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ELRCAllowedCause No 1049 of 2014· [2016] KEELRC 1753 (KLR)

Paul Makau Mututu v Nasib Industrial Products [2016] KEELRC 1753 (KLR)

Employment and Labour Relations Court
5 February 2016
1,030 words in judgment
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The bottom line

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What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Departmental Head from 14th May 2003 until 3rd February 2014 on a monthly salary of Kshs.16,400.00, sued for unlawful summary dismissal. He alleged that on 29th January 2014 he was questioned at the dispatch gate over a drum of standard thinner exceeding its limit; his colleague John Ndetei admitted overfilling the drum, yet both were arrested, detained at Industrial Area Police Station for two days and released without charge. On 3rd February 2014 the Claimant was issued a dismissal letter dated 29th January 2014 accusing him of planning to steal by filling a drum with 40 litres more of thinner, referencing a confession statement. The Respondent filed a Response asserting the Claimant colluded with others to steal products, but did not attend the hearing, and the claim was heard ex parte on 9th November 2015. The court framed two issues: whether the dismissal was justifiable and fair, and whether the Claimant was entitled to the remedies sought. Applying Sections 43 and 41 of the Employment Act, 2007, the court found no evidence led to prove the charges, the referenced confession was not produced, and no disciplinary process was undertaken. The dismissal was held substantively and procedurally unfair. The court awarded 12 months' salary compensation (Kshs.196,800.00), one month's notice pay (Kshs.16,400.00), January 2014 salary (Kshs.16,400.00), leave pay for 10 years (Kshs.114,800.00) and prorata leave for 8 months (Kshs.7,653.00), totalling Kshs.352,053.00, with costs and interest at court rates from the date of the award until payment in full.

Key legal issues

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01

Whether the summary dismissal was substantively justified

Holding

The Respondent failed to prove a valid reason for the termination; the alleged confession was not produced and no evidence supported the theft allegation.

Reasoning

The dismissal letter cited theft of 40 litres of standard thinner, denied by the Claimant in pleadings and testimony. Apart from averments in the Response, no evidence was led. The confession statement referenced in the dismissal letter was never made available to the Court. Under Section 43 of the Employment Act, the employer bears the burden of proving a valid reason, which it failed to discharge.

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02

Whether the dismissal was procedurally fair

Holding

The Respondent did not follow the mandatory disciplinary procedure under Section 41, rendering the dismissal procedurally unfair.

Reasoning

Section 41 of the Employment Act prescribes a mandatory disciplinary procedure in cases of summary dismissal. The Respondent made no attempt to take the Claimant through any disciplinary process before dismissing him. The Claimant was arrested and released without charge, then handed a dismissal letter without any hearing. The absence of such process compounded the substantive unfairness.

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03

Whether the Claimant was entitled to leave pay

Holding

The claim for leave pay succeeded because the Respondent, though absent, produced no leave records to contradict it.

Reasoning

The Respondent did not attend the hearing and did not produce any leave records to oppose the claim for leave for 10 years plus prorata leave for 8 months. In the absence of any contrary evidence, the court allowed the claim as pleaded, computing leave pay at the statutory formula based on the Claimant's monthly salary of Kshs.16,400.00.

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Legal principles established

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  • An employer must prove a valid reason for termination and follow the mandatory disciplinary procedure under Sections 43 and 41 of the Employment Act before summary dismissal.
  • Where no evidence is led to prove the charges leading to dismissal and no disciplinary process is undertaken, the dismissal is both substantively and procedurally unfair.

Court orders

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  1. 1.Award of 12 months' salary (Kshs.196,800.00) in compensation for unlawful dismissal
  2. 2.Award of 1 month's salary in lieu of notice (Kshs.16,400.00)
  3. 3.Award of salary for the month of January 2014 (Kshs.16,400.00)
  4. 4.Award of leave pay for 10 years (Kshs.114,800.00)
  5. 5.Award of prorata leave for 8 months (Kshs.7,653.00)
  6. 6.Total award of Kshs.352,053.00
  7. 7.Costs of the case awarded to the Claimant
  8. 8.Interest on the award at court rates from the date of the award until payment in full

Authorities

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Legislation

  • Employment ActSection 43
  • Employment ActSection 41
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

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, "Paul Makau Mututu v Nasib Industrial Products [2016] KEELRC 1753 (KLR)", Case Analysis (2016). Cause No 1049 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1753/eng@2016-02-05

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