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ELRCPartially AllowedMemorandum of Claim dated 30th November 2016, amended 31st October 2017 (ELRC, Mombasa)· [2018] KEELRC 866 (KLR)

George Maeba Mageto v Unilever Tea (K) Limited & another [2018] KEELRC 866 (KLR)

Employment and Labour Relations Court
25 October 2018
2,309 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled Unilever Tea unfairly dismissed a 20-year employee over unproven defilement allegations, awarding him Kshs. 479,400.

What this practically means

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Executive summary

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The Claimant, a Weighing Clerk employed by Unilever Tea (K) Limited for over twenty years, was summarily dismissed on 5th September 2016 following allegations of defilement of a two-and-a-half-year-old minor. He challenged the dismissal as unlawful and unfair and sought salary arrears, notice pay, leave allowance, gratuity, twelve months' compensation, defamation damages and a certificate of service. The 1st Respondent maintained that the dismissal followed thorough investigations, a show-cause process and a disciplinary hearing, and that the Claimant's appeal was unsuccessful. The 2nd Respondent, an independent investigator, denied liability. The Court framed three issues: lawfulness and fairness of the dismissal, propriety of the 2nd Respondent's joinder, and entitlement to remedies. Applying Section 43 of the Employment Act and the range of reasonable responses test, the Court held that where an employer elects to charge an employee with a definite criminal offence such as defilement, which attracts a life sentence, it must prove the charge beyond reasonable doubt. The employer's failure to report the matter to police or involve state investigative agencies was held irresponsible and unreasonable. The dismissal was found substantively and procedurally unfair. The Court awarded twelve months' compensation, notice pay, gratuity, salary for days worked and pro-rata leave, totalling Kshs. 479,400 with interest. The defamation claim failed for lack of basis, and the claim against the 2nd Respondent failed for want of specific prayers. Each party was directed to bear its own costs as the claim succeeded only in part.

Key legal issues

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01

Lawfulness and fairness of the summary dismissal

Holding

The dismissal was substantively and procedurally unfair; the employer failed to prove the alleged defilement beyond reasonable doubt and acted irresponsibly by not involving state investigative agencies.

Reasoning

Under Section 43 of the Employment Act the employer must prove the reason for termination. Where the employer elects to charge the employee with a definite criminal offence such as defilement, which carries a life sentence, it cannot rely on the lesser administrative standard of proof. The employer's failure to report the matter to police or seek state investigative intervention meant it could not claim the comfort of the lesser burden. Applying the range of reasonable responses test, the decision to dismiss fell outside the band and had to be interfered with.

p. 4
02

Nexus between disciplinary proceedings and criminal proceedings

Holding

The two processes are distinct and separate, but where the employer adopts a criminal charge as the ground for dismissal, the seriousness of the offence affects the applicable standard of proof.

Reasoning

The Court of Appeal authority in Kenya Power v Wasike establishes that internal disciplinary proceedings are separate from criminal proceedings and acquittal does not bind the employer. However, administrative charges are not to be defined as if they were criminal charges. Where the employer charges a definite and serious criminal offence such as defilement against a child, the employee's liberty interest is engaged and the employer cannot compromise on the sanction, so proof beyond reasonable doubt is required.

p. 3
03

Joinder of the 2nd Respondent

Holding

The claim against the 2nd Respondent failed because no specific prayers were sought against her.

Reasoning

The 2nd Respondent was sued as an independent investigator who acted as an independent contractor to the 1st Respondent. The Court found no employment relationship was pleaded and, decisively, that no specific relief was claimed against her, leaving the claim unsupported.

p. 4
04

Remedies for unfair termination

Holding

The Claimant was awarded 12 months' salary in compensation, two months' salary in lieu of notice, gratuity, salary for days worked and pro-rata leave.

Reasoning

In assessing compensation the Court considered the Claimant's long service of over twenty years and the 1st Respondent's conduct in the dismissal transaction. Notice pay and gratuity were awarded as provided in the applicable CBA, and the claims for days worked and leave pay were admitted and payable.

p. 4

Legal principles established

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  • Where an employer chooses to pursue a definite criminal offence such as defilement against an employee, it must prove the charge beyond reasonable doubt; failure to report the matter to police or involve state investigative agencies deprives it of the lesser civil standard.
  • The employer bears the burden under Section 43 of the Employment Act to establish a valid reason that would move a reasonable employer to terminate employment, tested by the range of reasonable responses.

Court orders

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  1. 1.Judgment entered in favour of the Claimant and against the 1st Respondent for Kshs. 479,400, comprising: 12 months' salary in compensation (Kshs. 216,000); 2 months' salary in lieu of notice (Kshs. 36,000); gratuity for 20 years as per CBA (Kshs. 216,000); salary for 5 days in September 2016 (Kshs. 3,000); pro-rata leave for 2016 (Kshs. 8,400)
  2. 2.The decretal amount to attract interest at court rates from the date of judgment until payment in full
  3. 3.Each party to bear their own costs

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43(1) and (2)
  • Employment ActSection 44(4)
  • Employment ActSection 45
  • Sexual Offences ActSection 8(1) & (2)

Cases cited (2)

  • Reuben Ikatwa & 17 others v Commanding Officer British Army Training Unit Kenya & another
    [2017] eKLR
  • Kenya Power and Lighting Company Limited v Aggrey Lukorio Wasike
    [2017] eKLR
Jurisdiction invoked
Article 162(2) of the Constitution and the Employment and Labour Relations Court Act (employment and labour relations dispute; Employment Act, 2007 claims)

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, "George Maeba Mageto v Unilever Tea (K) Limited & another [2018] KEELRC 866 (KLR)", Case Analysis (2018). Memorandum of Claim dated 30th November 2016, amended 31st October 2017 (ELRC, Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/866/eng@2018-10-25

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