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ELRCDismissedCause No 1045 of 2013· [2018] KEELRC 309 (KLR)

Francis Kirimi Mungania v Barclays Bank (K) Limited [2018] KEELRC 309 (KLR)

Employment and Labour Relations Court of Kenya
30 November 2018
3,618 words in judgment
View original judgmentRead on Kenya Law Watch case
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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, a former Retail Support employee of the Respondent at the JKIA branch, sued for unlawful and unfair termination following the theft of Kshs.33,482,521.00 from the branch on the night of 19th-20th July 2009. He was suspended on half salary, charged in Makadara Criminal Case No. 2977 of 2009, and dismissed on 23rd November 2009; he was acquitted on 14th June 2012. He sought notice pay, leave dues, 12 months' compensation for unfair termination, overtime, gratuity/severance and forgone years of service, totalling Kshs.10,069,815.00, plus costs and interest. The Respondent maintained that the Claimant, as shift leader, failed to arm the alarm and breached cash custody procedures; that a disciplinary hearing was conducted with full rights; and that notice pay was given and pension benefits paid. It also raised limitation under section 90 of the Employment Act, but that issue had been determined in a 2014 ruling by Nduma J dismissing a preliminary objection, and the court held it res judicata. The court framed two issues: fairness of termination and entitlement to reliefs. It found the termination reason was breach of procedure (not the theft), proved under section 43, and that fair procedure under section 41 was followed, including hearing and appeal rights which the Claimant did not exercise. All heads of relief failed: notice pay was given or offset against his loan, leave was exhausted, overtime was unproved, pension benefits had been received, and forgone years of service is not a statutory remedy. The entire claim was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the Claimant's employment was unlawfully and unfairly terminated

Holding

The termination was lawful and fair; the Respondent proved a valid reason (breach of procedure) and followed fair procedure including notice, hearing and a right of appeal

Reasoning

RW1 testified the reason for termination was failure to follow procedure, not the theft allegation. The Claimant was invited to a disciplinary hearing, informed of his right to be accompanied by a colleague or shop steward, was heard, and had a right of appeal which he never exercised. The disciplinary minutes and termination letter show the issue interrogated was procedure. The Respondent proved its reason as required by section 43 of the Employment Act, and the procedure complied with section 41.

p. 4
02

Whether the Court could revisit limitation under section 90 of the Employment Act at submissions stage

Holding

No - the limitation issue was res judicata, having been raised and dismissed in a preliminary objection by Nduma J, against which no appeal was lodged

Reasoning

The Respondent raised limitation by Notice of Preliminary Objection filed in 2013. On 4th June 2014 Nduma J dismissed it because it was not a pure point of law, the matter involving disputed facts. The Respondent did not appeal. The court held the issue could only be revisited with ex parte leave, and since parties had ventilated it and a determination was made, it was res judicata and could not be reargued in submissions.

p. 4
03

Whether the Claimant was entitled to the reliefs sought

Holding

None of the reliefs were granted: notice pay was given or offset against his loan, leave was exhausted, overtime unproved, and pension benefits had been paid

Reasoning

The Claimant admitted at trial he worked 8-hour shifts, conceded he received his pension benefits, and did not query the computation of his dues even though his termination letter indicated he owed the Bank Kshs.1,900,000 which would be offset by his benefits. His failure to seek clarification on computation meant he was content at the time. The claim for forgone years of service is not a remedy under section 49 of the Employment Act.

p. 5

Legal principles established

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  • Once an issue of limitation has been ventilated and determined on a preliminary objection, it is res judicata and cannot be reopened in submissions absent leave
  • An employer must not only state but also prove the reasons for termination under section 43 of the Employment Act
  • An employee's failure to follow set security procedure that occasions loss to the employer constitutes a valid and fair reason for termination

Court orders

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  1. 1.The entire claim is dismissed
  2. 2.Each party shall bear its own costs

Authorities

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Legislation

  • Employment Actsection 90
  • Employment Act 2007section 43(1)
  • Employment Act 2007section 41(1) and (2)
  • Employment Act 2007section 44(3)
  • Employment Act 2007section 44(4)(c)
  • Employment Act 2007section 44(4)(f) & (g)
  • Employment Act 2007section 45(2)
  • Employment Act 2007section 49
  • Limitation of Actions Actsection 4(1)
  • Collective Bargaining Agreement (Banking and Insurance Finance Union)clause A5(a)(iv)

Cases cited (9)

  • Amos Ohuru Wasonga vs. Kingsway Tyres Company Limited
    [2014] eKLR
  • Nicholas Otinyu Muruka vs. Equity Bank Limited
    [2013] eKLR
  • Daniel Warindo vs. Kenya Bureau of Standards
    [2016] eKLR
  • Mr. & Mrs Justice E. Torgbor vs. Ladislaus Odongo Ojuok
    CA Civil Application Nai. 100 of 2015 (Ur 81/2014)
  • Re The Matter of the Interim Independent Electoral Commission
    Constitutional Application No. 2 of 2011; [2011] eKLR
  • Samuel Kamau Macharia & Another v. Kenya Commercial Bank Limited & 2 Others
    S.C. Application No. 2 of 2012; [2012] eKLR
  • Fred Mudave Gogo vs G4S Security Services (K) Ltd
    [2014] eKLR
  • Maria Machocho vs. Total (K)
    Industrial Cause No. 2 of 2012
  • Cabiakman vs. Industrial Alliance Life Insurance Co.
    2004 SCC 55
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 and the Labour Institutions Act (claim founded on contract of service and the Employment Act; limitation under section 90 of the Employment Act raised)

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, "Francis Kirimi Mungania v Barclays Bank (K) Limited [2018] KEELRC 309 (KLR)", Case Analysis (2018). Cause No 1045 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/309/eng@2018-11-13

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