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ELRCPartially AllowedCause No. 1 of 2013· [2016] KEELRC 761 (KLR)

Kennedy Shilaho Shibeka v Chairman, Board of Governor, Sigalagala Technical Training Institute [2016] KEELRC 761 (KLR)

Employment & Labour Relations Court
21 July 2016
3,978 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 a bursar's dismissal was unfair because the institution never gave him a hearing, and ordered compensation plus leave, overtime and notice pay.

What this practically means

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Executive summary

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The Claimant, formerly Institute Bursar of Sigalagala Technical Training Institute, was suspended on 15th August 2012 and dismissed on 16th October 2012 on grounds that he was a prime suspect in a theft of vehicle parts, failed to give a satisfactory explanation, authorised a former suspended driver's vehicle into the compound, and had an improper association with that driver. He claimed wrongful dismissal, seeking reinstatement or damages, leave pay, overtime, off day pay, severance and notice. The Respondent maintained the dismissal was lawful under section 44 of the Employment Act and fair under section 45(2), relying on four authorities cited by its counsel. The court found that the Claimant was never informed of charges, never summoned to a disciplinary hearing, and never issued a show cause letter; the meetings of 14th August and 5th October 2012 did not constitute disciplinary hearings. The Respondent's own witness conceded under cross-examination that nothing was wrong with allowing the driver into the compound and that no evidence linked the Claimant to the theft. The court declared the dismissal unfair both procedurally and substantively. On remedies, reinstatement was abandoned at hearing. The court awarded compensation of seven months' gross salary (Shs.266,595), annual leave of Shs.133,297.50, overtime and off day pay of Shs.110,916, public holiday pay of Shs.23,463, and one month's salary in lieu of notice (Shs.38,085). Severance pay was refused as it applies only to redundancy; gratuity and salary to date of submissions were refused as never pleaded. The Respondent was ordered to pay costs and interest from the date of judgment.

Key legal issues

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01

Procedural fairness under section 41 of the Employment Act

Holding

The dismissal was procedurally unfair because the Claimant was never informed of charges, never called to a disciplinary hearing and never given a show cause letter

Reasoning

The court found that the meetings of 14th August and 5th October 2012 did not involve the Claimant; he was merely called to a meeting about a theft and asked if he had information. He was suspended on grounds he was never asked about, and never responded to any charges. Section 41 requires explanation of reasons and hearing of representations before termination on grounds of misconduct.

p. 5
02

Substantive validity of grounds for dismissal

Holding

The Respondent failed to prove valid reasons for dismissal; the dismissal was substantively unfair

Reasoning

The Respondent's own witness conceded under cross-examination that there was nothing wrong with allowing the driver (still an employee) into the compound, that he was unaware of any evidence linking the Claimant to the theft, and that there was nothing wrong with the Claimant's association with the former driver. The grounds in the dismissal letter were thus not valid.

p. 7
03

Employer's record-keeping duty and burden of proof on leave, overtime and rest days

Holding

The Claimant's uncontroverted claims on leave, overtime and rest days were admitted because the employer failed to produce records

Reasoning

Sections 10 and 74 of the Employment Act require employers to keep written employment records, including leave entitlement, for five years after termination. The Respondent's witness could not controvert the Claimant's evidence as he lacked the records; under section 10(7) the burden then falls on the employer.

p. 8

Legal principles established

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  • An employer must explain reasons for contemplated termination to the employee in the presence of a fellow employee or shop steward and listen to representations before terminating
  • Where an employer fails to produce employment records, the burden of proving or disproving an alleged term of employment falls on the employer
  • Overtime rates: one and one-half times the normal hourly rate for excess hours and twice the rate for rest days and public holidays

Court orders

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  1. 1.Compensation of 7 months gross salary, Shs.266,595
  2. 2.Annual leave award of Shs.133,297.50 for 105 days
  3. 3.Overtime and off day pay of Shs.110,916 for one rest day per week at double rate for 52 weeks (12 months)
  4. 4.Public holiday pay of Shs.23,463 for 11 public holidays at double daily rate
  5. 5.One month's gross salary of Shs.38,085 in lieu of notice
  6. 6.Claim for severance pay dismissed
  7. 7.Respondent to pay Claimant's costs; interest on decretal sum from date of judgment

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 44
  • Employment Actsection 45(2)
  • Employment Actsection 49
  • Employment Actsections 10 and 74
  • Regulation of Wages and Conditions of Employment (General) OrderRule 6

Cases cited (4)

  • Concut Pty Ltd versus Worrell
    [2000] HCA 64
  • National Union of Mineworkers and Another and the Commission for Conciliation Mediation and Arbitration
    case No. JR 2512 of 2007
  • JUDY NJOKI v DHL EXCEL SUPPLY CHAIN (K) LTD
    [2012] eKLR
  • Dede Esi Annie Amanor-Wilks v. Actionaid International
    [2014] eKLR
Jurisdiction invoked
Employment and labour relations jurisdiction (Employment Act, sections 41, 44, 45, 49)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Kennedy Shilaho Shibeka v Chairman, Board of Governor, Sigalagala Technical Training Institute [2016] KEELRC 761 (KLR)", Case Analysis (2016). Cause No. 1 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/761/eng@2016-07-21

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