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ELRCPartially Allowed· [2015] KEELRC 868 (KLR)

Alex Muthiora Koome v G4s Security Services Kenya Ltd [2015] KEELRC 868 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
13 March 2015
1,709 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled G4S unfairly dismissed a security guard without a hearing and ordered maximum compensation of 12 months' salary plus full terminal benefits.

What this practically means

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Executive summary

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The claimant, a security guard employed by the respondent since October 1999, was suspended in November 2011 after CCTV footage showed an intrusion at his post. Investigations cleared him, but he was transferred to Machakos branch. He appealed the transfer and requested retention in Nairobi; his appeal was rejected on 5th December 2011. He did not report to Machakos, saying he had no money for the transfer, and was dismissed on 9th December 2011 for absconding duty and failing to obey lawful instructions. He sued for a declaration that the dismissal was wrongful and unfair, terminal benefits of Kshs 192,281, a certificate of service, costs and interest. The court found the termination unfair both substantively and procedurally: the respondent admitted no disciplinary process or show-cause letter preceded the dismissal; the claimant's whereabouts were known so he did not abscond; and the respondent breached Clause 20 of the Regulation of Wages (Protective Security Services) Order 1998 on transfer costs, with no proof of the alleged relocation allowance. The court awarded one month's pay in lieu of notice (Kshs 14,870), wages for 9 days worked (Kshs 4,461), 6 months pro rata leave (Kshs 3,669), service gratuity of Kshs 60,941 for 12 years' service at 18 days per year, and maximum compensation of 12 months' gross salary (Kshs 178,448) under Section 49(1)(c) of the Employment Act. The respondent was directed to issue a certificate of service within 30 days, to pay the claimant's costs, and the decretal sum was to attract interest at court rates from the date of judgment. The claim thus substantially succeeded, though no declaration of nullity was granted.

Key legal issues

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01

Procedural fairness of the dismissal

Holding

Termination was procedurally unfair as the claimant was not given a hearing or show-cause letter before dismissal

Reasoning

RW1 admitted the claimant was not given a hearing because he was not available, and no letter to show cause was issued. The dismissal letter also did not specify the days of alleged abscondment. The employer's failure to follow fair procedure independently rendered the termination unfair regardless of the conduct alleged.

p. 2
02

Validity of the reason for dismissal (absconding and refusal to obey lawful instruction)

Holding

The reason was invalid: the claimant did not abscond and the transfer lacked compliance with the applicable wage order

Reasoning

Absconding means the employee's whereabouts are unknown, which was not the case as the claimant reported to the office. The employer failed to comply with Clause 20 of the Regulation of Wages (Protective Security Services) Order 1998 on transfer costs and allowances, and RW1 could not prove payment of relocation allowance as no records were produced.

p. 3
03

Burden of proof on leave entitlement

Holding

Respondent failed to disprove the claim for 6 months pro rata leave as it bore the burden for not keeping records

Reasoning

Sections 10(3), 10(6) and 10(7) of the Employment Act require employers to keep leave records for 5 years; failing that, the employer must disprove the employee's claim. The dismissal letter itself acknowledged leave earned but not taken would be paid, and RW1 could not explain the calculations.

p. 3
04

Entitlement to gratuity versus service pay

Holding

Claimant entitled to service gratuity at 18 days per year for 12 years despite NSSF contributions

Reasoning

The Regulation of Wages (Protective Security Services) Order provides gratuity for employees with over 5 years' service. Section 35(6) of the Employment Act confirms entitlement to gratuity notwithstanding NSSF contributions; the authority relied on by the respondent concerned service pay, not gratuity, and was inapplicable.

p. 3
05

Certificate of service

Holding

Respondent directed to issue the certificate within 30 days

Reasoning

Section 51 of the Employment Act is mandatory: an employer SHALL issue a certificate of service upon termination. The claimant's alleged failure to collect it does not relieve the employer of this statutory duty.

p. 3

Legal principles established

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  • Termination without a disciplinary process or an opportunity to explain is procedurally unfair
  • Where an employer fails to keep statutory leave records, the burden lies on the employer to disprove the employee's claim
  • Entitlement to gratuity under the Protective Security Services Order is not displaced by NSSF contributions
  • An employer is mandatorily required to issue a certificate of service on termination

Court orders

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  1. 1.Payment of one month's salary in lieu of notice of Kshs 14,870
  2. 2.Payment of Kshs 4,461 being wages and allowances for 9 days worked and not paid for
  3. 3.Payment of Kshs 3,669 for 6 months pro rata leave based on 26 leave days and basic pay
  4. 4.Payment of Kshs 60,941 as service gratuity based on basic salary
  5. 5.Compensation of 12 months' salary in the sum of Kshs 178,448 based on gross salary under Section 49(1)(c) of the Employment Act
  6. 6.Respondent to issue certificate of service to the claimant within 30 days from date of judgment
  7. 7.Respondent to pay claimant's costs of the suit
  8. 8.Decretal sum to attract interest at court rates from date of judgment

Authorities

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Legislation

  • Employment ActSection 51
  • Employment ActSection 49
  • Employment ActSection 49(1)(c)
  • Employment ActSection 35(6)
  • Employment ActSection 10(3)(a)(i)
  • Employment ActSection 10(6)
  • Employment ActSection 10(7)
  • Employment ActSection 74(1)(f)
  • Regulation of Wages (Protective Security Services) OrderClause 20

Cases cited (1)

  • Carolyne Chegero Vereso V Pan Africa Life Assurance Limited
Jurisdiction invoked
Employment and labour relations dispute under the Employment Act, 2007 (first-instance labour claim)

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, "Alex Muthiora Koome v G4s Security Services Kenya Ltd [2015] KEELRC 868 (KLR)", Case Analysis (2015). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/868/eng@2015-03-13

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