Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedMemorandum of Claim dated 27th May, 2013· [2016] KEELRC 1633 (KLR)

William Kiaritha Gacheru v East African Packaging Industries Ltd [2016] KEELRC 1633 (KLR)

Employment and Labour Relations Court
26 February 2016
9,472 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~38 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled an employer cannot fire someone based only on a polygraph test without giving them a fair hearing first.

What this practically means

#

Executive summary

#
The claimant, formerly Technical Services Manager of the respondent since 1994, was terminated by letter dated 11th January 2013 after a polygraph examination of 19th December 2012, conducted following an attempted paper theft at the respondent's Nairobi factory on 1st December 2012, concluded he was 'definitely involved' in a paper-stealing cartel. He sued for damages for defamation, retraction of the polygraph report, an injunction, a declaration that his termination was illegal, and damages for unfair termination. The respondent, resisting the claim and counterclaiming for refund of the exit package, argued the test was voluntary, the dismissal justified under section 44(4)(g) of the Employment Act, terminal dues were fully paid with a no-claims clearance certificate, and that the court lacked jurisdiction over the defamation allegations. The court framed three issues: fairness of the polygraph-based termination, compensation despite the exit payment, and defamation. It held the polygraph test itself was voluntarily undertaken and within managerial discretion, but its result alone could not prove misconduct and, absent any disciplinary hearing as required by section 41(2), the termination was unfair in reason and procedure. The claimant was awarded four months' salary as compensation; no further terminal benefits were awarded since these had been handsomely paid, and the no-claims clause could not exclude statutory rights under sections 45 and 46. The defamation claim failed for want of defamatory publication and was dismissed. The counterclaim did not succeed. As the claimant was only partially successful, there was no order on costs.

Key legal issues

#
01

Lawfulness and fairness of termination based solely on a polygraph examination

Holding

The termination was unfair both in reason and procedure: the polygraph result alone could not prove guilt and no disciplinary hearing was held

Reasoning

The court accepted polygraph testing can show deception only and is not conclusive proof of guilt. The termination letter expressly relied on the polygraph result. Section 41(2) of the Employment Act requires the employer to hear and consider the employee's representations before termination, calling for some sort of hearing. No minutes or record of a disciplinary hearing existed, so reliance on the test alone and failure to afford a hearing rendered the termination unfair.

p. 13
02

Voluntariness and propriety of the polygraph examination

Holding

The polygraph test itself was properly undertaken; the claimant voluntarily consented and could have refused

Reasoning

The claimant signed a consent note stating he voluntarily agreed without threats or promises. Given his senior position and education as an engineer, he could not claim helplessness; he could have refused even at the pain of dismissal. Selecting employees for testing was a managerial discretion, and the court should be reluctant to interfere with managerial matters absent breach of statute or contract.

p. 13
03

Compensation despite payment of terminal dues and a no-claims clearance certificate

Holding

The claimant was awarded four months' salary as compensation for unfair dismissal; no further award of terminal benefits

Reasoning

Terminal benefits had been handsomely paid as if the claimant was retrenched, so no further award was due on that head. However, compensation for unfair termination is a distinct, compensatory award reflecting breach of fair process and natural justice, which cannot be excluded by agreement. Considering all circumstances and the respondent's conduct, four months' salary was awarded.

p. 14
04

Whether the polygraph report, the list and the emails were defamatory

Holding

No defamation was established; the claim was dismissed

Reasoning

Defamation under section 3 of the Defamation Act requires a publication without justification calculated to injure reputation, and there must be evidence of publication. The office notice selecting 28 employees was based on seniority and work area, not suspicion of particular individuals. The 18th February 2013 email was a reply to the claimant's own email and contained nothing injuring his reputation. Employer implications of theft in investigations cannot automatically amount to defamation.

p. 16
05

Effect of the finality clause in the clearance certificate

Holding

The no-claims clause did not bar the unfair termination claim

Reasoning

The certificate covered contractual and statutory dues, which are separate from compensatory awards for unfair termination. Rights under sections 45 and 46 of the Employment Act cannot be contracted out; doing so would amount to contracting out of a statute without express provision. The claimant therefore remained entitled to pursue compensation for unfair termination.

p. 14

Legal principles established

#
  • A polygraph test result alone cannot be conclusive proof of guilt of a crime or misconduct and cannot substitute a disciplinary hearing
  • Reliance on a polygraph result alone to terminate employment is unfair where no hearing or disciplinary process preceded termination
  • Statutory rights under sections 45 and 46 of the Employment Act cannot be contracted out by a finality clause in a clearance certificate
  • An allegation of involvement in theft leading to termination is tested at a lower standard of proof than a criminal prosecution, and an acquittal is no barrier to dismissal on the same facts
  • Defamation requires publication to a third party; inclusion of an employee in a list for testing on account of his position of responsibility is not defamatory

Court orders

#
  1. 1.The claim for defamation is dismissed
  2. 2.The claimant is awarded four months' salary as compensation for unfair termination of services
  3. 3.No order on costs

Authorities

#

Legislation

  • Employment Actsection 44(4)(g)
  • Employment Actsection 43
  • Employment Actsection 41(1), 41(2)
  • Employment Actsection 45, 46
  • Defamation Actsection 3
  • Evidence Act
  • Criminal Procedure Act
  • Constitution of KenyaArticles 22, 23, 48, 50

Cases cited (8)

  • DHL Supply Chain SA (PTY) Ltd and De Beer, LW N. O. and 3 Others
    case No. 0738/10
  • Food & Allied Workers Union on behalf of Kapesi and Others v Premier Foods Ltd t/a Blue Ribbon Staff River
  • SMT, Selvi & Orrs vs. State of Karnataka
    Criminal Appeal No. 1267 of 2004
  • National Union of Mineworkers and Another Versus Commission for Conciliation, Mediation, and Arbitration and two Others
    Case No. JR 2512/2007
  • Joseph Karanja Wainaina v National Bank of Kenya
    (2009) eKLR
  • Nation Media Group Ltd & 2 others v John Joseph Kamotho & 3 others
    (2010)
  • Kagwiria Mutwiri Kioga v The Standard Limited & 4 Others
    (2010) EKLR
  • Kudweli v. Eureka Educational and Training Consultants & 2 others
    (1993) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (6)

#

Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

#

Cite this brief

Caselaw, "William Kiaritha Gacheru v East African Packaging Industries Ltd [2016] KEELRC 1633 (KLR)", Case Analysis (2016). Memorandum of Claim dated 27th May, 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1633/eng@2016-02-26

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