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ELRCPartially AllowedMemorandum of Claim filed 17 March 2014 (Cause)· [2015] KEELRC 1416 (KLR)

Thomas Barkasiam Miningwo v Egerton University [2015] KEELRC 1416 (KLR)

Employment and Labour Relations Court
27 February 2015
2,150 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 upheld a university employee's dismissal for losing money, but ruled his unpaid suspension was unlawful and awarded him salary, leave and arrears.

What this practically means

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Executive summary

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The Claimant, confirmed as a Senior Accounts Assistant at Egerton University in 1998, was suspended on 11 May 2012 over a loss of Kshs 249,699/- and, after disciplinary hearings on 23 October and 13 November 2012, was summarily dismissed for gross misconduct. He sued for unfair termination, reinstatement, leave allowance, unpaid claims, salary and pension arrears and severance pay. The Court identified three issues: whether the dismissal was unfair, the effect of his acquittal in a criminal trial for theft by servant, and appropriate remedies. On procedure, the Court held the Respondent complied with section 41 of the Employment Act, 2007: the Claimant was informed of the allegations, responded, attended hearings with union representation, and the change in Disciplinary Committee composition caused no prejudice. On substance, the employer proved valid and fair reasons under sections 43 and 45; the Claimant was negligent in handling money entrusted to him, having handed cash to a casual employee without written acknowledgment, and as a senior manager the buck stopped with him. The Court held that acquittal in a criminal trial, which carries a higher standard of proof, cannot without more render a dismissal unfair. The unfair termination claim was dismissed, and reinstatement, compensation, severance/service pay, pay in lieu of notice, pension remittances, unpaid claims and overtime all failed. However, the Court awarded contractual/statutory benefits independent of dismissal: cash for 245 accrued leave days, admitted CBA salary arrears of Kshs 18,147/-, and basic pay during suspension, the Respondent lacking authority to suspend without pay. Costs were awarded to the Claimant at 50% of the applicable scale.

Key legal issues

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01

Procedural fairness under section 41

Holding

The Respondent complied with section 41; the Claimant was informed of the allegations, given a chance to respond, and afforded disciplinary hearings with union representation

Reasoning

The suspension letter of 11 May 2012 set out the allegations and required a response within 7 days. Invitation letters preceded hearings on 23 October and 13 November 2012, at which the Claimant made representations, with union representatives present. Minutes confirmed the hearings. A change in the Disciplinary Committee's composition caused no demonstrated prejudice, only three or four of twelve members being absent.

p. 2
02

Substantive fairness under sections 43 and 45

Holding

The Respondent proved the reasons for dismissal (gross misconduct leading to loss of Kshs 249,699/-) and they were valid and fair

Reasoning

The employer bears the burden of proving reasons under section 43 and their validity under section 45. The Claimant admitted receipt of the money and its loss; he was negligent in handling money entrusted to him, handing it over without written acknowledgment. As a senior manager, responsibility rested with him. The Respondent's witness confirmed proper systems and practice of signing for money.

p. 3
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Effect of acquittal in criminal case

Holding

Acquittal cannot found a claim for unfair termination; the standard and purposes of criminal trials differ from disciplinary proceedings

Reasoning

The standard of proof in criminal cases is higher than in employment disputes, and criminal trials serve different purposes from workplace disciplinary proceedings. An acquittal does not automatically make a dismissal unfair, and a criminal prosecution does not require the suspension of a disciplinary hearing. The Claimant's acquittal of theft by servant therefore could not assist his case.

p. 4
04

Suspension without pay

Holding

The Respondent had no contractual or statutory authority to suspend without pay; basic pay for the suspension period awarded

Reasoning

At common law, suspension without pay breaches the contract absent express contractual or statutory authority. The Respondent produced no such authority, and no collective bargaining agreement was produced to justify it. The Court awarded pay for the suspension period based on basic salary, the Claimant having received house and medical allowances during suspension.

p. 4

Legal principles established

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  • Section 41 of the Employment Act, 2007 makes a hearing before termination mandatory where the reason is misconduct, poor performance or incapacity
  • An employer cannot terminate without valid and fair reasons even where the contract allows termination on notice
  • Acquittal in a criminal trial does not, without more, render a dismissal unfair; criminal and disciplinary proceedings are governed by different legal principles
  • Suspension without pay is unlawful absent express contractual or statutory authority

Court orders

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  1. 1.The claim based on unfair termination/wrongful dismissal is dismissed
  2. 2.The Respondent to compute and pay the Claimant 245 days leave in cash
  3. 3.The Respondent to compute and pay the Claimant salary arrears arising out of Collective Bargaining Agreement (admitted sum of Kshs 18,147/-)
  4. 4.The Respondent to compute and pay the Claimant unpaid salary during suspension (basic pay)
  5. 5.Costs awarded to the Claimant at 50% of the applicable scale

Authorities

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Legislation

  • Employment Act, 2007Section 44(4) clauses (c) and (g)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 35
  • Penal CodeSection 281

Cases cited (1)

  • McKenzie v Smith
    (1976) IRLR 345
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (unfair termination claim)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (6)

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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, "Thomas Barkasiam Miningwo v Egerton University [2015] KEELRC 1416 (KLR)", Case Analysis (2015). Memorandum of Claim filed 17 March 2014 (Cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1416/eng@2015-02-27

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