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Case Brief · caselaw.co.ke
ELRCDismissedCause No 615 of 2015· [2018] KEELRC 2074 (KLR)

Caroline Akumu Nyadiero v Barclays Bank of Kenya Limited [2018] KEELRC 2074 (KLR)

Employment and Labour Relations Court of Kenya
6 April 2018
2,095 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court upheld a bank employee's dismissal after she signed a fraudulent medical scheme admission form to get her brother treated at the employer's expense.

What this practically means

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Executive summary

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The claimant, a Sales Manager employed by the respondent bank since 2007, was terminated on 2.10.2014 for fraudulent admission and misuse of the employer's medical scheme on 9.8.2014. She sued for unconditional reinstatement or, alternatively, terminal dues plus compensation for unfair dismissal. At pre-trial, the parties agreed that the employment relationship and the disciplinary procedure followed were not in dispute; the disputed issues were the reason for termination and the terminal dues payable. The claimant testified that her estranged husband misused her medical card to admit her injured brother at Mombasa Hospital, and that she denied signing the admission form. The respondent's Care Manager and Legal Recoveries Officer gave evidence that the admission form named the patient as Mathew Okong'o Owino, with the claimant as next of kin and wife, and that the form bore her signature. The court compared signatures and was satisfied the claimant signed the form, which contained false information intended to have her brother treated at her employer's expense - conduct amounting to fraud. The court held that the reason for termination related to the employee's conduct and was fair under section 45(2)(b), and that dismissal was justified under section 44(4)(g) of the Employment Act. The respondent admitted terminal dues of Kshs.146,287, applied to offset the claimant's outstanding loans. The suit was dismissed with no order as to costs.

Key legal issues

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01

Validity and fairness of the reason for termination

Holding

The reason for termination - fraudulent admission and misuse of the employer's medical scheme - was valid and fair.

Reasoning

The court compared the claimant's signatures on the admission form of 9.8.2014 with her signatures on other documents and was satisfied she signed the form, which contained false information about the patient's identity and relationship to her, intended to have her brother treated at the employer's expense. That conduct amounted to fraud, justifying termination under sections 45(2)(b) and 44(4)(g) of the Employment Act.

p. 3
02

Relief for the claimant

Holding

No relief granted; the suit was dismissed as the termination was justified and terminal dues were applied to offset her loans.

Reasoning

The respondent admitted terminal dues of Kshs.146,287 (one month salary in lieu of notice plus two days' salary), which were applied to the claimant's outstanding loan balance. The claimant admitted the outstanding loans and did not invite the court to determine the balance outstanding after the auction of her car and house.

p. 3

Legal principles established

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  • A reason for terminating employment is fair under section 45(2)(b) of the Employment Act if it relates to the employee's conduct, capacity or compatibility or the employer's operational requirements.
  • An employer may dismiss an employee who commits, or on reasonable and sufficient grounds is suspected of committing, a criminal offence against the employer or the employer's property (section 44(4)(g) of the Employment Act).

Court orders

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  1. 1.Suit dismissed with no order as to costs

Authorities

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Legislation

  • Employment Actsection 45(2)(b)
  • Employment Actsection 44(4)(g)
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court over unfair termination claims (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, "Caroline Akumu Nyadiero v Barclays Bank of Kenya Limited [2018] KEELRC 2074 (KLR)", Case Analysis (2018). Cause No 615 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2074/eng@2018-04-26

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