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ELRCPartially AllowedCause No. 2490 of 2012· [2016] KEELRC 597 (KLR)

Kenya Shoe & Leather Workers Union v HR Strategic Partners Ltd [2016] KEELRC 597 (KLR)

Employment and Labour Relations Court of Kenya
19 July 2016
2,124 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 even suspected thieves at work must get a hearing before summary dismissal, or the dismissal is unfair.

What this practically means

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Executive summary

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The Claimant union sued on behalf of its Grievant, Leonard Okoth, a general labourer deployed to work at Bata Shoe Company through the Respondent labour outsourcing firm, claiming he was wrongfully and unfairly terminated. The Grievant was implicated in the theft of 120 safari boots soles in September 2011, directed to keep off the workplace pending investigations, and was summarily dismissed in October 2011 without a hearing. The Respondent defended the dismissal as lawful under sections 43, 44 and 45 of the Employment Act, arguing the Grievant defied a lawful instruction to keep off premises and thereby committed gross misconduct justifying summary dismissal. The court held that while section 44 permits summary dismissal, the right is regulated by the mandatory hearing requirement of section 41(2). The employer bore the burden of establishing exceptional circumstances preventing a hearing; since the Respondent successfully communicated with the Grievant when it needed his attendance, no such circumstances existed. Following Shankar Saklani v DHL Global Forwarding and Kenneth Gichuru, the court found the summary dismissal procedurally unfair under section 45. Compensation was tempered to three months' salary (Kshs.30,108.00) because the Grievant did not dispute that the soles went missing while he was on duty. Notice pay of Kshs.10,036.00 was awarded. Gratuity was refused as no collective agreement provided for it and statutory dues were paid. The overtime claim was declined as an incentive had been paid. The court ordered an unconditional certificate of service and awarded costs to the Claimant.

Key legal issues

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01

Procedural fairness of summary dismissal

Holding

The summary dismissal was unfair because the Grievant was given neither notice nor hearing despite the employer being able to communicate with him

Reasoning

Section 44 permits summary dismissal but the right is regulated by section 41(2), which requires the employer to hear the employee's representations before dismissal. The Respondent alleged the Grievant sneaked back to premises during investigations, but when communication was issued he duly complied, showing the employer could reach him. No exceptional circumstances excusing non-compliance were set out, so the mandatory hearing provisions were breached and the dismissal was unfair under section 45.

p. 3
02

Burden of justifying exceptional circumstances for no hearing

Holding

The employer bears the burden of establishing exceptional circumstances preventing a pre-dismissal hearing

Reasoning

The court held that where an employer claims it could not hear the employee before summary dismissal, those circumstances must be clearly set out by the employer. The Respondent's allegation of sneaking back to the premises did not suffice because it later communicated with the Grievant successfully, demonstrating no practical impediment to a hearing existed.

p. 3
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Remedies for unfair termination

Holding

Compensation of three months' salary awarded, reduced because the Grievant was under suspension for suspected gross misconduct; notice pay awarded as procedures were not followed

Reasoning

Having found unfair termination, the court awarded compensation but tempered it to three months' salary given that the Grievant did not contest that 120 safari boots soles went missing while he was on duty, and only relied on the absence of a criminal charge. Notice pay followed from the failure to adhere to lawful termination procedures.

p. 4

Legal principles established

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  • The right to summarily dismiss under section 44 is regulated by the mandatory hearing requirement of section 41(2), and failure to hear the employee renders summary dismissal unfair under section 45
  • Where an employer is unable to hear the employee before summary dismissal, the exceptional circumstances must be clearly set out by the employer
  • A certificate of service is a statutory right that must be issued as of right and not await litigation

Court orders

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  1. 1.Declaration that the termination of the Grievant by the Respondent was procedurally unfair
  2. 2.Compensation awarded at Kshs.30,108.00
  3. 3.Notice pay of Kshs.10,036.00
  4. 4.Certificate of Service to be issued unconditionally
  5. 5.Costs of the suit to the Claimant

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 41(2)
  • Employment Actsection 43
  • Employment Actsection 44
  • Employment Actsection 44(3)
  • Employment Actsection 45
  • Employment Actsection 35
  • Employment Actsection 51
  • Constitution of Kenyaarticle 41
  • Constitution of Kenyaarticle 47

Cases cited (2)

  • Shankar Saklani versus DHL Global Forwarding (K) Ltd
    [2012] eKLR
  • Kenneth Gichuru versus BOG St. Teresa Girls Secondary School
    Cause no.1329 of 2011
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act over unfair termination of employment

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, "Kenya Shoe & Leather Workers Union v HR Strategic Partners Ltd [2016] KEELRC 597 (KLR)", Case Analysis (2016). Cause No. 2490 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/597/eng@2016-07-19

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