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ELRCPartially AllowedNot stated in judgment· [2015] KEELRC 687 (KLR)

Caroline Wangechi Wanjohi v Avenue Healthcare [2015] KEELRC 687 (KLR)

Industrial Court (Employment and Labour Relations Court)
18 June 2015
3,219 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled an employee's dismissal unfair because she wasn't given a hearing, even though the theft allegations may have been genuine.

What this practically means

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Executive summary

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The Claimant sued her former employer alleging summary dismissal on 29th March 2011 following allegations that she had stolen items (dishwashing paste, tissue and other partly used goods) from the Respondent's premises. She claimed notice pay, leave pay, service pay totalling Kshs. 721,000/-, a declaration that the termination was unlawful, and general damages. The Respondent defended the suit, asserting the dismissal was for gross misconduct after the Claimant failed to produce receipts for items found in her vehicle during a routine security check on 26th March 2011, and counterclaimed for Kshs. 35,667/- (Kshs. 35,367/- per the evidence) in medical expenses not covered by its medical scheme. The court found that although there was possibly a reason for termination, Section 41 of the Employment Act required procedural fairness: the Claimant was entitled to be advised that dismissal was contemplated and to be accorded a hearing, which was not done. The dismissal was therefore held unfair and three months' compensation of Kshs. 112,080/- was awarded. No award was made for notice pay, leave pay, service pay or general damages. Judgment was entered for the Respondent on the counterclaim for Kshs. 35,367/-, which the Claimant had no defence to. The sums were netted off, leaving the Claimant to receive Kshs. 76,713/-. Each party was ordered to bear its own costs.

Key legal issues

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01

Procedural fairness in summary dismissal for gross misconduct

Holding

The dismissal was unfair because the Claimant was not accorded the hearing contemplated by Section 41 of the Employment Act

Reasoning

Although the Respondent may have had a reason for termination arising from the alleged theft and failure to produce receipts, the court held that Section 41 required some degree of procedural fairness. The Claimant was entitled to be advised that the Respondent was contemplating dismissal and to be accorded a hearing before the decision to terminate was made. This was not done.

p. 5
02

Respondent's counterclaim for medical expenses

Holding

Judgment entered for the Respondent on the counterclaim for Kshs. 35,367/-, which the Claimant had no defence to

Reasoning

The Claimant admitted in cross-examination that she could recall owing a medical bill, and the Respondent's final dues calculation was referred to showing sums owed. The court found the Claimant was indebted to the Respondent for the medical cover and mounted no defence to the counterclaim.

p. 5

Legal principles established

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  • Even where there is a valid reason for termination, Section 41 of the Employment Act requires procedural fairness, including being advised that dismissal is contemplated and accorded a hearing

Court orders

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  1. 1.A declaration/finding that the Claimant's dismissal was unfair
  2. 2.Award of three months' compensation amounting to Kshs. 112,080/-
  3. 3.No award for the other claims made (notice pay, leave pay, service pay, general damages)
  4. 4.Judgment entered for the Respondent on the counterclaim for Kshs. 35,367/- for medical cover
  5. 5.Net off-set of the counterclaimed sum against compensation, leaving the Claimant to receive Kshs. 76,713/-
  6. 6.Each party to bear their own costs

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 42(1)
  • Employment ActSection 45(2)(c)

Cases cited (2)

  • Nicholas Otinyu Murukla v Equity Bank Limited
    [2013] eKLR
  • Polkey v A.E Dayton Services Limited (Formerly Edmunds Walker Holdings Limited)
    [1987] UKHL
Jurisdiction invoked
Original employment and labour relations jurisdiction; suit filed in the Industrial Court on 28th September 2011

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, "Caroline Wangechi Wanjohi v Avenue Healthcare [2015] KEELRC 687 (KLR)", Case Analysis (2015). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/687/eng@2015-06-18

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