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ELRCDismissedNot stated in the judgment· [2018] KEELRC 300 (KLR)

Felix Ouma Ogada v Foam Mattress Limited [2018] KEELRC 300 (KLR)

Employment and Labour Relations Court
6 December 2018
895 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court upheld a loader's summary dismissal for mattress fraud because the employer followed a fair disciplinary process before firing him.

What this practically means

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Executive summary

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The claimant, employed as a loader by the respondent (a foam mattress manufacturer) since March 2004, was summarily dismissed by letter dated 2nd December 2014 for colluding with other employees to conceal a high density mattress and pass it off as a lower density deluxe mattress. The company identifies mattress density by colour coding, and a high density mattress was found covered with blue (medium density) fabric as it was about to be loaded onto a sales vehicle. CCTV and investigations implicated several employees, including the claimant. The claimant's explanation was that he legitimately bought a deluxe mattress for Shs.3,100 from a sales driver and selected it based on fabric colour, unaware it was heavy duty. The court framed two issues: whether the summary dismissal was substantively and procedurally fair, and whether the claimant was entitled to the prayers sought. The court found it undisputed that there was concealment and passing off involving several culpable employees including the claimant, and that the claimant received a show cause letter, responded, recorded a statement, and attended two disciplinary hearings with union representation. It held the dismissal was for a valid reason and fair in procedure. All ancillary prayers failed: notice was unavailable after summary dismissal, annual leave had been paid, wages were inclusive of housing allowance, the claimant was an NSSF member (barring service pay), and no compensation was due since the dismissal was fair. The entire claim was dismissed with each party bearing its own costs. Signed at Nairobi on 9 November 2018 by Maureen Onyango J and delivered at Kisumu on 6 December 2018 by Mathews Nderi Nduma J.

Key legal issues

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01

Whether the summary dismissal was substantively fair

Holding

The dismissal was for a valid reason - concealment and passing off of a high density mattress as a medium density mattress, in which the claimant participated

Reasoning

The court found it not in dispute that a high density mattress was concealed and passed off as a medium density mattress, and that the scheme involved several employees including the claimant, all of whom were found culpable after investigations and CCTV footage. A dismissal for this gross misconduct met the substantive fairness standard under the Employment Act.

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02

Whether the summary dismissal was procedurally fair

Holding

The procedure was fair: the claimant received a show cause letter, responded, recorded a statement, and attended two disciplinary hearings with union representation

Reasoning

The claimant was issued a show cause letter on 19th November 2014 to which he responded the same day, recorded a statement on 20th November 2014, and was subjected to disciplinary hearings on 22nd and 28th November 2014, where management and union were represented and shop floor union officials represented the claimant. This satisfied the procedural requirements for summary dismissal.

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03

Whether the claimant was entitled to the ancillary prayers (notice, leave, house allowance, service pay, compensation)

Holding

None of the prayers were merited; each failed on its own facts

Reasoning

Notice pay failed because the dismissal was summary; annual leave had been paid (respondent's appendix 13); the daily wage was inclusive of housing allowance; the claimant was an NSSF member and thus not entitled to service pay; and compensation for unfair dismissal was unavailable because the dismissal was substantively and procedurally fair.

p. 2

Legal principles established

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  • Summary dismissal is justified where there is a valid reason for the dismissal and the employee is subjected to a fair procedure, including a show-cause letter and disciplinary hearings with representation

Court orders

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  1. 1.The entire claim is dismissed
  2. 2.Each party shall bear its own costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act (claim for unlawful summary dismissal under the Employment Act)

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, "Felix Ouma Ogada v Foam Mattress Limited [2018] KEELRC 300 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/300/eng@2018-12-06

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