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ELRCDismissedCause No. 29 of 2009 (memorandum of claim filed 29th July 2009)· [2016] KEELRC 1231 (KLR)

Bakery, Confectionary, Food Manufacturing & Allied Workers Union v The Wrigleys Co. (E.A) Limited [2016] KEELRC 1231 (KLR)

Employment and Labour Relations Court
31 March 2016
3,299 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Claimant, a trade union, sued on behalf of two Grievants, Stanley Nyoike and William Oyugi, merchandisers dismissed by the Respondent on 16th June 2006 for presenting allegedly fictitious medical receipts from Digore Medical Clinic for reimbursement of family members' treatment. The union sought a declaration that the summary dismissal was contrary to clause 6(g) of the CBA, expungement of the dismissal letters, reinstatement without loss of benefits, and payment of pecuniary loss. The Respondent maintained that investigations established the receipts and medical records were fictitious, that the Grievants were issued show cause letters and gave unsatisfactory responses, and that the dismissals were justified as criminal conduct against the employer. The matter, first heard by Chemmuttut J, was ordered to commence de novo in November 2014. The court framed three issues: the applicable law, whether the dismissal was wrongful, and remedies. It held that the repealed Employment Act, Cap 226 governed the dismissals, which required only notice or payment in lieu without a hearing, and that the Employment Act, 2007 did not apply retroactively. On the evidence, the Respondent had reasonable and sufficient grounds to suspect the Grievants of criminal offences under section 17 of the repealed Act, and the investigator's and conciliator's findings confirming termination could not be faulted. Reinstatement therefore did not arise, and the uncontested terminal dues had been paid. The entire claim was dismissed with each party bearing their own costs, given the age of the matter and the de novo hearing.

Key legal issues

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01

Applicable law where dismissal preceded the Employment Act, 2007

Holding

The repealed Employment Act, Cap 226 governed the dismissal; the 2007 Act applies only to filing timelines and does not apply retroactively.

Reasoning

The dismissal occurred on 16th June 2006, before the Employment Act, 2007 came into force. The repealed Act required only adherence to contract terms or notice/pay in lieu, with no right to a hearing or reasons. The Trade Disputes Act allowed referral to the court; since the referral occurred after the 2007 Act commenced, the claimant could only benefit from the time within which to file, not from the substantive provisions of the new Act.

p. 5
02

Whether the summary dismissal of the Grievants was wrongful

Holding

The dismissal was justified: the Respondent had reasonable and sufficient grounds to suspect fictitious medical reimbursement claims, a criminal offence against the employer under clause 6(g) of the CBA and section 17 of the repealed Act.

Reasoning

Investigations established that the receipts and medical documents presented for reimbursement of family members' treatment at Digore Medical Clinic were fictitious: the clinic denied issuing them, denied charging consultation fees and had no record of the alleged staff or patients. Show cause letters were issued and responses considered unsatisfactory. The law then required only reasonable suspicion; the investigator and conciliator also confirmed the termination, and the court could not fault those findings.

p. 6
03

Whether any remedies were due

Holding

No remedies were due: reinstatement did not arise and all terminal dues had been paid and were uncontested.

Reasoning

Since termination was found lawful, reinstatement could not issue. The Respondent paid the Grievants wages in lieu of notice, for days worked and accrued leave. These dues were not contested, and the court found nothing else arose from the claim.

p. 6

Legal principles established

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  • Where a dismissal occurs before the Employment Act, 2007 came into force, the repealed Employment Act (Cap 226) applies and the 2007 Act does not act retroactively; the Claimant only benefits from the time limits for filing the claim.
  • Under section 17 of the repealed Employment Act, an employer could summarily dismiss an employee on reasonable and sufficient grounds of suspicion that the employee committed a criminal offence against the employer or its property, without a hearing or reasons.

Court orders

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  1. 1.The entire claim is dismissed for lack of merit
  2. 2.Each party to bear their own costs

Authorities

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Legislation

  • Employment Act, Cap 226 (repealed)Section 17
  • Employment Act, 2007
  • Trade Disputes Act (now repealed)

Cases cited (5)

  • Nicholas Otinyu Miruka versus Equity Bank Limited
    Cause No. 25 of 2013
  • Duncan Kariuki Kinyanjui versus Kenya Power & Lighting Company
    [2015] eKLR
  • James Nyaribo Versus PS Ministry of Public Works & Another
    [2014] eKLR
  • Shimeo Ayienda Ontita versus NAS Airport Service Ltd
    [2013] eKLR
  • George Wesonga Ojwang versus KNUT
    [2014] eKLR
Jurisdiction invoked
Reference of a trade dispute to the Court by the Minister under the Trade Disputes Act (now repealed)

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, "Bakery, Confectionary, Food Manufacturing & Allied Workers Union v The Wrigleys Co. (E.A) Limited [2016] KEELRC 1231 (KLR)", Case Analysis (2016). Cause No. 29 of 2009 (memorandum of claim filed 29th July 2009). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1231/eng@2016-03-31

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