardy, especially since a colleague had irregularly banked funds in the grievant's name. The Respondent failed to establish a valid reason under sections 43(1) and 47(5), and the procedure was deficient under section 41 and the CBA, rendering the termination unfair under section 45. Reinstatement was refused because over three years had elapsed and trust had diminished in a position of utmost trust. The court awarded maximum compensation of 12 months' salary (Kshs 308,320), notice pay, suspension-period salary arrears and refund of the surcharge, totalling Kshs 535,901.88, with interest at court rates and costs to the grievant.

Key legal issues

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01

Valid reason for termination

Holding

The Respondent failed to prove the under-banking and non-banking of funds were attributable to the grievant to the exclusion of his supervisor and assistant; no valid reason was established under sections 43(1) and 47(5) of the Employment Act

Reasoning

The grievant shared responsibility for cash handling with his supervisor and subordinate. The audit findings rested solely on RW1, whose credibility was doubted owing to animosity between her and the grievant. A colleague irregularly banked funds in the grievant's name without authority, and surcharging the grievant without sound basis, followed by termination, amounted to double jeopardy.

p. 4
02

Fair procedure

Holding

Although the grievant was heard, the procedure was deficient: no witnesses were called, the internal auditor who authored the charges sat on the committee, the grievant was denied union representation contrary to the CBA and section 41, and suspension without pay breached the CBA

Reasoning

The CBA in force before termination entitled the grievant to union representation and half-pay suspension. Denial of representation violated section 41 of the Employment Act. The auditor who unearthed the shortage sat on the disciplinary committee instead of testifying, casting doubt on the fairness of the hearing.

p. 4
03

Remedies

Holding

Reinstatement refused given lapse of time and diminished trust in a position of utmost trust; maximum compensation of 12 months' salary awarded under section 49(1)(c) as read with 49(4), together with notice pay, salary arrears for the suspension period and refund of the surcharge

Reasoning

Eleven years had elapsed since termination, the Respondent's structure may have changed, and the grievant held a position of utmost trust. Although the termination was wrongful, reinstatement was impractical. The grievant lost his livelihood prematurely, was not paid terminal benefits and was suspended without pay, justifying maximum compensation of 12 months' salary.

p. 5

Legal principles established

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  • An employer must demonstrate on a balance of probability that the misconduct constituting the reason for termination was attributable to the employee, per sections 43(1) and 47(5) of the Employment Act, 2007
  • An employee must be allowed to be accompanied at a disciplinary hearing by a fellow employee of choice or a union representative as required by section 41 of the Employment Act and the CBA
  • Suspension on terms inconsistent with the CBA (unpaid rather than half pay beyond 30 days) renders the procedure unfair
  • Reinstatement is not available after expiry of three years from termination under the Employment and Labour Relations Act, 2011

Court orders

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  1. 1.Reinstatement denied
  2. 2.Compensation of 12 months' gross salary for wrongful and unfair termination in the sum of Kshs 308,320
  3. 3.One month salary in lieu of notice in the sum of Kshs 25,693.35
  4. 4.Salary arrears for the suspension period (13th June 2006 to 27th November 2006) in the sum of Kshs 139,600.50
  5. 5.Refund of wrongful surcharge in the sum of Kshs 62,288.00
  6. 6.Total award of Kshs 535,901.88 with interest at court rates from the date of filing suit till payment in full
  7. 7.Respondent to pay the costs of the suit
Jurisdiction invoked
Employment and Labour Relations Act, 2011; dispute reported to the Minister of Labour with certificate of unresolved dispute issued

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, "Universities Non Teaching Staff Union v University of Nairobi [2015] KEELRC 217 (KLR)", Case Analysis (2015). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/217/eng@2015-11-20

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