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ELRCPartially AllowedCause No. 44 of 2015· [2016] KEELRC 573 (KLR)

Nyangenya Hezron Nyakeremba, Situma Elvin & Ontiri James v Xfor Security Solutions (Cause 44 of 2015) [2016] KEELRC 573 (KLR)

Employment and Labour Relations Court of Kenya at Mombasa
23 September 2016
2,163 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 that an employer cannot dismiss workers for an offence already punished with a final warning, awarding three guards over Kshs. 509,000.

What this practically means

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Executive summary

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Three security guards employed by Xfor Security Solutions in 2012 were summarily dismissed on 31st August 2013 after being found asleep on duty on the night of 16th/17th August 2013. They denied sleeping on duty, contending they were compelled to write apology letters, and claimed notice pay, annual leave pay, service pay, public holiday pay, uniform deductions refund and 12 months' salary as compensation, totalling Kshs. 697,424. The Respondent conceded the employment relationship but justified the dismissal on the grounds of sleeping on duty, asserting the Claimants were heard, apologised, received final dues, and that leave and holiday pay were folded into monthly salaries. The Court found the Claimants had acknowledged the offence in apology letters and accepted final Warning Orders on 17th August 2013. Having been punished once through the severest warning, the Claimants could not lawfully be dismissed for the same offence two weeks later absent fresh infringements; the dismissal therefore lacked substantive justification under Sections 43 and 45 of the Employment Act. Further, no hearing took place before the 30th August 2013 dismissal, breaching Section 41's minimum procedural standards. The Court awarded each Claimant 9 months' gross salary as compensation, one month's notice pay, annual leave pay and service pay, totalling Kshs. 509,104. Claims for public holiday pay and uniform refunds failed for want of particulars and supporting documents. A Certificate of Service was ordered for the 1st Claimant, with costs and 14% interest from the date of the Award.

Key legal issues

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01

Substantive justification for summary dismissal

Holding

The summary dismissal was not substantively justifiable because the earlier offence of sleeping on duty had already been punished through final Warning Orders, and there was no allegation of further infringements

Reasoning

The Claimants were found asleep on 16th August 2013, wrote apology letters and were issued final written warnings on 17th August 2013, which they accepted. They worked from 17th to 30th August 2013 with no fresh infringement alleged. The dismissal letter merely revisited the same offence, imposing punishment twice. Under Sections 43 and 45 of the Employment Act, the Respondent therefore had no valid reason for the summary dismissal.

p. 3
02

Procedural fairness before dismissal

Holding

Termination was procedurally unfair as no hearing took place before the decision to dismiss on 30th August 2013

Reasoning

The letters of summary dismissal did not show the Claimants were heard before the 30th August 2013 decision; they merely repeated the earlier allegation. The allegations of difficulty in assigning the Claimants to customers did not constitute fresh infringements. The minimum standards of fairness under Sections 41 and 45 of the Employment Act were thus not met, though the procedure leading to the earlier Warning Orders did not need examination since those Orders issued and were accepted.

p. 4
03

Annual leave pay

Holding

Claim for annual leave pay granted as prayed because the Respondent failed to produce evidence that leave was paid off monthly

Reasoning

The Respondent asserted annual leave pay was included in monthly salary, but produced no contractual or legal clauses, pay slips or records showing payment of such an item or utilisation of leave in that mode. It was not denied the Claimants never went on annual leave. In the absence of documentary evidence of payment, the claim succeeded as prayed.

p. 4
04

Service pay

Holding

Claimants entitled to service pay under Section 35(5) of the Employment Act

Reasoning

The Respondent offered no documentary evidence that the Claimants were registered with the N.S.S.F - no Statements of Accounts or Pay Slips - and the salary breakdown particulars showed no N.S.S.F deductions. The Court was therefore persuaded the Claimants were entitled to service pay, granted as prayed.

p. 4

Legal principles established

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  • An employee already punished for an offence through a final warning cannot be summarily dismissed for the same offence absent fresh infringements - doing so lacks substantive justification under Sections 43 and 45 of the Employment Act
  • Dismissing an employee without a hearing between the warning and the dismissal breaches the minimum procedural fairness standards of Section 41 of the Employment Act

Court orders

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  1. 1.Declaration that termination was unfair
  2. 2.1st Claimant to be paid Kshs. 179,427 (compensation of 9 months' salary Kshs. 135,000; notice pay Kshs. 15,000; annual leave pay Kshs. 17,310; service pay Kshs. 12,117)
  3. 3.2nd Claimant to be paid Kshs. 189,811 (compensation Kshs. 135,000; notice pay Kshs. 15,000; annual leave pay Kshs. 14,425; service pay Kshs. 10,386)
  4. 4.3rd Claimant to be paid Kshs. 139,860 (compensation Kshs. 108,000; notice pay Kshs. 12,000; annual leave pay Kshs. 11,550; service pay Kshs. 8,316)
  5. 5.Respondent to pay Claimants a total of Kshs. 509,104 in terminal benefits and compensation
  6. 6.Certificate of Service to be released to the 1st Claimant
  7. 7.Costs to the Claimants
  8. 8.Interest at 14% per annum from the date of the Award

Authorities

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Legislation

  • Employment ActSections 41, 43, 45, 35(5)
  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010, Rule 27(1)(a) - dispute over unfair and unlawful termination

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, "Nyangenya Hezron Nyakeremba, Situma Elvin & Ontiri James v Xfor Security Solutions (Cause 44 of 2015) [2016] KEELRC 573 (KLR)", Case Analysis (2016). Cause No. 44 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/573/eng@2016-09-23

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